Category Archives: Budget

“Trump Bill Secures $9 Billion for U.S. Arctic Surge, Six New Icebreakers to Counter Russian and Chinese Dominance” –gCaptain

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gCaptain reports,

“President Trump’s vast tax and spending bill has secured funds the U.S. Coast Guard has been searching for since the early 2010s. The “One Big Beautiful Bill Act” appropriates close to $9 billion for the expansion of the Coast Guard’s Arctic icebreaker fleet.”

The report provides a breakdown of the appropriations that includes money for Polar Security Cutters, Arctic Security Cutters, and infrastructure in Juneau to support USCGC Storis,

Interestingly it also states,

“Rounding out the Arctic package, the U.S. Navy will also receive $115 million for the exploration and development of existing Polar infrastructure.”

That sounds like improvements in Adak that the Coast Guard might also exploit. It might also refer to development of facilities at Nome but it is not nearly enough to fund plans for a deepwater port that had been shelved by the previous administration.

This rendering provided by the City of Nome shows how the Port of Nome, Alaska, will appear following an expansion project that will cost more than $600 million. Shipping lanes that were once clogged with ice for much of the year along Alaska’s western and northern coasts have relented thanks to global warming, and the nation’s first deep water Arctic port should be operational in Nome by the end of the decade. (PND Engineers Inc./City of Nome via AP)

“Reconciliation Bill Calls for $14.6B in Coast Guard Cutters, New Arctic Icebreakers”–USNI / Not Exactly

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US Capital West Side, by Martin Falbisoner

U.S. Naval Institute News Service reports,

The Coast Guard could see $14.6 billion in new cutters as part of a massive supplemental that could almost double the service’s Fiscal Year 2025 budget, according to the text of the reconciliation bill reviewed by USNI News.

Included in the Republican-led funding proposal is money for almost 30 new cutters ranging in size from the 154-foot Sentinel-class Fast Response Cutter to the 460-foot Polar Security Cutter, according to a source familiar with the proposed buy.

Those include:

  • Three or more Arctic Security Cutters and an unspecified number of Great Lakes icebreakers for $5.03 billion.
  • Two Polar Security Cutters and advanced procurement for $4.3 billion.
  • Eight Heritage-class Offshore Patrol Cutters for $4.3 billion.
  • Up to 15 Sentinel-class Fast Response Cutters for $1 billion.

It also includes a lot more, but first, recognize that this is not a single fiscal year appropriation. In fact it is not an appropriation at all. You can read the actual text of the bill here.

“For the purpose of the acquisition, sustainment, improvement, and operation of United States Coast Guard assets, in addition to amounts otherwise made available, there is appropriated to the Commandant of the Coast Guard for fiscal year 2025, out of any money in the Treasury not otherwise appropriated, to remain available until September 30, 2029…”

That is a conditional statement.

If the money is available, you can spend it on these things. (I think the idea may have been that cancelling programs would save huge amounts of money in the FY2025 budget, that could be redirected. It now appears the initial estimates were wildly optimistic.)

The bill provides a long list of things money could be spent on, totaling $14.6B according to the USNI report. It does not directly fund them. It allows any FY2025 money not otherwise committed, to be moved into a pool the Coast Guard can draw on for the next four years.

The Coast Guard is not the only agency that can draw on “any money in the Treasury not otherwise appropriated,” This bill “appropriates” $15B for the FAA and about $257M to the Kennedy center under the same conditions. There is also nearly identical wording in the Defense Reconciliation bill but for much larger sums.

The bill is only 22 short double spaced pages. Only the first seven pages deal with Coast Guard acquisitions. (Nowhere in the bill is there a specific number of cutters as listed in the USNI article.)

Pages 8-11 deal with activation of CG Selected Reserve personnel.

On pages 11 and 12 there is imposition of vessel tonnage duties.

Pages 12-18 imposition of a Federal registration fee on motor vehicles.

Pages 18-20 would cancel some existing programs.

Pages 20-21 deals with the FAA.

This is more like an authorization than an appropriation.

While I doubt the Coast Guard will ever see $14.6B in redirected FY2025 funds, perhaps this will influence the budget process in future years. The priorities expressed here may allow the Coast Guard the option of redirecting money to new programs if we continue to have continuing resolutions rather than actual budgets.

