The FY2012 AC&I Budget Request for Vessels

The FY 2012 budget for “vessels” is a year without major funding for the National Security Cutter (NSC) project. It only includes $77M to finish funding the fifth ship. Consequently, even though vessel funding dropped from $851.7M in the FY2011 request to only $642M, we see the start of a program to update 140-foot WTGBs, 225-foot WLBs and 175- foot WLMs, beginning with the oldest WTGB and funding of five Mission Effectiveness Projects (MEP) for 270 foot WMECs. We also see an acceleration of the Response Boat-Medium and Fast Response Cutter Programs.

But of course the plan has been to complete the NSC program before starting the OPC program and having the first OPC delivered in 2019. I don’t see how this can happen without a major bump in AC&I funding or at least a major diversion from other areas. The funding for the first five NSCs was spread over eleven years. In the last ten budgets, from FY 2003-2012, NSC funding has averaged $312M. Only in FY 2011 did funding for the program approach the full cost of an NSC ($615M requested compared to a projected cost of $697M for NSC#5), that year, there was no funding for the Fast Response Cutter Program. The Coast Guard is unlikely to get $1.2B it needs in FY 2013/14/15 to complete the “In Service Vessel Sustainment” and WMEC Mission Effectiveness Projects and each year build:

  • one NSC (approx. $700M)
  • six FRC (approx. $350M)
  • 40 Response Boat-Medium (approx $100M)

Short of canceling one or more of the NSCs (my preferred alternative), the only way to deliver an OPC by 2019 is to build the NSCs and OPCs in parallel.

The total FY 2012 AC&I budget request looks like this:

  • Vessels – $642.0 million
  • Aircraft – $289.9 million
  • Other – $166.1 million
  • Shore and ATON – $193.7 million
  • Military Housing – $20.0 million
  • Personnel and Management – $110.2 million

The breakdown for “vessels” (cutters, small boats and related equipment) looks like this:

  • Survey and Design – Vessels and Boats …….$6M
  • In Service Vessel Sustainment (ISVS) …….$14M
  • Response Boat – Medium (RB-M) …………$110M
  • National Security Cutter (NSC) ………………$77M
  • Offshore Patrol Cutter (OPC) …………………$25M
  • Fast Response Cutter (FRC) …………………$358M
  • Cutter Boats …………………………………………..$5M
  • Medium Endurance Cutter Sustainment …$47M
  • Subtotal – Vessels…………….……………..……$642M

Here is a bit more detail. Quotes are from the DHS 2012 budget justification (this is a large pdf) which was the source for this post.

Survey and Design – Vessels and Boats $6M: “The FY 2012 funding will complete survey and design work for the 140-foot Icebreaking Tugs (WTGBs) as well as initiate this work for the 225-foot Sea-Going Buoy Tenders (WLBs) and the 175- foot Coastal Buoy Tenders (WLMs).”

In Service Vessel Sustainment (ISVS) $14M: “This request initiates a permanent acquisition program for sustainment of aging vessels to include Mission Effectiveness Projects (MEP) and Service Life Extension Projects (SLEP). Specifically funded in FY 2012 is a SLEP on the first 140’ Ice Breaking Tug (WTGB).”

Response Boat – Medium (RB-M) $110M: Funds 40 more of these 45 foot boats. The project is now in full production, delivering at least 30 boats a year. 69 boats are expected to have been delivered by the end of FY2011. A total of 180 boats are expected to be delivered or on order through FY2014. The total breaks down like this.

Funding Requirement Description ………..Cost Estimate ($1,000)
RB-Ms (40)  ……………………………………………………………….77,237
OT&E identified full production modifications  ………………5,000
Logistics element development and fielding  …………………..6,224
Curriculum/training aide development  …………………………6,825
Project Management (Government)  ……………………………..8,277
Project Management (Contractor)  ………………………………..6,258
Test and Evaluation  ………………………………………………………..179

FY 2012 Cost Estimate Project Total: …………………………..110,000

National Security Cutter (NSC) $77M: The funding history for this project was the subject of a previous post. The real news here is that the budget did not contain funds for NSC#6. Fully funding one NSC would have consumed the entire “Vessels” portion of this year’s AC&I Budget, and we still have three ship of the class yet to fund. (See comments in the introduction.)

