Information on the Purchase of a Gas Generator Engine for a U.S. Coast Guard Cutter

Pursuant to a congressional request, GAO reviewed the U.S. Coast Guard's procurement of a rebuilt gas generator engine for use in a ship.

GAO stated that, although the contractor's offer was considered responsive and the engine was delivered, the Coast Guard subsequently determined that the engine was not usable because it contained disks which previously had been used in aircraft engines. The Coast Guard based this decision on the original engine manufacturer's position that disks previously used in aircraft engines were not safe for marine use. The agency stated that it had no recourse with the contractor because the purchase specifications did not prohibit the use of disks previously used in aircraft engines. As of July 1984, the Coast Guard had not made a decision on what to do with the rebuilt engine. Coast Guard officials stated that the agency has subsequently developed standard specifications to repair its gas generator engines rather than to purchase rebuilt engines. These specifications preclude the use of disks which have been used in aircraft engines.