Reporting on remarks by Rear Adm. Nathan Moore, assistant commandant for engineering and logistics, at the WEST 2020 conference the US Naval Institute News Service reports that the Coast Guard is having difficulties getting its ships into commercial shipyards because of limited capacity in the industry and the increased use of smaller yards by the US Navy. The limited capacity also means that there may be no competition, so the cost of availabilities is going up.
He said the lack of competition is driving up the costs of the contracts they can award, and is leaving others without any interested bidders at all.
The Coast Guard is looking at increasing coordination with the Navy.
“Moore said the Coast Guard has been working with the Navy and industry to squeeze in Coast Guard ships as “filler work between Navy projects” with some success, but he’s hoping to see a more coordinated effort.”
The Navy sees there may be benefits for them in better coordination with the Coast Guard.
“During the same panel discussion, Naval Sea Systems Command (NAVSEA) Commander Vice Adm. Tom Moore said that coordination could help the Navy too – which has been struggling with its industrial base to achieve on-time and on-budget maintenance availabilities.”
“’The old way that we’ve done it of being very restrictive on dates in and out of the shipyards is not working well for us in terms of not getting competition. So I think to get competition, we have to sort of change the way we do business.’”