The Acquisitions Directorate (CG-9) reports the exercise of a contract with Bollinger for construction of six more Webber class WPCs (Fast Response Cutters or FRCs).
The Coast Guard exercised a contract option for production of six more Sentinel-class FRCs and associated deliverables worth just over $297.4 million with Bollinger Shipyards of Lockport, Louisiana, July 31.
This option brings the total number of FRCs under contract with Bollinger to 56 and the total value of the contract to approximately $1.23 billion. The contract has a potential value of $1.42 billion if options to procure all 58 cutters are exercised. The FRCs built under this option will be delivered beginning late 2022 into late 2023. To date, there are 33 FRCs in operational service.
Things to note.
- The $1.23B referred to did not pay for all 56 vessels, only those purchased under the most recent contract.
- Buying in quantity lowers the price. Since this is a long running contract and we have ordered the maximum number Bollinger can build in a year, increasing efficiencies have lowered the per ship price from over $60M to less than $50M.
- While this program will likely continue to deliver vessels through at least 2024, we are nearing the end of this program, at least in terms of contracting. FY2020 may be the last year that will include money for WPC new construction, if it includes funding for six more vessels and 64 is final number constructed. This would include 58 in the program of record and six to replace the six WPBs in PATFORSWA (four of which have already been funded).