Detailed Information on the
Coast Guard: Defense Readiness Assessment

Develop a strategic planning process that will perform continual assessments, set aggressive targets and provide updated strategic guidance to operational commanders on a recurring basis.

Improve mission readiness measurement through the implementation of the Defense Readiness Reporting System (DRRS) service-wide, in order to better reflect unit capability and readiness.

Improve mission readiness measurement through the implementation of the Defense Readiness Reporting System (DRRS) service-wide, in order to better reflect unit capability and readiness.

Improve long-term outcome measures of Defense Readiness program.

The Coast Guard needs to do a better job identifying the effect of program investments on program performance. For example, while the establishment of 2 additional port security units allowed Coast Guard to fulfill requests from DoD combatant commanders, it is not clear whether the additional units had a beneficial effect on overall program performance.

The Coast Guard should develop a method for determining ambitious out-year efficiency improvement targets so that program managers are challenged to improve performance in a resource-constrained environment.

Measure: Defense Readiness (Overall)

Explanation:The percent of time that Coast Guard assets (those identified in DOD Combatant Commander operational plans) are ready at C-2 readiness or better, as reported in the US Navy Status of Resources and Training (SORTS) system. (C-2 readiness means that the unit is ready to undertake most of the wartime missions for which it is organized or designated.)

Measure: Defense Readiness of High Endurance Cutters (WHEC)

Explanation:The percent of time that the number Coast Guard WHECs called for in DOD operational plans are ready at C-2 readiness or better, as reported in the US Navy Status of Resources and Training (SORTS) system. (C-2 readiness means that the unit is ready to undertake most of the wartime missions for which it is organized or designated.)

Measure: Defense Readiness of Patrol Boats

Explanation:Percent of time that the number of units called for in combatant commander operational plans are ready at category 2 or better under the Status of Resources and Training System (SORTS).

Measure: Defense Readiness of USCG Port Security Units (PSU)

Explanation:The percent of time that the number Coast Guard PSUs called for in DOD operational plans are ready at C-2 readiness or better, as reported in the US Navy Status of Resources and Training (SORTS) system. (C-2 readiness means that the unit is ready to undertake most of the wartime missions for which it is organized or designated.)

Measure: USCG Defense Program Efficiency

Explanation:This measure is the program's yearly outcome performance (% of time assets are ready at C2 SORTs readiness or better) divided by the program's annual cost. Targets are: 2.5% readiness per $million during non-wartime (2.0) .15% readiness per $million during wartime (.15)

Is the program purpose clear?

Explanation: As required by statute, the Coast Guard maintains a state of readiness to defend the nation. Coast Guard defends the nation as one of the five U.S. Armed Services. The Coast Guard enhances regional stability in support of the National Security Strategy, utilizing our unique and relevant maritime capabilities. In terms of Defense Readiness, the Coast Guard is prepared to provide essential and unique capabilities that support the National Security Strategy, National Military Strategy, and Combatant Commanders' operation plans and requests for forces.

Evidence: ?? (Combatant Commanders are the DoD geographic and functional commanders who are authorized to exercise command authority over assigned military forces in their specified geographic region or functional area of responsibility.) ?? 14 USC 1 : "The Coast Guard is??a branch of the armed forces of the United States at all times??and shall be a service in the Department of Homeland Security, except when operating as a service in the Navy." 14 USC 2 : "??The Coast Guard shall maintain a state of readiness to function as a specialized service in the Navy in time of war??" ?? 14 USC 141 (a) : The Coast Guard may, when so requested by proper authority, utilize its personnel and facilities to assist any Federal agency, State, Territory, possession, or political subdivision thereof, or the District of Columbia, to perform any activity for which such personnel and facilities are especially qualified. 1995 Department of Defense/Department of Transportation Memorandum of Agreement ?? 2004 Department of Defense/Department of Homeland Security Memorandum of Agreement for the use of United States Coast Guard in Homeland Defense ?? 2006 Department of Defense/Department of Homeland Security Memorandum of Agreement for the use of Department of Defense forces in Homeland Security ?? Global Force Management Guidance

Does the program address a specific and existing problem, interest, or need?

Explanation: The Defense Readiness Program provides Coast Guard forces for Department of Defense combatant commanders to use in executing military contingency plans and providing for national defense. Coast Guard Defense Program requirements support these efforts as part of an integrated Joint Force, providing additional capacity in traditional defense missions and unique niche capabilities for combatant commanders. These requirements are clearly outlined in contingency operations plans, as well as national level defense policies and strategies. The Armed Forces defend the nation from external threats that include both state and non-state actors. Operating in forward regions, the Armed Forces provide for homeland defense, assure allies, deter aggression, and swiftly defeat adversaries. Coast Guard provides unique skills, assets and authorities (such as maritime boarding capability and experience, small vessels capable of inshore sustained operations, and broad U.S. law enforcement authority) to ensure U.S. interests are protected in the maritime domain, one of the great commons of the world. Ninety-five percent of U.S. foreign trade, excluding Canadian and Mexican trade, travels by sea. Half the nation's oil and 90% of all military equipment and supplies travel by sea.