“Canada, Finland tout different paths of ‘icebreaker diplomacy’ with US” –Defense News

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Coast Guard Cutter Healy (WAGB 20) and crew conduct formation steaming exercises with Candian Coast Guard Ship Sir Wilfrid Laurier and crew in the Beaufort Sea, July 28, 2023. The crew conducted a passenger exchange with the Sir Wilfrid Laurier off the coast of Utqiagvik, Alaska. (U.S. Coast Guard photo by Petty Officer 1st Class Michael Underwood)

Defense News reports,

Canadian and Finnish shipbuilders have made different offers to the United States for the production of icebreakers, which must weigh what it values more: speed or its sovereign shipyard industry.

It becomes a question of priorities with conflicting aims,

  • Get them fast?
  • Build in US yards to expand US shipbuilding capabilities?
  • Increase the USCG budget to pay for rapid acquisition?

It is unlikely, possibly impossible, the answer to all these questions will be yes.

“BOLLINGER SHIPYARDS SECURES $951 MILLION U.S. COAST GUARD CONTRACT MODIFICATION FOR POLAR SECURITY CUTTER PROGRAM” –Bollinger News Release

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Below is a news release from Bollinger Shipyards.

The expected cost of these ships has gone up considerably, but comparing the current cost of the program, $5.1B for three ships, to the recent Canadian contracts for a similar ship, it seems the initial estimates were never realistic.

Tuesday, March 25, 2025 – Bollinger Shipyards announced today it has received a $951.6 million Fixed-Price-Incentive-Firm Target (FPIF) contract modification from the United States Coast Guard, advancing the Detail Design and Construction phase of the Polar Security Cutter (PSC) Program. This milestone underscores Bollinger’s integral role in strengthening America’s maritime presence and operational capabilities in the Arctic.

“Securing this contract modification has truly been a herculean effort and underscores the incredible trust the U.S. Government has placed in Bollinger to build and deliver the first heavy polar icebreaker in half a century,” said Ben Bordelon, President and CEO of Bollinger Shipyards. “We wouldn’t be in the solid position we’re in today without the leadership and the tireless efforts of the entire team at Bollinger Mississippi Shipbuilding. Their hard work and dedication have successfully put the PSC program on a strong path forward after a rocky start under the previous, foreign-owned builder. We now look forward to receiving the green light to begin full production.”

Bordelon also expressed gratitude for the role of national and state leadership in moving this program forward.

“I am also grateful for the leadership of President Trump and his Administration in recognizing the urgent need for American-made icebreakers. Because of his foresight and commitment to rebuilding America’s shipbuilding capabilities, this historic project is now moving forward.”

Bordelon also acknowledged Mississippi’s leadership for championing the PSC Program and state as a dominant force in shipbuilding.

“I also want to thank Governor Reeves and Mississippi’s Congressional Delegation for their leadership and support, especially as we leverage ongoing state and local investments to ensure Bollinger Mississippi remains the premier example of American shipbuilding.”

“As the Arctic grows as an arena of great power competition, the United States will require far more icebreaking capability from the U.S. Coast Guard to defend our interests in the region. Today’s award is a testament to the good work that Bollinger continues to do on the Polar Security Cutter program and the growing urgency with which their platforms are needed to boost our national defense,” said U.S. Sen. Roger Wicker (R-MS), Chairman of the Senate Armed Services Committee. “The Mississippi Gulf Coast will not only benefit from even more national security-focused quality jobs and economic development, but it will also continue to be a national player and powerhouse in mission-critical innovation and military capability.”

“Mississippi continues to prove its status as the premier destination for American shipbuilding—driving both national defense and commercial maritime strength,” said U.S. Senator Cindy Hyde-Smith (R-MS). “This milestone not only reinforces the Gulf Coast’s strategic importance, but it also reflects the value of returning critical shipbuilding programs to experienced, American-owned hands. Under Bollinger Shipyards’ strong leadership and investment, a once-stalled program will move forward with renewed urgency. I fully support this effort, which brings more high-quality jobs to Mississippi and ensures the Coast Guard is able to meet the growing challenges in the Arctic and beyond.”

Bollinger’s continued investment and growth on the Mississippi Gulf Coast reflect the skills, strength and talent of Mississippi’s workforce,” said Mississippi Governor Tate Reeves. “This announcement reinforces Mississippi’s pivotal role in American shipbuilding and solidifies Mississippi’s reputation as a national leader in maritime innovation and excellence.”

