National security whistleblower Michael De Kort, who made waves last month when he posted a 10 minute video on YouTube detailing security problems with the U.S. Coast Guard’s Deepwater program to rehabilitate older ships, has posted a second video providing updates and further information on the investigation into the disclosures he made.

First off, I must admit that I passed on this story at first, partly due to lack of time, and partly because it looked at first like yet another defense contractor screwing up, which regrettably is nothing new. But the more I looked into this story, the more I’ve become deeply concerned about the allegations raised.

“What I’m going to tell you is going to seem preposterous and unbelievable,” De Kort says at the beginning of his video, “and may be very hard for you to believe that our government and the largest defense contractor in the world is capable of such alarming incompetence.” Hm, I don’t find that hard to believe at all.

Watch for yourself.

De Kort details several security flaws with video surveillance systems being installed on Coast Guard ships, as well as problems with communications equipment installation that could allow people to eavesdrop on secure communications.

He said he followed the chain upward through Lockheed Martin and was discouraged at every step of the way, finally being retaliated against by being transferred off the project, and being laid off just days after the video was released.

De Kort then contacted the Department of Homeland Security and his Congressional representative, and that the Homeland Security inspector general said his claims “have merit” and that they are being stonewalled by the Coast Guard. He had also contacted the press months ago, but the press rebuffed him, he told Media Daily News, at least until he posted his YouTube video.

Representatives from both the Associated Press and The Washington Post confirm that De Kort contacted the outlets’ reporters months prior to videotaping his claims for YouTube. “We needed to get documentation from the government, and we haven’t yet,” says Michael Silverman, managing editor for the AP in New York. “This is a story we continue to pursue.” — Media Daily News

De Kort’s video update, released Saturday, gives further details on the security problems, and cites a Homeland Security inspector general’s report released September 1 regarding the Deepwater program. That report found that numerous problems exist in the contractor’s performance.

Watch Michael De Kort’s September 16 update.

Certification and accreditation of Deepwater C4ISR equipment has been difficult to achieve, placing systems security and operations at risk. Further, although the Deepwater program has established IT testing procedures, the contractor has not followed them consistently to ensure that C4ISR systems and the assets on which they are installed perform effectively. . . .

Due to limited oversight as well as unclear contract requirements, the agency cannot ensure that the contractor is making the best decisions toward accomplishing Deepwater IT goals. — Improvements Needed in the U.S. Coast Guard’s Acquisition and Implementaion of Deepwater Information Technology Systems (PDF)

The report cites difficulties the contractor has had in certifying the ships’ secure communications equipment and getting authorization to operate. De Kort said in his video update that “The testers falsified their test results in order to get the system to pass. This puts the nation’s entire secure communications system at risk.”

Despite this partial confirmation and the ongoing investigation, Lockheed says that De Kort’s accusations are baseless and launched an ad hominem attack on him in the press.

“We’ve been aware of [De Kort's] concerns for some time,” said Mary Elder, spokeswoman for the program. “In each case we’ve reviewed them and taken the appropriate level of action. The Coast Guard takes seriously any concerns related to safety and national security.”

Margaret Mitchell-Jones, spokeswoman for the consortium between Lockheed Martin and Northrop Grumman that runs Deepwater, said Lockheed Martin had investigated and “found the accusations to be without merit.”

“Anybody with a webcam and something to say, regardless of whether it’s true or not, can say it on YouTube,” she said, adding that the company would not ask the site to take the video down. — Washington Post

This isn’t the first time that De Kort raised issue with Lockheed Martin’s handling of defense contracts. Military.com reports that he confronted managers about intentional overbilling for parts in other programs, and that the ultimate problem at Lockheed Martin is a lack of effective leadership.

DeKort had been with the company for 12 years, working on a number of different projects including training simulations, the Aegis radar system and an upgraded command center. “The only project I worked on that didn’t have serious ethics issues was Aegis.”

On the $500-million simulations project, DeKort says he was encouraged by a manager to use video switches that cost $400,000 apiece instead of switches that did the same job for a tenth the cost. That same manager eventually left Lockheed Martin to work for MediaTech, the company that manufactured the more expensive switches. — Military.com

Lockheed Martin stands by its ethics, a spokesperson said.

You can be sure I’ll be following this story much more closely.