Research Fleet Modernization

NOAA Needs to Consider Alternatives to the Acquisition of New Vessels Gao ID: RCED-94-170 August 3, 1994

The National Oceanic and Atmospheric Administration (NOAA) in the Commerce Department operates a fleet of 18 ships that supports its programs in fisheries and oceanographic research, and hydrographic charting and mapping. Because the fleet is old and technologically obsolete, NOAA has concluded that fleet replacement and modernization are critical to supporting its mission requirements. In this report on the cost-efficiency, accounting, and operating practices of NOAA vessels compared with other federal and private research vessels, GAO found that NOAA has generally agreed with previous studies that it experiment with contracting and chartering the services of private vessels as an alternative to acquiring new ships. NOAA's current fleet modernization plan, however, focuses on the acquisition of new vessels and does not fully consider the role that contracted and chartered vessels could play. Because NOAA does not have the data it needs to adequately assess whether use of private ships could meet its needs, the agency has no assurance that its fleet modernization plans are the most cost-effective means of meeting future program requirements.

GAO found that: (1) past studies of NOAA fleet operations suggest that NOAA should experiment with cost-effective alternatives to acquiring new vessels to meet its program requirements; (2) contracting private-sector vessels would provide greater flexibility as NOAA missions change; (3) although NOAA has considered contracting or chartering vessels in the past, its fleet modernization plan does not fully consider the potential of contracted and chartered services as alternatives to acquiring new vessels; (4) NOAA cannot ensure that its fleet modernization plan represents the most cost-effective means of meeting its future program requirements, since NOAA lacks the financial and operational data needed to assess the cost-effectiveness of contracted and chartered vessels; and (5) NOAA is developing an evaluation methodology to systematically assess fleet modernization alternatives, but budget constraints may limit future chartering experiments.

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