“Bollinger Mississippi Shipyards has a strong track record in American shipbuilding, and their role in the Polar Security Cutter program is another important step. This historic milestone strengthens national security, supports the domestic shipbuilding workforce, and enhances our Arctic presence. Ensuring the U.S. Coast Guard has the tools it needs is critical, and I look forward to seeing this project move forward,” said U.S. Rep. Mike Ezell (R-MS-04).

As Bollinger continues to enhance its operations in Mississippi into world-class shipyards, the company remains committed to making strategic investments to modernize and expand its capabilities. Additionally, the contract modification ensures Bollinger continues to provide its workforce with industry-leading wages throughout the life of the PSC program. Since acquiring foreign-owned VT Halter in November 2022, Bollinger has made a significant economic impact in the state through targeted investments and workforce expansion. To date, Bollinger has invested $76 million across its Mississippi facilities, including Bollinger Mississippi Shipbuilding (BMS), Bollinger Mississippi Repair (BMR), Bollinger Gulfport Shipyard (BGS), and CHAND Gulf Coast.

Since the acquisition in 2022, Bollinger has increased its Mississippi workforce by over 61%, with production roles at BMS alone increasing by more than 178%.  These numbers are expected to rise as the program reaches full production over the coming years. A key driver of this growth has been Bollinger’s innovative Bootcamp workforce development programs, which continue to strengthen the skilled labor pipeline.

“Our investment in developing the next generation of skilled American workers not only strengthens our competitive edge in the shipbuilding industry but also underscores our commitment to fostering economic growth and American innovation,” added Bordelon. “We are committed to providing high-quality careers that positively impact the families and communities we support along Mississippi’s Gulf coast.”

This contract modification primarily supports operations at Bollinger Mississippi Shipbuilding, with additional project contributions from facilities located in Massachusetts, Illinois, Virginia, Georgia, Louisiana, and other regions. Completion of the first Polar Security Cutter is anticipated by May 2030.

The Polar Security Cutter will provide the United States with enhanced operational capability in polar regions, playing a critical role in safeguarding national security, economic stability, and supporting vital maritime and commercial interests.

“Davie Awarded Major Contract by Canada to Build Polar Icebreaker” –Davie News Release

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Yesterday we learned that Canada had awarded a contract to Seaspan to build a 26,000 ton Polar Icebreaker. Today we learn that Canada awarded a second contract to a different shipyard, to build an additional 22,800 ton, 138.5 meter, polar icebreaker to a different design.

Below are news releases from Davie and Helsinki Shipyard.

It is almost impossible to accurately compare shipbuilding costs internationally, but the cost of this Canadian contract, $3.25B Canadian ($2.26B US), seems to suggest current estimates for the Polar Security Cutter are at least in the ballpark, and not outrageously high, rather that the initial contract was significantly underbid.

Davie Awarded Major Contract by Canada to Build Polar Icebreaker

March 8, 2025

Lévis — Davie, the Québec-based international shipbuilder, today announced it has been awarded a contract by the Government of Canada for the construction of a needed polar icebreaker. This initiative will leverage Davie’s international presence, with work beginning in 2025, under a robust contract framework that will enable Davie and Canada to set new standards of efficiency and productivity in vessel procurement.

Through this agreement, valued at $3.25 billion, Davie will deliver its production-ready heavy icebreaker design called the Polar Max to Canada by 2030. To support the rapid delivery of the ship, Davie will capitalize on the expertise of Helsinki Shipyard, which was acquired by Davie in 2023 with the support of the Québec government. Helsinki Shipyard has built over 50% of all the world’s icebreakers.

“Today marks a significant milestone in our commitment to enhancing our nation’s maritime capabilities” said The Honourable Jean-Yves Duclos, Minister of Public Services and Procurement and Quebec Lieutenant. “The contract awarded to Chantier Davie Canada Inc. for the build of a new polar icebreaker underscores our dedication to ensuring safe and efficient navigation in Arctic regions. This state-of-the-art vessel will not only strengthen our icebreaking fleet, but will also support critical scientific research and environmental protection efforts, and ensure national security in the Arctic. We are proud to take this step forward in strengthening our maritime infrastructure for safeguarding Canada’s sovereignty in the Arctic.”