Evidence: ?? 1995 Department of Defense/Department of Transportation Memorandum of Agreement ?? 2006 National Security Strategy - "??to defeat this threat, we must use every tool in our arsenal??" ?? 2004 National Military Strategy - "We must strengthen collaboration between our joint forces, agencies at all levels of government, and multinational partners." ?? National Security Presidential Directive NSPD-41/Homeland Security Presidential Directive HSPD-13 ?? 2006 National Fleet Policy Statement ?? Quadrennial Defense Review Report, February 2006, "In the maritime approaches, the Department [of Defense] works alongside the Department of Homeland Security to integrate U.S. maritime defense - optimizing the mutually supporting capabilities of the U.S. Navy and the U.S. Coast Guard??Joint maritime forces, including the Coast Guard, will conduct highly distributed operations with a networked fleet that is more capable of projecting power??.Coast Guard and naval capabilities will be fully integrated." ?? Access to contingency operations plans is controlled by the Chief, Contingency Plans Branch, Plans Division, Assistant Chief of Staff, Department of Defense. This information cannot be submitted as evidence for the PART, but it can be obtained by OMB from the above contact. ?? Coast Guard currently provides 6 patrol boats, 2 law enforcement detachments, personnel in a Navy coastal warfare squadron, and command and control, logistics, maintenance, and support for patrol boats to Operation Iraqi Freedom as executed by Commander, U.S. Central Command. Coast Guard also provides a waterside security detachment to detainee operations at Naval Base Guantanamo Bay, under command of the Joint Task Force Commander for Detainee Operations in support of Operation Enduring Freedom. ?? Coast Guard annually provides a medium endurance cutter to Commander, Southern Command, to support exercise objectives with friendly South American naval forces. ?? At the commencement of Operation Iraqi Freedom (March 2003), Coast Guard provided 2 high endurance cutters, 1 buoy tender, 8 patrol boats, 4 law enforcement detachments, 4 port security units, personnel in a Navy coastal warfare squadron, and 2 elements of command and control, logistics, maintenance, and support for patrol boats to Operation Iraqi Freedom as executed by Commander, U.S. Central Command. ?? At the commencement of detainee operations (January 2002) at Naval Base Guantanamo Bay, Coast Guard provided a port security unit for waterside security under the command of the Joint Task Force Commander for Detainee Operations in support of Operation Enduring Freedom. ?? Prior to commencement of Operation Iraqi Freedom(1992-2002), Coast Guard provided 4 law enforcement detachments to Commander, U.S. Central Command, to enforce United Nations' sanctions against the Iraqi regime. ?? Coast Guard provided periodic high endurance cutter deployments (1998, 1999, 2001, 2003, 2005) to Commander, U.S. Central Command, to enforce United Nations' sanctions against the Iraqi regime and to conduct maritime interdiction operations. ?? Coast Guard provided a medium endurance cutter to Commander, U.S. European Command, in 1997, 1998, 1999, 2000, 2001, 2003, 2004, and 2005 for 90-day deployments to conduct operations in support of U.S. objectives in the European theater of operations. ?? Coast Guard provided a high endurance cutter to Commander, U.S. Pacific Command, in 1997, 1998, 2002, and 2004 for 150-day deployments to conduct operations in support of U.S. objectives in the Pacific theater of operations. ?? In 1999,Coast Guard provided a high endurance cutter to Commander, U.S. European Command, to conduct operations in support of Operation Allied Force against Serbia.

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The Coast Guard provides non-redundant, niche capabilities that are not found elsewhere in the Armed Force, but are critical to accomplishing military objectives. The law enforcement skills provided by Coast Guard forces include, but is not limited to boarding expertise, port security expertise, harbor protection of high value targets, marine environmental response, and a unique ability to engage internationally in a military-to-military capacity that is less intimidating to foreign organizations and viewed as less intrusive than larger naval assets. USCG brings the skills and awareness learned and utilized every day by its forces to Department of Defense combatant commanders to ensure the successful execution of their operational plans. The Coast Guard fulfills its defense roles by building on peacetime competencies that complement those of the Navy and Marine Corps.

Evidence: ?? 1995 Department of Defense/Department of Transportation Memorandum of Agreement on Utilizing States Coast Guard Capabilities by Department of Defense ?? 2004 Department of Defense/Department of Homeland Security Memorandum of Agreement for the use of United States Coast Guard in Homeland Defense ?? Global Force Management Guidance ?? Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan ?? Annex A to the Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan, Coast Guard Example ?? 2006 National Fleet Policy Statement ?? 2006 National Security Strategy ?? 2004 National Military Strategy

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: The Defense Readiness Program provides essential and unique capabilities that support the National Security Strategy, National Military Strategies, and Combatant Commanders' operation plans and requests for forces. The Program's mission is accomplished through standardized Department of Defense programs and processes to ensure full interoperability, efficiency and effectiveness. No changes are requested and no design flaws have been identified. Coast Guard has been able to provide defense-capable units to the Department of Defense when requested.

