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Tiêu đề Coast Guard Observations on the Genesis and Progress of the Service's Modernization Program
Trường học University of Washington
Chuyên ngành Maritime Studies / Coast Guard Operations
Thể loại Report
Năm xuất bản 2008
Thành phố Washington, D.C.
Định dạng
Số trang 32
Dung lượng 2,67 MB

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We also tvaluated how these efforts aligned with key practices identified in previous GAO ‘work related to organizational transformation and development of performance measures.” Further

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‘The Honorable Robert C Byrd

Chairman The Honorable George Votnovich

Ranking Member

Subcommittee on Homeland Security

Committee on Appropriations

United States Senate

The Honorable David E Price

‘raditional missions—such as ensuring the safety and security of commercial

shipping, safexnarding U-S fisheries, interdicting the snougeling of ilcit drugs, and conducting search and rescue operations—but also homeland security

responsibilities that expanded after Sepieraber 11, 2001 (9/11) The modernization program is specifically focused on modifying the Coast Guard's command and contral structure'— including the establishment of four new organizational entities—as well

as updating mission Support systems, such as maintenance, logisties, financial

management, human resources, aequisitions, and information technology The

proposed changes will have a major impact on a variety of functions servicewide,

7 Within te Const Guard, command and control reer to the exer of suo a drcton propery denignatedcominander over assigned forces the sccomplhiment of the sion, Coa

"mui con inctions are perfomied through sn sreangement of etsonne,eaunment

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including management of Deepwater—the long-term, multibillionlollar program £0 parade the Coast Guards aging Meet of water vessels and airerall

‘The conceptual framework for the modernization program is reflected in 10 Conunazidant Intent Action Orders, which were issued by the Conntuandanf of the Coast Guard in 2006 Subsequently, congressional direction accompanying the Coast Guard's fiscal year 2008 appropriations required the Coast Guard to submit a report describing and assessing each of the 10 action orders.” Further, the congressional direction required that following submaission of the Coast Guard's report, we were to review the data and analysis supporting the report and, where appropriate, the status

of implementation In August 2008, the Coast Guard subrulited its report on the

‘modemization program to the Senate and House Appropriations Committees hn accordance with the congressional ditection and as discussed with your offices, this report assesses the Coast Guard's modernization progeam Specifically this report answers the following primary research questions

‘accompanying the Consolidated Appropriations Act of 2008 also directed us to evaluate the benefits and drawbacks of including all funding for Coast Guard

personnel within the Operating Expenses (OE) appropriation.’ Our review of this Assue is contained within this report as enclosure IL

To address the primary research questions, we reviewed the August 2008 report sabimitled hy the Coast Guard to the Senate and Hose Appropriations Coramittees

To obtain additional perspectives an the genesis of the Coast Guard's modemization

‘Our reports an etimonios ovr the pase LI yeanshaye inched detain the Despite program Conse Improves Deepwater Management, bul Outcome Stl Uncertain, GAOSR45 (Washington [Ce une St, 2) Coat Gund: Obseroitions on the Fiseat Vor 2000 Ledge, Herod

Performs, tt Related Cheng GAOASADAT (Wastin, Dac Ma 3) ad Cot Guar Chatieges fcting DopwaterasoetDeplepment nd Management tnd Bforts a Address

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efforts and other factors it considered, we reviewed intemal studies condueted by the Coast Guard, as well as relevant external studies—particularly studies conducted by either the Department of Homeland Security's (DHS) Office of Inspector General or GAO,’ At Coast Guard headquarters, we interviewed members of the Strategic

‘Transformation Team, whose primary responsibility is to oversee the planning and execution of the service's overall modemization and transformation efforts We also tvaluated how these efforts aligned with key practices identified in previous GAO

