The Advanced SEAL Delivery System (ASDS) is a hybrid combatant submersible providing clandestine delivery and extraction of Navy SEALs and equipment in high-threat environments. The first ASDS has had significant performance issues and has cost, to date, over $885 million. In May 2006, Congress requested that GAO review ASDS. This report examines (1) how the Navy managed ASDS risks through its contracts and (2) the status of major technical issues and program restructuring.
Recommendations for Executive Action
|Department of Defense||In order to prevent the government from accepting additional undue risks and expense on ASDS, the Secretary of Defense should establish acceptable cost, schedule, and performance criteria, based on fully defined scopes of work, and assess the boat's ability to meet these criteria at the Phase 1 and Phase 2 critical systems reviews and at the management reviews. If, by the time of the program decision in mid-2008, ASDS does not meet acceptable cost, schedule, or performance criteria, the Secretary of Defense should discontinue the effort and not proceed with further tests.|
|Department of Defense||In order to prevent the government from accepting additional undue risks and expense on ASDS, the Secretary of Defense should ensure that, if the review results meet acceptable cost, schedule, and performance criteria, the design changes resulting from the Phase 1 critical systems review essential for demonstrating ASDS reliability and maintainability be incorporated in sufficient time to be tested under operational conditions prior to the planned mid-2008 decision on how to best meet special operations forces' requirements.|
|Department of Defense||In order to prevent the government from accepting additional undue risks and expense on ASDS, the Secretary of Defense should require the Navy to include provisions in the ASDS contracting strategy chosen when the existing basic ordering agreement expires that (1) appropriately balance risk between the government and the contractor through the contract types selected, (2) incentivize the contractor's performance and promote accountability for achieving desired outcomes by properly structuring the award and incentive fees, and (3) provide the kind of management and oversight of the program necessary to hold the contractor accountable for performance.|