While the early phase of the polar icebreaker construction is underway, the modernization of Davie’s Lévis Shipyard will continue, giving Davie time to accelerate the hiring of skilled workers across all trades. This will enable Davie to leverage its Canadian supply chain sooner than anticipated, while ensuring the completed polar icebreaker is delivered from Lévis. Davie plans to implement a workforce exchange, enabling Québec employees to learn world-class icebreaker construction expertise first-hand from their Finnish colleagues.

Davie President & CEO, James Davies, said: “Today’s announcement is truly transformative. Canada deserves immense credit for partnering with Davie on this groundbreaking procurement. Delivering such a special ship in a timely manner is in the best interests of all Canadians. It will accelerate economic benefits for Quebecers and strengthen the skills of our talented Lévis’ shipbuilders. In a volatile world, we can and must forge shipbuilding collaborations with trusted allies like Finland to secure shared interests. If not now, then when?”

“It is fitting that this announcement comes as Davie celebrates its 200th anniversary. The construction of the polar icebreaker will create opportunities for our employees and will place us firmly on track to create thousands of jobs far more quickly. Our Québec suppliers will be rapidly activated to help us deliver this needed ship in record time. There is a geopolitical imperative to act to protect our interests and we thank the Government of Canada and the Government of Québec for their vision and recognizing the time is now,” commented Alex Vicefield, Chairman and CEO of Inocea, the parent company of Davie Shipbuilding.

This contract is huge win for the ICE Pact. The Polar Max will be the first flagship project of the trilateral partnership. It will be proof that transatlantic collaboration is possible with the Polar Max delivered by Canadian shipbuilders supported by their Finnish colleagues.

A Win for Québec and for Canada

This announcement will bring immense benefits to Québec and the rest of Canada. Davie is committed to building a strong network of shipbuilding suppliers and plans to invest more than $200 million in local small- and medium-sized businesses to help them scale and reap the opportunities of shipbuilding contracts over the coming years and further Québec’s position as a naval construction hub.

Building on the success of our delivery of the NSC Asterix in 2018, Davie is once again committed to delivering on time and on budget.

As the global leader in Arctic shipbuilding, Davie stands out for its innovative approach and commitment to doing things differently. By working closely with Canada, Davie designed the strategy to expedite production and improve efficiency. This program will showcase Davie’s shipbuilding excellence, strengthen the local shipbuilding value chain, and create future major export opportunities for everyone involved.

About Davie

Based in Québec, Canada since 1825, Davie is a world-class designer and builder of specialist, mission-critical ships such as icebreakers, ferries and warships for government and commercial customers. Davie became a partner in the Government of Canada’s National Shipbuilding Strategy on April 4, 2023. This historic agreement is for the design and construction of the largest and most technologically advanced ice-going ships ever constructed in and for Canada. The initial $8.5 billion package of work includes seven heavy icebreakers and two large hybrid-powered ferries. In November 2023, Davie acquired Finland’s Helsinki Shipyard, the world leader in icebreaker design and construction. Find out more at davie.ca and helsinkishipyard.fi.

DAVIE AND CANADIAN GOVERNMENT AGREE ON HEAVY ICEBREAKER CONSTRUCTION – WORK TO BEGIN AT HELSINKI SHIPYARD

8.3.2025

Canadian-owned Davie, which owns the Helsinki Shipyard, signed an agreement with the Canadian government to construct a heavy icebreaker. The new vessel will be based on Davie’s advanced Polar Max icebreaker, created by the Helsinki Shipyard basing on Aker Arctic’s original Aker ARC 148 hull form.

Polar Max is the first newbuild project at the Helsinki Shipyard under Davie’s ownership, and it will be carried out in collaboration between Finnish and Canadian maritime industry experts. The work will begin in Helsinki and be completed at Davie’s shipyard in Canada. The finished vessel is scheduled to be delivered to the Canadian government by 2030. The unique expertise of the Helsinki Shipyard will play a significant role in delivering the vessel on such a fast schedule.

The construction of the icebreaker is expected to increase the direct workforce at the Helsinki Shipyard by around 500 employees, with many hundreds more employed throughout the Finnish maritime industry cluster.

The icebreaker order is part of Canada’s national shipbuilding program. This new order is the second heavy icebreaker project in this program. The project is also aligned with the principles of the Icebreaker Collaboration Effort (“ICE Pact”) between Finland, the United States and Canada, which originated from President Trump’s 2020 discussions with the Finland government. The ICE Pact supports the West’s urgent need to build advanced icebreaker fleets to counter the expansion of adversaries in the polar regions.