Evidence: ?? Defense Readiness Long-Term Outcome Measures Table ?? Coast Guard currently provides 6 patrol boats, 2 law enforcement detachments, personnel in a Navy coastal warfare squadron, and command and control, logistics, maintenance, and support for patrol boats to Operation Iraqi Freedom as executed by Commander, US Central Command. Coast Guard also provides a waterside security detachment to detainee operations at Naval Base Guantanamo Bay, under command of the Joint Task Force Commander for Detainee Operations in support of Operation Enduring Freedom. ?? Coast Guard annually provides a medium endurance cutter to Commander, Southern Command, to support exercise objectives with friendly South American naval forces. ?? At the commencement of Operation Iraqi Freedom (March 2003), Coast Guard provided 2 high endurance cutters, 1 buoy tender, 8 patrol boats, 4 law enforcement detachments, 4 port security units, personnel in a Navy coastal warfare squadron, and 2 elements of command and control, logistics, maintenance, and support for patrol boats to Operation Iraqi Freedom as executed by Commander, US Central Command. ?? At the commencement of detainee operations (January 2002) at Naval Base Guantanamo Bay, Coast Guard provided a port security unit for waterside security under the command of the Joint Task Force Commander for Detainee Operations in support of Operation Enduring Freedom. ?? Prior to commencement of Operation Iraqi Freedom(1992-2002), Coast Guard provided 4 law enforcement detachments to Commander, US Central Command, to enforce United Nations' sanctions against the Iraqi regime. ?? Coast Guard provided periodic high endurance cutter deployments (1998, 1999, 2001, 2003, 2005) to Commander, US Central Command, to enforce United Nations' sanctions against the Iraqi regime and to conduct maritime interdiction operations. ?? Coast Guard provided a medium endurance cutter to Commander, US European Command, in 1997, 1998, 1999, 2000, 2001, 2003, 2004, and 2005 for 90-day deployments to conduct operations in support of US objectives in the European theater of operations. ?? Coast Guard provided a high endurance cutter to Commander, US Pacific Command, in 1997, 1998, 2002, and 2004 for 150-day deployments to conduct operations in support of US objectives in the Pacific theater of operations. ?? In 1999,Coast Guard provided a high endurance cutter to Commander, US European Command, to conduct operations in support of Operation Allied Force against Serbia. ?? Vice Admiral Nichols, Commander, US Naval Forces, Central Command, congratulates Expeditionary Strike Group Five (ESG5) upon their completion of operations in support of Operation Iraqi Freedom and departure for home. USCGC Munro was part of the ESG5 deployment (BRAVO ZULU R 240713Z APR 05). ?? RADM Costello, Commander, Cruiser/Destroyer Group One and Commander, Task Unit 55, with responsibility for maritime operations in the Northern Arabian Gulf and waters leading to the port Umm Qsar Iraq, congratulates the performance of the four Coast Guard patrol boats and the buoy tender assigned to his task force in April 2003 (BRAVO ZULU P 211636Z MAR 03). ?? Commodore Tidd, Commander Task Force 55, responsible for maritime operations in the Northern Arabian Gulf and the waters leading to Umm Qsar Iraq, congratulates Coast Guard Port Security Unit 308 upon the completion of their mission to provide waterside security to logistic operations in Kuwait in support of deployed forces in Iraq (2003-2004) (BRAVO ZULU P 221430Z MAR 04). ?? RADM Costello, Commander, Cruiser/Destroyer Group One and Commander, Task Unit 55, with responsibility for maritime operations in the Northern Arabian Gulf and waters leading to the port Umm Qsar Iraq, congratulates the performance of USCGC BOUTWELL upon its departure after four months of maritime security operations in the Northern Arabian Gulf before and after the commencement of hostilities under Operation Iraqi Freedom (BRAVO ZULU R 230315Z APR 03).

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: Working through standardized Department of Defense (DoD) processes, the Coast Guard's Defense Readiness Program provides unique skills, training, and experience to DoD combatant commanders. Coast Guard's resources are provided to DoD through participation in the Joint Planning and Execution Community, which is guided by Joint Operational Planning and Execution System, Joint Strategic Contingency Planning guidance, and Global Force Management Procedures. Use of Coast Guard forces, such as Coast Guard major cutters or deployable Port Security Units used to support mandated Coast Guard missions and responsibilities at home, is scheduled against combatant commander demands through Global Force Management Procedures. These procedures ensure a proper balance between competing demands. Senior Coast Guard Flag Officers discuss employment of Coast Guard assets at each visit to a Combatant Commander and staff. The Commandant of the Coast Guard participates in three senior Defense Leadership Conferences annually. Area staffs participate in force flow conferences that refine the assignment of forces against combatant commander contingency plans. The naval component commanders of the combatant command receive tailored forces that meet their mission requirements. Coast Guard ensures an optimal application of assets and resources by participating in the above processes.

Evidence: ?? Global Force Management Guidance ?? Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan ?? Annex A to the Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan, Coast Guard Example ?? Defense Senior Leadership Conference Agenda

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The Defense Readiness Program has four long-term performance measures. They focus on the readiness of Coast Guard assets required by combatant commander operational plans as part of the National Defense Strategy. They are (1) Percent of the time that all required Coast Guard assets are ready at Status of Readiness and Training System* (SORTS) rating C2 or better, (2) Percent of the time that required cutters are ready at C2 or better, (3) Percent of time that required patrol boats are ready at C2 or better, and (4) Percent of time that required Port Security Units are ready at C2 or better. * SORTS rating C2 means that an asset is capable of performing most of its wartime functions, the minimum acceptable level for units to participate in combatant commander operations plans. The SORTS system has 4 levels of readiness, with C1 being the highest state of readiness, and C4 being the lowest state of readiness.