‘work related to organizational transformation and development of performance measures.” Further, we interviewed merubers of the National Academy of Public Administration's (NAPA) projeet team — which, in April 2008, began reviewing the Coast Guard’s modernization prograrn.” We also reviewed an interim progress report (ated Decernher 2008) prepared by NAPA as well as the final report on the

modernization program provided 10 the Coast Guard on April 30, 2000," To address the Issue of personnel account funding, we reviewed pertinent legislative history of the Acquisition, Construction, and Improvements (ACAI) and the OB appropriation accounts, as well as Coast Guard position papers and other docutentation regarding possible consolidation of the Coast Guard's ACAT personnel funding into the OF account We conducted this performance audit front November 2008 to June 2009 in accordance with generally accepted government auditing standards, Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence

to provide a reasonable basis for our findings and conclusions based on our audit objectives We believe that the evidence obtained provides a reasonable basis for our findings and conclusions hased on our ant objectives More details about the seope and methodology of our work are presented in enclosure IIL

as Hurricane Katrina, According to officials, these events highlighted the need for ‘greater standardization of policies and procedures, which the new conmesand Structure is intended to address, As an overarching cause for action, Coast Guard

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officitls also stressed a need for positioning the service {0 he more responsive to 21"

‘century demands and challenges by eliminating existing geographic command

boundaries and establishing a more functionally based organizational structure

‘The Coast Guard has several efforts wer way or planned for monitoring progress of the modernization program and identifying needed improvements; the

however, development of applicable performance measures to evaluate results

remains in the early stages, Consistent with project management principles and our previous work on organizational transformation, the Coast Guard has established nplementation tines to help guide the overall modernization program, which (clude key actions and milestones." The Coast Guard has reported that all interim key actions have been completed on schedule, including the implementation of

several new organizational components, However, the Coast Guard has requested additional statutory authorities designed {o fully establish the new command

structure and associated senior leadership positions, currently envisioned {0 be in place in June 2009 For some of the organizational components established to date, the Coast Guard has also developed business pkans that further identity key goals, activities, and specific milestones In addition, the Coast Guard has initiated efforts to

‘conduct external ane! internal assessments of various aspects of the modernization program For example, the Coast Guard engaged NAPA (o conduct a third-party, ilepenclent review of the Coast Guard's overall modernization efforts This review—

\hich began in April 2008 aud was completed in April 2009—was conducted to

Identify the strengths, weaknesses, opportunities, and risks involved in the current ‘modernization approach and make recommendations for improvernents and risk rnitigation Internally, the Coast Guard is conducting a series of process reviews intended (o identify the key intemal setivties aad oulpaits required for mission

execution within the new structure.’ These process reviews—currently scheduled {or completion during the summer of 2009.—are also intended to generate inputs for a Tonger-term effort to identify and develop applicable performance metrics for

assess the results ofthe modernization program AS the new organizational

‘components and command elements are further implemented, the development of relevant performance metrics will become increasingly imporiant to help ensure that the purported benefis from modernization are realized

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ikxiotprogirts and the associated budget request for fiseal year 2010).” Following,

te terrorist attacks of 9/11, the Coast Guard's homeland secusity mission-

programs—such as conducting harbor patrols and participating in global military

‘operations—took on increased significance ane! demands

Table: Overvaw of Const Guard lesions and Progrems and the Fecal Yer 2010 Budget Raquast

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Shortly after taking office in May 2006, the Commandant issued 10 action orders (Commandant Intent Action Orders) that—as reported by the Coast Guard—form the framework for the modernization and strategie transformation the Coast Guard is undergoing to ultinately be best organized for optimal ndssion execution.” The 10 action omdets constitute interrelated initiatives that encompass efforts ranging, for

‘example, from improving the service's financial accounting system to developing a more effective command and control structure, Subsequently, in August 2008, the Const Guard reported that the 19 initiatives were combined into five coordinated efforts that make up the Coast Guard's current modernization prograr, The purpose

of these efforts isto establish enhance the Coast Guard's business processes Four of the five modernization efforts a more responsive organizational structure and focus on changes to the Coast Guard's organizational command structure

Specifically, the Coast Guard has proposed establishing four new organizational entities—the Deputy Commandant for Mission Support (DCMS), the Deputy