“When we acquired Helsinki Shipyard, we pledged to rebuild this historic business. The Polar Max project is evidence that we are delivering on our promise. We can’t wait to begin this new chapter in Helsinki Shipyard’s story. The Canadian government deserves immense credit for partnering with Davie on this groundbreaking procurement. In such a volatile world, we can and must forge shipbuilding collaborations with trusted allies like Finland to defend our shared interests. If not now, then when?” said James Davies, President & CEO, Davie Shipbuilding.

“The Polar Max project is an important milestone in expanding production and design in Helsinki. The project is an excellent example of Finland’s leading Arctic shipbuilding expertise, which is in significant demand internationally,” said Kim Salmi, CEO of Helsinki Shipyard.

Polar Max will be 22,800 tonnes vessel with a length of 138,5 meters. Additionally, it functions as a research vessel, capable of performing oil spill response operations and emergency towing year-round. Davie continues to promote similar projects internationally and aims to accelerate the development of Finland’s maritime industry ecosystem and the creation of Finnish maritime innovations.

Coast Guard Cutter Procurement: Background and Issues for Congress, Updated March 5, 2025 –Congressional Research Service

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US Capital West Side, by Martin Falbisoner

The Congressional Research Service (CRS) 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 the March 25, 2024 update. The report includes a nice one page summary if you are new to our current shipbuilding activities but the news is on pages 27 and 28, the last two pages of the report excluding the Appendixes, which I have reproduced below,

The Administration asked for two FRCs and the House Appropriations Committee has recommended four. This, in addition to the 67 currently funded, would bring the total number of FRC funded to 71 which is the requirement in the current program of record, 58 for domestic use, one lost to a fire in dry dock, six for PATFORSWA, and six for the Indo-Pacific.

It’s not clear to me if the six for the Indo-Pacific is just the six currently planned for Guam or does this refer to six in addition to the three originally planned for Guam that replaced two WPB110s? It has appeared the Coast Guard might also base FRCs in American Samoa. Looking at the numbers that appears to be the case.

It also appears another WMEC 270 that has gone through Service Life Extension Program (SLEP) will be headed for the Pacific.

FY2025 DHS Appropriations Act (H.R. 8752)

House

The House Appropriations Committee, in its report (H.Rept. 118-553 of June 14, 2024 on H.R. 8752, recommended the funding levels shown in the HAC column of Table 1. H.Rept. 118-553 states.

Fast Response Cutter (FRC).—The recommendation provides $335,000,000 to purchase four additional FRCs, economic price adjustments related to the rise in material and labor costs, and post-delivery missionization costs.

Offshore Patrol Cutter.—The recommendation provides the requested $530,000,000 to continue the program of record for these critical assets. The Committee directs the Coast Guard to continue to provide additional program and schedule details, as described in the explanatory statement accompanying Public Law 117–103, as part of the required quarterly major acquisition briefings. (Pages 53-54)

H.Rept. 118-553 also states

Engagement in the Indo-Pacific.—The Committee supports the Coast Guard’s efforts to help develop the maritime capabilities of partners and allies in Southeast Asia. To better assess these efforts, the Committee directs the Coast Guard to provide a briefing within 180 days of the date of enactment of this Act on its work in the Indo-Pacific, including current efforts, opportunities for expansion, and options for improving coordination with and leveraging capabilities with the DOD, especially U.S. Indo-Pacific Command (USINDOPACOM)….

Oceania Operations.—The Committee recognizes the importance of the Coast Guard in maintaining the U.S.’s posture in the Indo-Pacific. The Committee supports the Coast Guard’s efforts to expand its presence in the Indo-Pacific, especially through the ship rider program, and encourages the Coast Guard to continue its coordination with USINDOPACOM and partner and allied nations. To better evaluate these efforts, the Committee directs the Coast Guard to report to the Committee not later than 180 days after the date of enactment of this Act assessing the Coast Guard’s capabilities and operations in the Indo-Pacific. This report should include a list of current assets in the region, any assets and capabilities needed to address unfulfilled requirements, any areas where logistical support is needed, and any changes that must be taken to effectively implement the U.S. Indo-Pacific Strategy. To support the Coast Guard’s Indo-Pacific operations, the recommendation provides $3,000,000 for increased presence of regional Coast Guard Maritime Advisors, Liaison Officers, Attaches, and other foreign engagement positions throughout the Indo-Pacific, and $1,200,000 for Indo-Pacific workforce support including for housing, medical, and childcare access for Coast Guard personnel.