Evidence: ?? Coast Guard Fiscal Year 2006 Annual Report ?? Defense Readiness Long-Term Outcome Measures Table

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The Defense Readiness Program's long-term target is for all assets required by Department of Defense (DoD) Operational Plans to be ready at a Status of Readiness and Training System (SORTS) rating of C2 or better 100% of the time. Coast Guard has no reservations about setting the performance target at 100% since Operational Plans constitute an agreement between Coast Guard and DoD. Coast Guard believes it prudent to set outcome targets no lower than 100% of what it has agreed to provide. Port Security Units (PSUs) are the only assets for which targets of 100% have been challenging in the past. Coast Guard is taking positive steps to improve PSU performance.

Evidence: ?? COMDTINST 3501.2H, Status of Resources and Training System for Coast Guard Units ?? Defense Readiness Long-Term Outcome Measures Table

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: The Defense Readiness Program is aware that its performance challenge lies with Port Security Units (PSUs) and has crafted annual measures accordingly. Four annual measures are reported on a quarterly basis and measure the different components of PSU readiness: training readiness, personnel readiness, equipment readiness, and the commander's independent assessment of unit readiness. These specific measures are hermetically linked to the Program's long-term goal of overall readiness - that is, the program's long-term outcome measure's numerical calculation includes, as a component, PSU readiness performance.

Evidence: ?? Defense Readiness Annual Measures Table

Does the program have baselines and ambitious targets for its annual measures?

Explanation: The Defense Readiness Program's annual measures are well baselined and have been tracked for several years. These measures are collected and tracked quarterly. The Program recently set targets for these measures. Targets are ambitious and the Program is on track to achieve them.

Evidence: ?? Defense Readiness Annual Measures Table

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: The National Fleet Policy is an agreement between Coast Guard and Navy to crew, train, and equip forces that maximize commonality and interoperability of naval forces. Each partner holds the other accountable for carrying out the Policy. Examples include the following: ?? Navy provides repair maintenance support and/or funding for Navy type/Navy owned equipment installed on Coast Guard assets, commensurate with Navy fleet support levels. ?? Coast Guard Area Commanders' staffs develop major cutter schedules in conjunction with Department of Defense (DoD) global force management processes and participate in combatant commander forces flow conferences. ?? After-action reports discuss positive and negative aspects of actual operations and exercises, serving as performance feedback. ?? The Global Force Management Process addresses assignment of 370 major cutter days in direct support of combatant commanders. ?? DoD flag level Global Force Management Board provides guidance to the force management process, including use of Coast Guard forces. ?? Joint Strategic Planning Guidance directs combatant commanders to coordinate with Coast Guard principal planning agents (Area staffs) for contingency planning. ?? Joint training (Combined Afloat Readiness and Training/Tailored Ship Training Availability), development of joint doctrine like the Joint Tactical Coxswain Tactics, Techniques, Procedures currently being developed and Navy development of cutter class tactical manuals.

Evidence: ?? 2006 National Fleet Policy Statement ?? Appendix 6 of Department of Defense Global Force Management Guidance - ?? Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan ?? Annex A to the Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan, Coast Guard Example ?? USCGC BEAR 151600Z AUG 05 message recaps the USCGC BEAR's deployment to West Africa in support of Commander, US European Command, including lessons learned from the perspective of the Coast Guard unit conducting the mission. ?? USCGC WALNUT 231505Z April 05 message provides the WALNUT's Observations and Lessons Learned while conducting operations in the Northern Arabian Gulf and the waterways leading to Umm Qasr Iraq under the command of Task Force 55 during the hostilities of Operation Iraqi Freedom. ?? COMPACAREA COGARD ALAMEDA CA 152304Z NOV 04 provides a Commander, Coast Guard Pacific Area and Commander, US Navy 3rd Fleet combined quick look (lessons learned) report for a dual service exercise (LEADSHIELD III/ROGEX IV) focused on maritime homeland defense and security conducted by units under their commands. ?? Dec 19, 2003 briefing from Commander US Navy 2nd Fleet and Commander USCG Atlantic Area on a combined dual service Maritime Homeland Security Exercise (SNAP-EX 04-01) which includes Lessons Learned.

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: The Defense Readiness Program is scheduled to undergo an independent program evaluation by the Center for Naval Analysis in Fiscal Year 2007. This review will encompass all significant program elements, specifically focusing on outcome-based analysis. In addition, the Program is externally evaluated by Navy component commanders (through whom combatant commanders exercise their authority) who provide regular feedback on the adequacy of Coast Guard operating units performing actual missions. Component commanders provide an independent view at the conclusion of each deployment.

Evidence: ?? Independent Evaluation Schedule ?? Vice Admiral Nichols, Commander, US Naval Forces, Central Command, congratulates Expeditionary Strike Group Five (ESG5) upon their completion of operations in support of Operation Iraqi Freedom and departure for home. USCGC Munro was part of the ESG5 deployment (BRAVO ZULU R 240713Z APR 05). ?? RADM Costello, Commander, Cruiser/Destroyer Group One and Commander, Task Unit 55, with responsibility for maritime operations in the Northern Arabian Gulf and waters leading to the port Umm Qsar Iraq, congratulates the performance of the four Coast Guard patrol boats and the buoy tender assigned to his task force in April 2003 (BRAVO ZULU P 211636Z MAR 03). ?? Commodore Tidd, Commander Task Force 55, responsible for maritime operations in the Northern Arabian Gulf and the waters leading to Umm Qsar Iraq, congratulates Coast Guard Port Security Unit 308 upon the completion of their mission to provide waterside security to logistic operations in Kuwait in support of deployed forces in Iraq (2003-2004) (BRAVO ZULU P 221430Z MAR 04). ?? RADM Costello, Commander, Cruiser/Destroyer Group One and Commander, Task Unit 55, with responsibility for maritime operations in the Northern Arabian Gulf and waters leading to the port Umm Qsar Iraq, congratulates the performance of USCGC BOUTWELL upon its departure after four months of maritime security operations in the Northern Arabian Gulf before and after the commencement of hostilities under Operation Iraqi Freedom (BRAVO ZULU R 230315Z APR 03).

