The Congressional Research Service has again updated their “Report to Congress on Coast Guard Cutter Procurement”. (This link will always take you to the most recent edition of the report.) My last post on this evolving document was in reference to a 17 August, 2021 update. I have reproduced the one page summary in full below. But first,
I missed this addition in my last look at the report. From page 22/23:
August 2021 House Committee Request for GAO Review
In a letter dated August 16, 2021, the House Transportation and Infrastructure Committee requested GAO to review the management of the OPC program and the Coast Guard’s efforts for managing its existing medium endurance cutters. The letter stated:
Initially projected to cost about $12 billion over its 30-year life cycle, the [OPC] program recently experienced significant cost and schedule delays….
In addition to construction of the OPC, the Committee continues to remain concerned about the operational gap between the end of service life for the aging Medium Endurance Cutters and the delayed delivery of the OPCs….
Given the significant budgetary commitment that the Congress, DHS, and Coast Guard have made for the OPC program to date, continued oversight is necessary to ensure the OPC program does not continue to experience cost growth or additional schedule delays. As such, the Committee requests that the Government Accountability Office (GAO) review the management of the OPC and Medium Endurance Cutters acquisition programs including, but not limited to:
- The status of the Phase 1 (the first four hulls) and Phase 2 (hulls 5 through 25) OPC acquisition programs, including what steps are being taken to manage the program within the revised cost and schedule commitments; and
- The status of the Medium Endurance Cutters and level of maintenance needed to keep the fleet operating to minimize the operational gap until the OPCs are incrementally delivered.
This is new. From page 27:
FY2022 National Defense Authorization Act (H.R. 4350) House
The House Armed Services Committee’s report (H.Rept. 117-118 of September 10, 2021) on H.R. 4350 states:
Sentinel-class Fast Response Cutter
The committee looks forward to reviewing the Navy’s updated force structure assessment and shipbuilding plan. The committee understands the Navy intends to change the fleet architecture reflected in the 355-ship force-level goal to reflect a more distributed fleet mix with a smaller proportion of larger ships and a larger proportion of smaller manned ships as well as unmanned vessels. The committee supports incorporating a mix of smaller manned ships into the fleet and encourages the Navy to consider the capabilities the U.S. Coast Guard’s Sentinel-class Fast Response Cutter could provide to the fleet and the concept of operations and associated requirements that would support acquisition of these vessels.
Further, the committee is aware the U.S. Coast Guard has contract options for 12 additional Sentinel-class Fast Response Cutters with firm fixed pricing in place until May of 2023. Exercising these contract options in advance of their expiration would lock in favorable pricing on Sentinel-class Fast Response Cutters should the Navy determine that they add value to the fleet.
Given the successes of the U.S. Coast Guard’s Sentinel-class Fast Response Cutter in support of the Navy’s Fifth Fleet as a part of Patrol Forces Southwest Asia, the committee believes there are similar roles for Sentinel-class Fast Response Cutters in other areas of responsibility. Therefore, the committee directs the Secretary of the Navy to submit a report to the congressional defense committees not later than February 1, 2022, that details the current mission sets and operating requirements for the Sentinel-class Fast Response Cutter and expands on how successes in the U.S. Central Command area of responsibility would translate to other regions, including the U.S. Indo-Pacific Command. Further, the committee directs the Secretary of the Navy to assess the requisite upgrades to the Sentinel class Fast Response Cutter required to meet Navy standards and evaluate the concept of operations for employing these vessels in Southeast Asia. This report should be unclassified but may include a classified annex. (Page 21)
The Summary page is reproduced below:
The Coast Guard’s program of record (POR), which dates to 2004, calls for procuring 8 National Security Cutters (NSCs), 25 Offshore Patrol Cutters (OPCs), and 58 Fast Response Cutters (FRCs) as replacements for 90 aging Coast Guard high-endurance cutters, medium-endurance cutters, and patrol craft. The Coast Guard’s proposed FY2022 budget requests a total of $695.0 million in procurement funding for the NSC, OPC, and FRC programs, including $597 million for the OPC program.
NSCs are the Coast Guard’s largest and most capable general-purpose cutters; they are replacing the Coast Guard’s 12 Hamilton-class high-endurance cutters. NSCs have an estimated average procurement cost of about $670 million per ship. Although the Coast Guard’s POR calls for procuring 8 NSCs to replace the 12 Hamilton-class cutters, Congress through FY2021 has fully funded 11 NSCs, including the 10th and 11th in FY2018. In FY2020, Congress provided $100.5 million for procurement of long lead time materials (LLTM) for a 12th NSC, so as to preserve the option of procuring a 12th NSC while the Coast Guard evaluates its future needs. The Coast Guard’s proposed FY2022 budget requests $78.0million in procurement funding for activities within the NSC program; this request does not include further funding for a 12th NSC. The Coast
Guard’s proposed FY2022 budget also proposes rescinding $65.0 million of the $100.5 million in FY2020 funding for LLTM for a 12th NSC, “allowing the Coast Guard to focus investments on building, homeporting, and crewing Polar Security Cutters and Offshore Patrol Cutters.” The remaining $35.5 million appropriated in FY2020 for LLTM would be used to pay NSC program costs other than procuring LLTM for a 12th NSC. Nine NSCs have entered service; the ninth was commissioned into service on March 19, 2021.
OPCs are to be less expensive and in some respects less capable than NSCs; they are intended to replace the Coast Guard’s 29 aged medium-endurance cutters. Coast Guard officials describe the OPC and PSC programs as the service’s highest acquisition priorities. OPCs have an estimated average procurement cost of about $411 million per ship. The first OPC was funded in FY2018. The Coast Guard’s proposed FY2022 budget requests $597.0 million in procurement funding for the fourth OPC, LLTM for the fifth, and other program costs. On October 11, 2019, the Department of Homeland Security (DHS), of which the Coast Guard is a part, announced that DHS had granted extraordinary contractual relief to Eastern Shipbuilding Group (ESG) of
Panama City, FL, the builder of the first four OPCs, under P.L. 85-804 as amended (50 U.S.C. 1431-1435), a law that authorizes certain federal agencies to provide certain types of extraordinary relief to contractors who are encountering difficulties in the performance of federal contracts or subcontracts relating to national defense. The Coast Guard is holding a full and open competition for a new contract to build OPCs 5 through 15. On January 29, 2021, the Coast Guard released a Request for Proposals (RFP) for this Stage 2 contract, as it is called. Responses to the RFP were due by May 28, 2021. The Coast Guard plans to award the Stage 2 contract in the second quarter of FY2022.
FRCs are considerably smaller and less expensive than OPCs; they are intended to replace the Coast Guard’s 49 aging Island-class patrol boats. FRCs have an estimated average procurement cost of about $65 million per boat. A total of 64 have been funded through FY2021, including four in FY2021. Six of the 64 are to be used by the Coast Guard in the Persian Gulf and are not counted against the 58-ship POR quantity for the program, which relates to domestic operations. Forty-four of the 64 have been commissioned into service. The Coast Guard’s proposed FY2022 budget requests $20.0 million in procurement funding for the FRC program; this request does not include funding for any additional FRCs
I guess the question is, what is the fixed price on those final 12 FRC options? Feels like an easy PC replacement option.
If the CG has contract options for 12 additional FRC (I assuming this is above the 64 planned units) than for God’s Sake fund and build them for the CG! Keep that hot production line going.
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