270′ WMEC Service Life Extension Program.—The Committee supports the Coast Guard’s efforts to counter aggression by the PRC in the Indo-Pacific. The recommendation includes $60,000,000 for a service life extension program for one Medium Endurance Cutter, enabling the Coast Guard to deploy an additional support cutter to the Indo-Pacific. The Coast Guard plays a vital role in the Indo-Pacific, but the vast distances in the region and limited resources hamper the Coast Guard’s ability to expand its presence. This Indo-Pacific support cutter will help the Coast Guard increase its activities and better support the U.S. mission in the Indo-Pacific. (Pages 50, 51, and 53)

“U.S. Coast Guard Year in Review” –USNI

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NTSB drone image of Francis Scott Key Bridge and Cargo Ship Dali, 26 March 2024

The US Naval Institute’s March 2025 issue of Proceedings provides a look back at Coast Guard activities in 2024. The service, Active, Reserve, Auxiliary and Civilians, has much to be proud of. Just to hit the some highlight,

There was good news on the recruiting front. Even as the military as a whole continues to struggle, the Coast Guard met its recruitment goals for active duty, reservists, and officers for the first time since 2007—though it remains about 10 percent down in total force numbers. 

SAR as always deserves a headline:

…saved more than 5,800 lives and $132 million in property across 14,000 cases.

U.S. Coast Guard Cutter Harriet Lane returns to home port after 79-day patrol, April 9, 2024. (U.S. Coast Guard photo by Senior Chief Petty Officer Charly Tautfest)

New Capabilities:

  • Cyber defense teams including new Reserve teams
  • The first new air station in 25 years at Ventura, CA.
  • Medium Endurance Cutter USCGC Harriet Lane (photo above) moved to the Pacific to support IUU fisheries enforcement and presence in the Western Pacific.
  • Three more FRCs in Guam for a total of six and more FRCs in Alaska.
  • Purchase of medium icebreaker M/V Aiviq, now USCGC Storis (photo below).

There was this cautionary note. As I have noted before, cutters spend more time underway than their Navy counterparts, yet we hear constantly that Navy ships are overworked. Only recently have complaints about shortages of maintenance for Coast Guard ships become common. (Still no complaints about too much time underway.)

“As we celebrate Coast Guard Cutter Smilax [WLIC-315], with 80 years of commissioned service, we must also note that we deploy our cutters, boats, and aircraft as much or more than our fellow services and keep them for longer, driving up maintenance costs.” He indicated the capital investment budget needs to bump from its current $1.4 billion to an estimated $3 billion, and the annual overall budget request needs to increase from its current $14 billion to $20 billion by 2033.

No News About Eastern’s Offshore Patrol Cutters / OPC Alternatives

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Future USCGC Argus at launch Eastern Shipyard

No News from Eastern: 

I was hoping for some news about Eastern’s progress on the Offshore Patrol Cutter (OPC) program, but I could not find any. Eastern has contracts to build four ships,

  • Argus (915) and Chase (916) to go to San Pedro, CA
  • Ingham (917) and Rush (918) to go to Kodiak, AK

Reported milestones for the four ships are as follows:

  • Argus:     Steel cut Jan. 7, 2019; Keel laid April 28, 2020; launched Oct. 27, 2023
  • Chase:    Steel cut April 27, 2020; Keel laid May 27, 2021
  • Ingham:  Steel cut Sep. 27, 2021; Keel laid July 15, 2022
  • Rush:     Steel cut Oct. 18, 2022

Nothing since October 2023, not even a report of keel laying for Rush, which should have happened in 2023. Was Rush’s keel laid? Are sea trials being conducted on Argus? WTFO!

The Planned Timeline:

The Congressional Research Service report, “Coast Guard Cutter Procurement: Background and Issues for Congress” noted.

“The posting for the RFP for the Stage 2 industry studies (October 11, 2019–Chuck) included an attached notional timeline for building the 25 OPCs. Under the timeline, OPCs 1 through 7 (i.e., OPCs 1-4, to be built by ESG, plus OPCs 5-7, which are the first three OPCs to be built by the winner of the Stage 2 competition) are to be built at a rate of one per year, with OPC-1 completing construction in FY2022 and OPC-7 completing construction in FY2028. The remaining 18 OPCs (i.e., OPCs 8 through 25) are to be built at a rate of two per year, with OPC-8 completing construction in FY2029 and OPC-25 completing construction in FY2038.