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: The Coast Guard uses a performance-based budgeting system to tie funding directly to performance goals and targets throughout the budget build process, including resource proposal development, prioritization, and justification. For example, one of the Commandant's key budget themes for the Fiscal Year 2007 Budget, as documented in the Strategic Context section of the Coast Guard's Fiscal Year 2007 Budget Congressional justification, is "Enhancing Mission Performance." To ensure alignment with this budget theme, as part of the Coast Guard's internal budget review, sponsors for all Fiscal Year 2007 Budget proposals were required to identify specific mission program performance impacts. Proposals that demonstrated strong support and linkage to specific mission-program long-term performance objectives were more competitive for consideration for on-budget funding. Coast Guard's Office of Mission Analysis and Office of Budget and Programs work together to identify and prioritize funding requirements to meet the Coast Guard's mission-program performance goals. In order to allocate financial data to programs, missions, and goals, one of the first steps is to obtain actual usage hours for the Coast Guard's mission providers. Coast Guard uses actual hours of asset operation by mission compiled in the Abstract of Operations (AOPS) database, the Aviation Logistics Management Information System (ALMIS) database, and the Prevention Activity Survey. This operational data is combined with the cost per operating hour from the Standard Rate User Fee (SRUF) Model to allocate Coast Guard costs by mission in the Mission Cost Model (MCM). The SRUF is reconciled with the Statement of Net Cost to validate the costs as compared to Coast Guard financial statements. Coast Guard costs by mission are then allocated to the Department of Homeland Security Strategic Goals.

Evidence: ?? Coast Guard Fiscal Year 2007 Strategic Context Congressional-Stage ?? Coast Guard Fiscal Year 2006 Annual Performance Report ?? Coast Guard Fiscal Year 2005 Annual Performance Report ?? Department of Homeland Security Fiscal Year 2005 Performance and Accountability Report

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The Defense Readiness Program uses a variety of tools to conduct its strategic planning. Coast Guard participates in a series of Department of Defense (DoD) Title X games sponsored by the DoD Services and Commander, Joint Forces Command (JFCOM), that project operational and strategic issues 15 years into the future. Additionally, Coast Guard participates in the DoD Quadrennial Defense Review (QDR), another forward looking effort with a 15-25 year horizon. Coast Guard also participates in JFCOM Joint Experimentation exercises that focus on the deployment of future capabilities and validation of doctrine. The semi-annual Joint Worldwide Planners Conference allows the Defense Readiness Program to stay current with the latest issues affecting the Joint Planning and Execution Community. The Commandant's participation in Defense Senior Leadership Conferences ensures that Coast Guard is aligned on the highest level to DoD. As a of a result of Coast Guard's participation in the Dynamic Commitments Beyond 2000 force allocation game conducted by the Joint Staff to support QDR 2001, Coast Guard identified a need to increase the number of Port Security Units (PSUs) it fielded. Analysis of the projected increased demand for these units to be deployed post-USS COLE attack (2000) for major military operations led to a successful budget initiative to create 2 more PSUs in 2004. PSU 301 and PSU 312 have been stood up (manned, equipped, organized). PSU 312 reached initial operating capability (IOC) in Dec 2005. PSU 301 will reach IOC in June 2006.

Evidence: ?? 2006 United States Coast Guard briefing to United Quest ?? 2006 United Quest Case C Information Paper ?? 2006 Quadrennial Defense Report ?? 2001 Quadrennial Defense Report ?? Dynamic Commitment Game 2 Briefing ?? Dynamic Commitment Game 2 Analysis ?? Coast Guard Fiscal Year 2004 Annual Report (Stand up 2 additional PSUs) ?? World Wide Planners Conference Agenda 2005 ?? Defense Senior Leadership Conference Agendas

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: Status Of Readiness and Training System (SORTS) data is collected quarterly for all units. Monthly SORTS data for Port Security Units is collected and analyzed for deficiencies. Coast Guard reviews deployment reports for operations in support of combatant commanders and analyzes lessons learned from operations and exercises that included Coast Guard. Lessons learned are placed in a lessons learned system and tracked until closed. Monthly data allows the program manager to interface with the training community to ensure training opportunities are being met, particularly coxswain training quotas. Lessons learned from deployments allow the program to address boat operation and maintenance requirements and communications connectivity needs.

Evidence: ?? Status Of Readiness and Training System (SORTS) data reports ?? COMDTINST 3010.19A Lessons Learned Instruction ?? Coast Guard Universal Lessons Learned System - Sample Lessons ?? Coast Guard Fiscal Year 2006 Annual Report

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: Coast Guard holds its managers accountable by using a detailed and comprehensive officer evaluation and reporting system. Promotions and career continuance (selections for which are competitive), are based on qualitative performance criteria that, for example, notes whether an officer, "employed wasteful methods" (low score), was "cost conscious; sought ways to cut waste" (medium score), or "found ways to systematically reduce cost, eliminate waste," and improve efficiency" (high score). Program managers actively intervene to improve performance of Port Security Units. Steps were taken to fill empty spaces in Port Security Units after their demobilization following employment in Operation Iraqi Freedom. When monetary incentives were not sufficient to solicit a satisfactory number of voluntary port security unit participants, individuals were assigned involuntarily by appropriate personnel management organizations. Equipment and logistics were replenished as part of the post-deployment processes via supplemental funding.