Offshore Patrol Cutter (OPC) $25M: “This funding will continue pre-acquisition design work for the Offshore Patrol Cutter (OPC) class, intended to replace the Coast Guard’s fleet of Medium Endurance Cutters (WMEC). The acquisition strategy for this program awards multiple Preliminary & Contract Designs (P&CDs) to competing contractors. From the P&CD efforts, one design will be chosen for detailed design development. FY2012 funding will facilitate P&CD evaluations, preparing the Request for Proposal (RFP) for the Detailed Design and Construction contract award, OPC Project Office technical and project support, OPC Ship Design Team support, completing various trade-off studies and requirements validations, life-cycle cost estimating support, logistics, and training studies.”

FUNDING HISTORY

  • FY …………$K …….Major Activity Funded by Net Appropriation
  • 2004 …$15,558 …Preliminary Alternative and Requirement Development
  • 2005 …..$1,788 …Requirement and Concept Refinement
  • 2006 ..$10,039 …Continuing Design Development
  • 2009 ….$3,003 …Requirements Analysis, Initial Concept/Preliminary Design
  • 2010 ….$9,800 …Milestone 2 Preparation & Completion; P&CD RFP preparation
  • Total ..$40,188 …Funding received for FY 2004 through FY 2010

Apparently no funds were appropriated in FY2011.

Fast Response Cutter (FRC) $358M: “This request funds production of six FRC hulls, associated contract line items, and project management costs. Procuring six FRCs maximizes the production line and generates a cost savings of nearly $5 million per hull. In addition to production of six FRCs, this funding also procures the Reprocurement Data and Licensing Package (RDLP) required for the Coast Guard to re-compete the FRC production contract in order to maximize cost efficiencies. Continued acquisition of FRCs is critical to replace the aging 110’ patrol boat fleet.”

With this 6 vessel buy, 14 FRCs will have been funded, out of 58 planned. Since six cutters/year “maximizes the production line” we might expect the remaining 44 vessels to be funded at six a year through FY 2019 with the final two in FY2020.

FUNDING HISTORY

  • FY ……………………$K …….Major Activity Funded by Net Appropriation
  • 2007 & Prior ..$152,249 ..Base contract option (lead + design & associated Contract Line Item #s (CLINs)
  • 2009 ……………$115,300 ..Option period #1 (hulls 2-4) plus associated CLINs
  • 2010 …………..$243,000 ..Option period #2 (hulls 5-8) plus associated CLINs
  • Total …………..$510,549 ..Funding received for FY 2004 through FY 2010

Apparently no funds were appropriated in FY2011.

Cutter Boats $5M: “This request continues funding for production of multi-mission cutter small boats that will be fielded on the Coast Guard’s newly acquired National Security Cutter. This request funds production of two Cutter Boat Long Range Interceptor Mark II (CB-LRI Mark II), hulls #1&2, and four Cutter Boats Over-the- Horizon Mark IV (CB-OTH Mark IV), hulls #6-9, along with project and technical support.

Medium Endurance Cutter Sustainment $47M: “This request funds Mission Effectiveness Projects (MEP) on five 270’ WMECs. Three of these MEPs will be completed in FY 2012 with the remaining two completed the following year. This work includes replacement of major equipment and systems that are the primary source of degraded operational readiness, such as the main propulsion control and monitoring system, small boat davits, oily water separators, air conditioning, refrigeration, and evaporators. This work will be performed at the Coast Guard Yard in Curtis Bay, MD. The MEP project includes both the 210’ and 270’ WMECs. The last 210’ WMEC MEP was completed in FY 2010, leaving work on 270’ WMECs as the focus for the remainder of this project.”

5 thoughts on “The FY2012 AC&I Budget Request for Vessels

  1. Of course I agreed with the overall reasoning. The Cost just seems to be hurting us else where. But the 378’s need to go they patrol such dangerous waterways.

  2. Pingback: FY2013 AC&I Budget Request - CGBlog.org

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