Using these dates—which are generally 10 months to about two years later than they would have been under the Coast Guard’s previous (i.e., pre-October 11, 2019) timeline for the OPC.

The Current Optimistic Timeline: 

We are in the middle of FY2025 and still waiting for OPC#1, so we are at least an additional three years late on delivery of USCGC Argus and we are almost certainly an additional two years late getting the first ship from Austal (though I am hoping for a pleasant surprise).

Eastern was expected to deliver one ship every year. I would have expected construction to speed up with experience, but the intervals between steel successive steel cuttings and between successive keel layings never got down to 12 months. But let us presume that Argus OPC #1 will be delivered in 2025 and Eastern will deliver #2- 4 at 12 month intervals.

Austal started cutting steel for OPC #5, Pickering (WMSM-919), on August 29, 2024. I assume they will deliver four years after starting steel cutting and annually thereafter with two per year delivered after #7. It should look like this.

  • 2025 #1
  • 2026 #2
  • 2027 #3
  • 2028 #4 & #5
  • 2029 #6
  • 2030 #7
  • 2031 #8 & #9
  • 2032 #10 & #11 These will replace the last of WMEC210s
  • 2033 #12 & #13. These will begin replacement of Alex Healy and the 13 WMEC270s
  • 2034 #14 & #15 These are the last that will be built under existing contracts
  • 2035 #16 & #17
  • 2036 #18 & #19
  • 2037 #20 & #21 These will begin replacement of the six SLEP WMEC270s
  • 2038 #22 & #23
  • 2039 #24 & #25 These will replace the last of the WMEC 270s

This does assume a smooth continuation of the program, delivering two ships a year without interruption even after exercising all options and completion of existing contracts.

All the WMEC210s will not be replaced until 2032. At that point even the youngest of the 210s would be 63 years old. It is by no means certain any will last that long, but Reliance is already 61 years old.

All WMECs would be replaced by the end of 2039 by which time the youngest WMEC270 will be 48 years old.

Will the program continue uninterrupted after the completion of the currently optioned 15 OPCs? This would be easy only if Austal wins the contract for a Phase 3. Is that a forgone conclusion?

If some other company wins the Phase 3 contract, will they also initially deliver the first three ships at the rate of one ship per year as was done with the first two contracts?

Alternatives: 

It can take up to ten years from the beginning of planning to delivery of the first ship. In reality it has taken considerably longer for the first OPC to get this far and we still no finished product. Even if all options are exercised, the last currently contracted OPC will be funded in FY2030 or 2031.

Do we still want to be building a design in 2030 that is 15 years old? Does the Coast Guard now own the design that could be handed over to another contractor to build the last ten ships or would a third yard have to provide a third detailed design, creating a “C” class of OPC?

Now is the appropriate time to consider alternatives.

Assuming we want to continue with the same design, Phase Three might be started with the idea of awarding a contract in FY2027 and delivering one additional OPC each year 2032, 2033, and 2034 by either Austal or a competing shipyard, with the winner producing two per year thereafter, until all 25 are completed. It would allow completion of all 25 a year and a half earlier.

If we want to look at an alternative that could replace the last ten currently planned OPCs and start delivering ships by 2035, we should issue an RFP in 2026.

There are two directions this new design could go.

  • A cheaper design that can be made in larger numbers.  A primary goal would be a smaller crew as a way to reduce operating costs.  It might be smaller and cheaper (we already have contracted for more than enough ships to do Alaska patrols), but should be able to support alternative mission modules and unmanned systems.
  • Ships that can be more readily upgraded for a wartime role. We might accelerate the design process by looking at the European Patrol Corvette, Australia’s Tier 2 combatant under the AUKUS umbrella, or if the country needs an ice capable combatant look at Finland’s Pohjanmaa-class corvette.

“Hellenic Navy names four (former USCG) Island-class patrol vessels (Video)” –Naval Today

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Credit: Ministry of National Defense (Greece)

Naval Today reports on the commissioning of four former US Coast Guard Island class cutters into the Greek Navy.

Lots of friendly nations are benefitting from receipt of previously well-maintained US Coast Guard vessels through Foreign Military Sales. Their availability helps our friends in the maintenance of a global rules based maritime environment. Ships that are no longer economical to support in the US, may be maintainable in other countries where labor costs are lower.