Evidence: ?? Defense Readiness Sample Officer Evaluation Report ?? COMCOGARD MLC LANT 292038Z MAR 05 is a message from Commander, Coast Guard Maintenance and Logistics Command, Atlantic Area to its subordinate personnel commands directing them to solicit for volunteers to fill Port Security Unit ranks immediately. If unable to fill ranks to a full complement, personnel commands are to involuntary assign Coast Guard reservists to the shorthanded Port Security Units. ?? COMPACAREA COGARD 112259Z MAR 05 is a message from Commander Coast Guard Area Pacific emphasizing the importance of filling Port Security Units with adequate numbers of Coast Guard reservists, either through volunteers or involuntarily. ?? COMLANTAREA COGARD 011922Z MAR 05 is a message from Commander, Coast Guard Atlantic Area directing the filling of Port Security Unit with adequate numbers of personnel by June 2005. ?? ALCOAST 171-04 authorizes the payment of an additional $10 per drill for members assigned to Port Security Units as an incentive to increase voluntary assignment to Port Security Units. The overall objective was to fill the depleted ranks of Port Security Units with willing Coast Guard reservists. ?? COMDT COGARD 141335Z FEB 05 is a message from the Commandant of the Coast Guard to all Port Security Units updating their requirements to maintain a reduced level of Meals-Ready-to-Eats as a condition of readiness. Status of Readiness and Training decision aids are adjusted for the new requirement. ?? COMDT COGARD 311312Z JAN 06 is a message from the Commandant of the Coast Guard to all Port Security Units updating their requirements to maintain certain Chemical, Biological, or Radiological equipment and certain medical stocks as a condition of readiness. Status of Readiness and Training decision aids are adjusted for the new requirements.

Are funds (Federal and partners') obligated in a timely manner, spent for the intended purpose and accurately reported?

Explanation: Coast Guard obligates substantially all (over 99%) of its operating funds (Operating Expense Appropriation) each year. Virtually all capital acquisition funds (Acquisition, Construction, and Improvement Appropriation) are obligated prior to expiring. The Coast Guard's Office of Resource Management enforces the provisions of Commandant Instruction M7100.3 (series), Financial Resources Management Manual, that specifies quarterly spending rates and funding carry over limits. Obligation rates are tracked bi-weekly by Coast Guard's Office of Resource Management.

Evidence: ?? Quarterly spend down rates are enforced in accordance with the Financial Resource Management Manual, COMDTINST M7100.3 (series) ?? Estimated Obligations 15 March 2006

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: Although the Coast Guard has established an efficiency standard for the Defense Readiness Program, this metric does not drive efficiency improvements because out-year targets do not vary. The measure is the overall program performance divided by the overall program cost and is best understood when keeping in mind that spending for Operation Iraqi Freedom increased substantially in Fiscal Year 2003. The Coast Guard has made good use of technology investments to improve efficiencies, and while there is anectodal evidence that observed program efficiency has improved in recent years, the Coast Guard has not established a performance standard toward which managers can work to improve efficiencies.

Evidence: ?? Defense Readiness Efficiency Measure Table

Does the program collaborate and coordinate effectively with related programs?

Explanation: Coast Guard liaison officers are assigned to Navy Expeditionary Warfare staff (N75), Navy Policy Staff (N5), Joint Staff Operations (J3), Joint Staff Logistics (J4), Joint Staff Plans and Policy (J5) and Joint Staff Transformation and Doctrine (J7). Lower echelon staffs and combatant commander staffs have Coast Guard liaison officers assigned to facilitate planning and execution of defense operations. Area Commanders and staffs collaborate with combatant commander and Navy staff counterparts. Coast Guard units routinely participate in joint training and joint exercises. Coast Guard participates in Global Force Management processes and combatant commander deliberate planning and crisis planning, including the scheduling of force deployments.

Evidence: ?? World Wide Planners Conference Agenda 2005 ?? Global Force Management Guidance ?? Global Force Management Issue Paper ?? Senior Defense Leadership Conferences ?? Flag officer trips to combatant commanders (Coast Guard Force Employment by USCENTCOM, Future Expeditionary Operations, LEDET Employment in USCENTCOM, G-C and PACOM Meeting 11Jan2006, G-CV SOUTHCOM GTMO Issue Paper March2005, PACOM Visit - MARSEC - 11January2006, PACOM Visit PACRIM 11Jan2006, G-CV PACOM Trip General Issues Mar2005, District Commander Meeting with Northcom). ?? Flag officer consultations with Department of Defense counterparts (G-C Lunch with LTG Odierno, G-C and CNO Phone Conversation March 2006, G-C and CNO February 2006, OPSDEP NSS and QDR Risk 04Jan2006, JS Service Chief NSS and QDR Risk, OPSDEP Session on USNORTHCOM CONOPS (MHLD) 28March2004, Service Chiefs Session on USNORTHCOM CONOPS (MHLD) 30Mar2004, Meeting with DoD PDAS ASD (HD)). ?? Participation in Joint Staff Action Procedures ?? Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan ?? Annex A to the Fiscal Year 2006-2008 Global Force Management Allocation Schedule and Plan, Coast Guard Example ?? Coast Guard Participation in Key Combatant Commander Events 1997-2005 ?? 2006 National Fleet Policy Statement

Does the program use strong financial management practices?