Commandant for Operations (DCO), Operations Command (OPCOM, and Force Readiness Command (FORCECOND The frst two entities, DCMS and DCO, are to be located in headquarters whereas OPCOM and FORCECOM are field-based command To facilitate implementation of the modemization program, the Coast Guard created a Strategic Transformation Team, which consists of one fag officer

nd 16 fulltime staff representing various components of the service.” The tearm is seat of the Coas Guard's modernization efforts, See enclosure [for additional information regarding the Coast Guards original action omens and the four new organizational entities

‘The Coast Guard's Modernization Program Derives from Multiple Sources

‘Through our discussions with Coast Guard officials and review ofthe service's

planning and implementation documents, we determined that the Coast Guard's modernization programa is derived from multiple sources that collectively encompass atime frame of more than two decades In addition to addressing documented Ueficiencies, ran’ of the modernization progran's various initiatives largely reflect tho judgment and preeogatives ofthe service's leadership Generally, asa starting point for discussing the genesis of the modemuization program, service officials cited

‘an internal study (the Gilbert study that led toa major organizational realignment in 1987." Specitically, among other results, this study led to a reduction in the mamber

of Coast Guard districts and ereated two new regional Maintenance and Logistics Cornmands—one at Governors Islan (New York harbor) and another at Coast Guard Island (Alameda, California)" According co the Coast Guard, the current

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realign der ons deenzaton progam all lgties support fut ee be

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todlernjzation program addresses some ofthe changes initially proposed by the Gilbert study that were never fully implemented For example, the proposed

transiian toa more centralized command siructure is intended to reditce work

‘duplication and enhance standardization across the agency

Coast Guard officials also noted that additional catalysts for improvements have been studies conducted by DHS's Office of Inspector General," GAO," and others Such extemal studies have addressed not only the Coast Guant's acquisition organization and processes but also various other aspects ofthe service's operations sad

capabilities, including the financial management system, Regarding the latter, for

‘example, external audits have documented longstanding financial management

deficiencies In 2008, the independent auditor reported that for the filth year, it was

‘mable to provide an opinion on DHS's balance sheet, largely because of the Coast Guard's material weaknesses in internal control."

Other contributors tothe impetus for modemization cited by Coast Guard officials

‘were lessons leamed from the events of /L1 and from preparing for and responding, {o major natural disisters, such as Hurricane Katrina, which made lanlall in August

2005 As discussed in onr 2006 report, the Coast Guard played a key roe in the

planning, espouse, and recovery efforts for Hurricane Katrina in three mission

areas—seareh and rescue, marine pollution response, and management of mari

commerce.” According to Coast Guatd officials, these operations highlighted the

‘need for enhanced standardization across the service andl more centralized logistics an asset management Under dhe new command streture, the Coast Guard ias established five new logistics and service centers that are intended 10 ensure

consistent delivery of support services and full fe cycle management for applicable product lines,

Inspector Genel Ztepentonssaitors Report om DHS FY 3008 Pimanrimiaeszaie CN 0A (Wvtshingon D6, November 2008)

Murvicawe Kutrla, GÀO 09048 (Washing D.C: duly 31,3005)

The ve hgh and sevice eaters te the Aviation Logics Center (East Clty, Nott

‘carolina: the Surface Foros Lagaies Center MBaleore Maryland): the Ste Inatrtite

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Information Peeing Sorice Center Alewnndri, Vga anl the Personne Servos Conor (Äningtom iyi) Ao Maven 200, Fie of these tice a series centers ee eh

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Further, Coast Guard officials stressed thai, a8 an overarching or holistic cause for action to modemize, the service must be positioned to respond to a wide array of 21° century demands and challenges, The Coast Guard cites, for example, everincreasing

‘groveth int maritime trade and tourism (more and larger vessels, inereased waterborne transport of qnefied natural gas, expanded activity in the Arete region, ee.) and the persistence of ferrorisin and other transnational threats, such as drug cradsicking andl znass migration By eliminating existing geographical conumand barriers and

establishing a more centralized and functionally based organizational structure, the Const Guard believes it can better mieet these challenges