This movement of retiring ships should be part of regular Coast Guard planning. We should set a reasonable life, say 30 years for large ships and 25 for smaller, and produce a 30 year ship building plan. Yes, it may change, and it should, but it would establish expectations for future budgets. We should produce a new projection every year.

“Coast Guard announces immediate action in support of Presidential Executive Orders” –News Release/What Will the CG Do Differently?

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A good Samaritan notified Sector Miami watchstanders of a migrant vessel about 10 miles east of Sunny Isles, Florida, Jan. 8, 2023. The people were repatriated to Cuba on Jan. 16, 2023. (U.S. Coast Guard photo)

Below is a CG news release.

The Coast Guard is a military organization. It does as it is told. That is the way it is supposed to be. But these are not new missions. Units are already positioned to carry out these missions. If we devote more assets to these missions, until, if or when, the Coast Guard gets more assets, they will have to come from other missions.

Frankly it seemed Immigration interdiction on the water routes was going well, doing much better than we are doing on the land borders. The New York Post, apparently reporting on this news release was headlined, “After Trump’s orders, US Coast Guard surges near Haiti, Cuba to block ‘mass migration’, but there have been no reports I’ve seen of a large increase in immigration attempts. The New York Post article also includes a video that indicates an avenue of legal immigration, that has been used as an incentive to not attempt illegal immigration, is being closed off.

So, what will be done differently?

NE fisheries might get less attention. Generally, the East coast has had a disproportionate percentage of the fleet, considering that something like 84% of the US EEZ is under PACAREA. It appeared new construction FRCs were already programmed to go to the Pacific and that there might be a new base in American Samoa.

It had appeared that another WMEC270 transfer to the Pacific was in the works, but they could probably use more than one more.

Will Coast Guard Aircraft be moved from the NE to the SE or the Pacific?

The President might choose to stop fisheries patrols with the Compact of Free Association States, but that would leave a vacuum the Chinese might exploit.

I would really love to see the Coast Guard start a program to provide a ship class around 2-3000 tons, with better potential as a warship, to build in greater numbers, in lieu of the as yet uncontracted last 10 OPCs. But that could provide no near-term help.

I would love to see cutters better prepared for a terrorist attack, which would also provide them better potential for use as a naval auxiliary. We could start doing that relatively quickly, but it would not have any effect on immigration.

There is no indication what the Coast Guard will do to interdict fentanyl which was one of the criticisms of Admiral Fagan’s term as Commandant. I don’t see what the Coast Guard could do since, I believe, it primarily comes across the land border or in containers.

If the President wants more assets to interdict drugs in the Eastern Pacific Drug Transit Zone, he could task the Navy to provide more ships to 4th Fleet. The Coast Guard could probably provide more law enforcement detachments relatively quickly if needed.

{I wonder if Customs and Border Protection are doing anything differently?)

Will the Coast Guard get additional billets it would need to operate now very old deactivated WMEC210s and WPB87s?

Or will the Coast Guard once again try to do more with less?

Jan. 22, 2025

Coast Guard announces immediate action in support of Presidential Executive Orders

By Press Release

The Coast Guard announced immediate action on executive orders issued by the White House Tuesday, Jan 21, 2025.

“The U.S. Coast Guard is the world’s premiere maritime law enforcement agency, vital to protecting America’s maritime borders, territorial integrity and sovereignty,” said Adm. Kevin Lunday, the Coast Guard’s acting commandant. “Per the President’s Executive Orders, I have directed my operational commanders to immediately surge assets — cutters, aircraft, boats and deployable specialized forces — to increase Coast Guard presence and focus starting with the following key areas:

  • The southeast U.S. border approaching Florida to deter and prevent a maritime mass migration from Haiti and/or Cuba;
  • The maritime border around Alaska, Hawai’i, the U.S. territories of Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, Puerto Rico and the U.S. Virgin Islands;
  • The maritime border between the Bahamas and south Florida;
  • The southwest maritime border between the U.S. and Mexico in the Pacific;
  • The maritime border between Texas and Mexico in the Gulf of America; and
  • Support to Customs and Border Protection on maritime portions of the southwest U.S. border.

Together, in coordination with our Department of Homeland Security and Department of Defense teammates, we will detect, deter and interdict illegal migration, drug smuggling and other terrorist or hostile activity before it reaches our border.”