Explanation: The Department of Homeland Security (DHS) Office of Inspector General assigned the Coast Guard 10 Material Weaknesses for financial reporting during the Fiscal Year 2005 CFO Audit. These audit results contributed to DHS receiving a disclaimer opinion on their Fiscal Year 2005 financial statements. In each of these 10 Material Weakness areas, Coast Guard processes do not comply with required reporting standards. In particular, Financial Management and Oversight, Financial Systems, and Financial Reporting are the Coast Guard-wide Material Weaknesses that impact all programs. The Coast Guard shares DHS' goal of clearing all Material Weaknesses by Fiscal Year 2007 and is engaged in an aggressive plan to address and correct all known issues. For managerial cost information, the Coast Guard has a well-developed cost assignment system that meets or exceeds the standards for Federal Accounting Standards Advisory Board Statement of Federal Financial Accounting Standards # 4.

Evidence: ?? 2005 Independent Auditor's Financial Management Report ?? Department of Homeland Security Fiscal Year 2005 Performance and Accountability Report ?? Department of Homeland Security Fiscal Year 2005 Notice of Findings and Recommendations ?? Coast Guard Fiscal Year 2005 Audit Remediation Plan

Has the program taken meaningful steps to address its management deficiencies?

Explanation: The Defense Readiness Program tracks the monthly Status Of Readiness and Training System (SORTS) reporting of Port Security Units (PSUs) to identify the primary reasons for less than satisfactory SORTS ratings. The Program reports quarterly to Department of Homeland Security on SORTS measures and the reason for not achieving projected targets. The Coast Guard also uses a lessons learned reporting system to track reports from the field with regard to positive and negative aspects of real world deployments and exercises conducted by units deployed in support of the Defense Readiness Program. The Program monitors the Coast Guard Area cutter schedules to ensure the mission planning targets promulgated by senior Coast Guard leadership for cutter support to combatant commanders are executed. The program holds Port Security Unit Commanding Officer conferences approximately once every 18 months. The 2004 conference topics included discussions of emerging non-lethal technologies and Operation Iraqi Freedom lessons learned with respect to equipment and personal qualifications standards. Specific results of the conference included an update to the Special Missions Training Manual, posting of the PSU master training list on a website available to all and easily updatable, and changes in training guidelines to allow coxswains access to Level I training for PSU members (a prerequisite for level II coxswain training conducted by Special Mission Training Center). The May 2006 PSU Commanding Officer's conference will address revision to the PSU organization manual, training changes, including tailored unit training availability and field exercise problems, communications requirements and SORTS reporting standardization.

Evidence: ?? Coast Guard Fiscal Year 2006 Mission Planning Guidance ?? Port Security Unit Commanding Officer's Conference Draft Agendas ?? COMDTINST 3010.19A Lessons Learned Instruction ?? Coast Guard's Universal Lessons Learned System - Sample Lessons ?? Department of Homeland Security Performance Report 1st Quarter Fiscal Year 2006

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: Since Fiscal Year 2000, the Defense Readiness Program has made significant progress in reaching its long-term goal of maintaining 100% Status of Readiness and Training System (SORTS) readiness of C2 or better. 378' High Endurance Cutters and 110' Patrol Boats consistently met program readiness standards. Port Security Units (PSUs) have been the major contributor to readiness shortfalls. From Fiscal Year 2000 to Fiscal Year 2003, overall Program performance was increased from "ready 51% of the time" to "ready 78% of the time." For the past two fiscal years, performance has trended downwards because of PSU staffing shortfalls and training problems, most of which appear related to OIF demobilizations. The Coast Guard has used this performance data to corrective actions by increasing its PSU staffing levels to optimal levels. Program managers anticipate this will improve training readiness and, as a result, increase overall Coast Guard readiness significantly in the next few years.

Evidence: ?? Defense Readiness Long-Term Outcome Measures Table ?? Coast Guard Fiscal Year 2006 Annual Report ?? COMCOGARD MLC LANT 292038Z MAR 05 is a message from Commander, Coast Guard Maintenance and Logistics Command, Atlantic Area to its subordinate personnel commands directing them to solicit for volunteers to fill Port Security Unit ranks immediately. If unable to fill ranks to a full complement, personnel commands are to involuntary assign Coast Guard reservists to the shorthanded Port Security Units. ?? COMPACAREA COGARD 112259Z MAR 05 is a message from Commander Coast Guard Area Pacific emphasizing the importance of filling Port Security Units with adequate numbers of Coast Guard reservists, either through volunteers or involuntarily. ?? COMLANTAREA COGARD 011922Z MAR 05 is a message from Commander, Coast Guard Atlantic Area directing the filling of Port Security Unit with adequate numbers of personnel by June 2005. ?? ALCOAST 171-04 authorizes the payment of an additional $10 per drill for members assigned to Port Security Units as an incentive to increase voluntary assignment to Port Security Units. The overall objective was to fill the depleted ranks of Port Security Units with willing Coast Guard reservists. ?? COMDT COGARD 141335Z FEB 05 is a message from the Commandant of the Coast Guard to all Port Security Units updating their requirements to maintain a reduced level of Meals-Ready-to-Eats as a condition of readiness. Status of Readiness and Training decision aids are adjusted for the new requirement. ?? COMDT COGARD 311312Z JAN 06 is a message from the Commandant of the Coast Guard to all Port Security Units updating their requirements to maintain certain Chemical, Biological, or Radiological equipment and certain medical stocks as a condition of readiness. Status of Readiness and Training decision aids are adjusted for the new requirements.