‘The Coast Guard Has Ongoing Efforts to Monitor Progress of the Modernization Program, but Work Remains to Develop Performance Metries

‘The Coast Guard has several efforts under way or planned that are intended £0 monitor the implementation progress of the modernization program and identify needed improvements; however, more work remains to develop applicable

performance metrics fo evaluate the results, Asan overarching planning effort, the Coast Guard has established timelines that identify the sequencing and target dates for key actions related to the modernization program consistent with project

management principles.” Our prior work has shown that such aetion-oriented goals along with associated timelines and milestones are eritical to sucessful

‘organizational transformation efforts and are necessary to track an organization's progress toward ils goals.” As of March 2009, (he Coast Guard reported that it has met all ofthe key interim milestones for the phased implementation of the

‘modernization program Some of the interim actions that have been completed

include the establishinent of new organizational components such as the Acquisition Directorate, the Deployable Operations Group, and the Oflice of Financial

Transformation and Compliance, a8 well as several logisties centers dedicated to specific Coast Guard assets (see fig, 1) However, as further noted in figure 1, the Coast Guard has requested additional statutory authorities to reorganize the Service's senior management structure and leadership positions According to the Coast

Guard, enactinent ofits legislative change proposal will enable the service 10

establish four new organizational entities DCO, DCMS, OPCOM, and FORCECOM— currently scheduled to be in place in June 2008."

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‘hye steven mira! postions icon suit o mange ml errs each othe st

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Figo t Sekele# Kej Aciens Uaderhing the Cosel Gare Modernization Progam

For some of the new organizational components established to date, additional

Implementation plans are also in place These plans, whether referred to as business plans orstrategic plans, represent a range of efforts to further identify key goals, activities, and in some cases, speciiic milestones For example, a business plan for FORCECOM documents the commands primary mission and goals, and outlines potential metries for evaluating effectiveness.” Sinilarly, strategie plan for the Command, Control, Communication, Computers, and Information Technology

component identifies key goals and objectives, as well as milestones and applicable performance indicators for fiscal year 2009.” While we did not evaluate the specific content ofthese plans, they generally include a description of the mission and core

‘values for the organizational element, as well as goals and objectives with which to assess progress as these elements continue to mare.”

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Furthermore, the Coast Guard also has more detailed implementation plans i

that address targeted issue areas encompassed within the modernization program Specifically, the Coast Guard has developed plans related to acquisition and financial management reforms, which DAS's Office of Inspector General and we have assessed

in greater depth

+ Acquisition reforms To address acquisition-related challenges, including those identified by our prior work, the Coasl Guard developed the Blueprint for Acpisition Reform Blueprint) Since July 2007, the Blueprint has served as the Capstone strategie document for reshaping acquisition and coutracting

capabilites under the newly established Acquisition Dizeetorate Curgently in its third version, the Blueprint is planned to be updated anmmully and is to undergo a comprehensive review and revalidation in ode-numbered years.” Contained

within the Blueprint are specific objectives and milestones for the upeoning year,

as well as detailed action itenss addressing the four sulycomponents ofthe reform plan: organizational alignment and leadership, policies and processes, human capital, and information management and stewardship Our recent work has assessed Coast Guard acquisition efforts included within the Blueprint.”

+ Financial management reforms, To address financial management deficiencies, the Coast Guard developed the Financial Strategy for Transformation and Audit Readiness (Version 2)” To implement this overal strategy, the Coast Guard developed 17 Mission Action Plans to address individual weaknesses identified within the service's financial management system.” Aecording to Coast Guard officials, some of the Mission Action Plans correspond to individal line tems and others address more general processes and information systems

Collectively, the 17 Mission Action Plans represent 2 combination of efforts that can be addressed either in the near tem (by the end of fiscal year 2010) or will, require long-term systemic changes Officials noted that the Financial Sores for Transformation and Audit Rendiness and Une underlying Mission Action

‘Plans will continue to be revisited on a anal basis.”

