WASHINGTON - The Coast Guard's chief told lawmakers Tuesday it will take up to a year to take over management of its much-criticized $24 billion fleet modernization.

At a hearing held by the House subcommittee on Coast Guard and maritime transportation, a government investigator said the Coast Guard's planned timetable is too fast.

The Coast Guard said in April it would assume management of a contract awarded in 2002 to a joint venture of Lockheed Martin Corp. and Northrop Grumman Corp. after probes found cost overruns, design flaws and lax contract oversight.

On Tuesday, Coast Guard Commandant Adm. Thad Allen said between six and 12 months are needed for the agency to take over managing the contract, dubbed Deepwater, which the joint venture has overseen seen the deal was awarded.

Richard Skinner, inspector general for the Department of Homeland Security, urged Allen to take it slower since a Coast Guard internal reorganization won't be complete until 2010.

"There is considerable risk with the Coast Guard assuming the (lead role) at this time," Skinner said, adding that it will take up to three years for the agency to be ready, citing staffing and cultural issues.

The Deepwater program management office employs 450 workers compared with 250 just five years ago, Allen said. There are plans to hire 50 more, with the total staff split evenly between civilian, military and contract staff.

Earlier this month, the Coast Guard said it plans to extend the Deepwater contract 43 months at a cost of $3 billion. But task orders will be limited to 18-month deadlines to avoid past delays.

Skinner praised the plan, saying it gives the Coast Guard an "exit strategy" if it does not like where projects are headed.

The Democrats' fiscal 2008 spending plan would withhold $400 million of Deepwater funding until the Coast Guard submits a detailed management expenditure plan.

The Coast Guard last month demanded a refund from Lockheed and Northrop for eight 123-foot patrol boats they jointly built. Structural problems forced the ships to be removed from waters off Florida late last year and permanently decommissioned in April, the Coast Guard said.

Allen said the Coast Guard is tallying the amount of damages it will seek, although the agency has estimated it lost up to $60 million. Margaret Mitchell-Jones, a spokeswoman for the joint venture, on Tuesday said it will respond in detail to the agency's request by June 29.

Lockheed spokesman Troy Scully said the company is responsible for the aviation, command and control and logistics elements of Deepwater, not shipbuilding, so "we anticipate no financial impact" from the refund request.

In April, the joint venture disclosed that the Justice Department was investigating Deepwater and warned Lockheed, Northrop and other contractors not to destroy documents related to the project.

The companies are cooperating with the investigation and Mitchell-Jones said although there has no been no additional contact with Justice since being notified of the probe in December.