Does the program (including program partners) achieve its annual performance goals?

Explanation: While annual program performance has generally trended upward in the last several years, there were no annual performance targets set, so it is impossible to determine whether performance goals were met. As a result of the PART review, the Coast Guard has established out-year performance goals, which will correct this discrepancy in the future.

Evidence: ?? Defense Readiness Annual Measures Table

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: Although the program has demonstrated moderate efficiency gains over previous years, because the Coast Guard has not set ambitious targets for efficiency improvements, it is unclear whether program mangers could have achieved even more success had they been challenged to do so. Additionally, while the program is able to point to anecdotal examples of efficiency gains, it has not quantified the actual cost savings associated with various initiatives, making it difficult to determine whether the efficiency gains were wholly the result of revised business practices, or the effect of better staff performance. The Defense Readiness Program has increased cost effectiveness by seeking out and implementing improved efficiencies. Specifically, the Program recently did the following: ?? Transferred boat management and configuration control to Coast Guard Boat Forces Office for economies of scale and benefits of professional, experienced management responsibilities. ?? Cut costs by reducing unnecessary inventory requirements and reducing holdings of readily available items. ?? Modified medical supply policy to reflect a "just-in-time" supply-purchase concept, after identifying that supply standards were causing medicines to expire on the shelf. ?? Maximized warranty opportunities by proactively engaging a boat manufacturer to resolve perceived trim problems with new transportable port security boats. ?? Cut costs by reducing the requirement to carry on hand 30 days worth of Meals Ready to Eat (MREs) to 15 days for Port Security Units.

Evidence: ?? COMDT COGARD 141335Z FEB 05 is a message from the Commandant of the Coast Guard to all Port Security Units updating their requirements to maintain a reduced level of Meals-Ready-to-Eats as a condition of readiness. Status of Readiness and Training decision aids are adjusted for the new requirement. ?? COMDT COGARD 311312Z JAN 06 is a message from the Commandant of the Coast Guard to all Port Security Units updating their requirements to maintain certain Chemical, Biological, or Radiological equipment and certain medical stocks as a condition of readiness. Status of Readiness and Training decision aids are adjusted for the new requirements.

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: Coast Guard provides unique defense capabilities that are not available elsewhere in the Department of Defense (DoD). No other public or private programs provide a similar capability, nor are they authorized to conduct military maritime defense operations. Coast Guard forces are routinely requested to support combatant commanders' Theater Security Cooperation Plans in areas where a Navy presence would be too provocative. Navy conducts similar programs when it deploys military maritime capabilities world-wide in support of combatant commanders' major contingency operations and routine shaping exercises and operations. However, Navy capabilities are significantly different and focus exclusively on organizing, training, equipping, and employing military forces in support of combatant commanders. A limited number of state naval reserve programs exist, but unlike Coast Guard forces, these forces are not available for worldwide employment to conduct operations under combatant command authority. State naval reserve programs are chartered for operations in state waters only.

Evidence:

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: No independent evaluations have been conducted, although one is scheduled for Fiscal Year 2007. Program is externally evaluated by Navy component commanders (through whom combatant commanders exercise their authority) who provide regular feedback on the adequacy of Coast Guard operating units performing actual missions. Component commanders provide an independent view at the conclusion of each deployment.

Evidence: ?? Vice Admiral Nichols, Commander, US Naval Forces, Central Command, congratulates Expeditionary Strike Group Five (ESG5) upon their completion of operations in support of Operation Iraqi Freedom and departure for home. USCGC Munro was part of the ESG5 deployment (BRAVO ZULU R 240713Z APR 05). ?? RADM Costello, Commander, Cruiser/Destroyer Group One and Commander, Task Unit 55, with responsibility for maritime operations in the Northern Arabian Gulf and waters leading to the port Umm Qsar Iraq, congratulates the performance of the four Coast Guard patrol boats and the buoy tender assigned to his task force in April 2003 (BRAVO ZULU P 211636Z MAR 03). ?? Commodore Tidd, Commander Task Force 55, responsible for maritime operations in the Northern Arabian Gulf and the waters leading to Umm Qsar Iraq, congratulates Coast Guard Port Security Unit 308 upon the completion of their mission to provide waterside security to logistic operations in Kuwait in support of deployed forces in Iraq (2003-2004) (BRAVO ZULU P 221430Z MAR 04). ?? RADM Costello, Commander, Cruiser/Destroyer Group One and Commander, Task Unit 55, with responsibility for maritime operations in the Northern Arabian Gulf and waters leading to the port Umm Qsar Iraq, congratulates the performance of USCGC BOUTWELL upon its departure after four months of maritime security operations in the Northern Arabian Gulf before and after the commencement of hostilities under Operation Iraqi Freedom (BRAVO ZULU R 230315Z APR 03).