‘The Coast eakaesecs in intra cars ones Gall Gan development of Mission Acton Plans spat of lange font hy DS to adres reper Bening 2005, DMS net 9

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Ina supplemental effort intended to evaluate aspects of the modernization program and identify potential improvements, the Coast Guard engaged NAPA to conduct a third-party, independent review of the Coast Guard's overall realignment and

riodemization program According to NAPA, this study—which formally began in April 2008 and was completed in April 2009—-consisted of two primary research objectives"

+ Review of modernization program Under this objective, NAPA assessed the Coast Guard's modernization efforts to determine how they will fanetion to bridge the gap between the current state and the desired funure slate of the organization, the extent to which the organizational structure aligns with the Coramandant’s

‘operational vision, and the progress to date toward implementation NAPA

‘worked with the Coast Guard leadership team and NAPA panel members to

Identify the strengths, weaknesses, opportunities, and risks involved in the

current modernization approach and make recommendations for improvements

nd suggest mitigation steps for key risks identified

+ Financial management and resource planning analysis To address this objective, NAPA advised and assisted Const Guard leadership in undertaking an analysis of financial management and resource planning functions based on data

nd knowledge of best practices According to NAPA, this work included a review

lf the functions of the Coast Guard's Chief Financial Officer to evaluate the

potential impacts of financial management reforms on the averall modernization progam,

[NAPA completed its review and provided two fal reports tothe Coast Guard on April 30, 2009—one report addressing the service’s overall modernization efforts and another report addressing financial management.” Regarding overall modernization efforts, NAPA recognized thatthe Coast Guard's planed organizational realignment

“makes logical sense" and that the Service's leadership “s collectively engaged to Improve mission execution and support related business processes NAPA cautioned, however, that the Coast Guan! remains in the early stages of its organizational transformation, and that “materially enhanced efforts in strategic communications, entexprise-wide malysis and performance measurement, change management, and financial management will be needed to ensure that ultimate outcomes are achieved and sustained.” As a framework for analysis, the NAPA study team identified efght key success indicators, which the study team determined reflected common best

Acconting ta NAMA officials, he acain's work encompassed 4 brad seope an inched over 150

interiows eth wate sets of Cat Gra iil nein cans and malar persone ae

National Acaety of Public Aniston, (1 Const Guard Modernisation Sbudy (Washington, b,c Apel 20m avd Netonal Aceden af Public Ams mn Guard ederdeelim— Pinan Troejormntion Stody (Wastington D.C, Ap 200), One veview fs ema on he fine reports which kee ths exvtall merization pram

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practices for organizational transformation.” As a result ofits review, NAPA made {our conchiding recommendations intended vo help mitigate potential implementation risks and facilitate a successful maclernization process, Specifically, NAPA recommended that the Coast Guard

‘+ establish.a Moderization Implementation Guidance Team before the expiration of the Strategic Transformation Teara chatter,

‘© develop a clear quantifiable business ease for modernization, measurement tools and a process of metrics assessment to track modemization progress and the

effects on mission execution;

+ conduct an assessment of the service's communications processes in an effort to Detter realign the communications functions and their accountabilities; and

‘© Duild and expand imovation capacities for continuous improvement, employee ‘ownership, and best practices,

As NAPA's second recommendation highlights, one ofthe key challenges faced by the Coast Guard is the development of adequate measures to assess the progress and

‘outcomes of the modernization program As the NAPA report indicated, such

:meastires are important to ensure that the impacts of modemization are aligned with intended objectives; also, such measures provide an opportunity to "course-comrect’ asnecessary NAPA further noted that the development of appropriate measurement {ools will help to provide quantifiable support for the modernization business case and facilitate stakeholder bay in,

According o the Coast Guard, several efforts are currently under way to develop and Uutlize performance metsies to assess the results of the modernization program

According to officials, the strategic intent of the modernization program is to enhance the overall performance of the service, In this respect, affcils noted that the 25, primary performance measures currently used to report on Coast Guard mission 'QAD 48.680 was one ofthe pin

siseseelnliedtom ssc thatthe NAPA study eum sd oie the ay

*-The Coast Gunns Stee Transformation Tesin—whos

‘bromo nl tetera cine masta ment and perforce manaerent The teport noted, however that RAPA dh no evalate whether therscommenation ranting establiment of « Mosternizationinpementation Cenc Team the ne directorate meets al aspect of

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performance are to remain the principal indicators (o ensure that modemization does not adversely alfect the delivery of services to the American public.” However,

officials acknowledged that it will likely be dificult to directly evaluate the

effectiveness of the modernization program using these high-level mission

performance indicators For this reason, Coast Guard officials are planning to adapt

Or utilize an alternate set of existing business metrics to assess the impacts of the modertization program The Coast Guard reported that over 1,000 mets ae

cumently available to evaluate various aspects of the service's operations and

business processes.”

While the Coast Guard is currently taking steps to further identify and develop

applicable performance metres, this effort remains in the early stages According to the Coast Guard, identification and development of applicable business metrics will take place in (wo steps The frst step includes identification of key intemal activities and outputs required 1o enable mission execution within the realigned organizational structure The Coast Guard reported that this step was under way in February 2009 and is scheduled for completion during the sununer of 2009 Once this framework of keey activities and outputs is established, the Coast Guard plans to identify the

specific business metrics available that retate to these core services ancl products However, Coast Guard officials were unable to provide a specific time frame for the estimated completion of this secondary step According to the Coast Guard, once applicable motrics are identified and adequate data are colleeted—in approximately 6

‘months to 1 year—these metzies will enable evaluation of the perfomance and effectiveness of the modemizett Coast Guard processes and facilitate continued improvements

As outlined in the Gavemnment Performance and Results Act of 1003" and Standards {for Internal Control in the Federal Government,” performance measures are

‘important to reinforce the connection between long,term strategic goals and the day to-day activities of naanagement and staff Moreover, the Coss Guard noted that the proposed organizational constmiet—based on the finetional components of poliey

nd resources, support, readiness, and mission execution represents a substantial change from the service's exiting business practices, For this reason, the Coast Guard's efforts to develop adequate performance metries to help validate existing organizational designs and processes and make adjustments as needed issn

important step According to officials, they plan fo include a range of indieators that represent multiple goals and priorities, such as quantity, timeliness, cost, and

Improvement Exist, GAO G15 (Washinton, DAC! Ava 15, 2000)

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nh, No, 1868, 197 Sa, 286 Ca,

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Trang 14

‘outcomes, consistent with our prior work." Such action would help ensure that the Coast Guard's overall measurement of performance does not become biased by metrics that assess some priorities but neglect others

Agency Comments and Our Evaluation

(On May 4, 2000, we provided draft of this report for review and comment to DHS and the Coast Guard On May 19,2009, the departments audit liaison office

responded by e-mail that the Coast Guard, after reviewing the report on behalf of DIS, provided no formal commenis but offered one technical clarification We

incorporated the technical clarification into this report where appropriate

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Enelosure 1

Overview of the Coast Guard's Modernization Report (August 2008) Submitted to the Senate and House Appropriations Committees Daring the summer of 2006, the Commandant of the U8 Coast Guard issued 10 CCommanclant Intent Action Orders intended to address elements of the Coast Guard's ccomnsand snd control structure, mission support system, and business processes that were identified as detracting from mission execution In August 2008, the Coast Guard reported to the Senate and House Appropriations Commultiees that the 10 action orders have been “combined into five coordinated efforis that comprise Coast Guard Mocemnization,"* Table 2 shows the relationship between the 10/action orders and the five efforts that make up the Coast Guard's modemization program

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As table 2 indicates, the modemization program largely focuses on establishing four

‘new organizational entities—two headquarters entities (DCMS and DCO) and two field-based commands (OPCOM and FORCECOM), Unđer the modernization, program, the Coast Guard Vice Commandant isto assume responsibility for

‘verseeing the new organizational entities (see fig 2)

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