“Coast Guard Fears Two-Year Budget Boost Just A Blip: Adm. Zukunft”–Breaking Defense

Coast Guard Commandant Adm. Paul Zukunft at the Senate Committee on Commerce, Science, and Transportation. U.S. Coast Guard photo by Petty Officer 1st Class Patrick Kelley.

BreakingDefense brings a report of the Commandant’s remarks at the Defense Writers’ Breakfast. He expresses concern that the budget success for FY 2018 and 2019 may be an anomaly.

If you think the competition for budget dollars is intense today, Zukunft warned reporters at a Defense Writers’ Group breakfast, “it’s going to be even more competitive tomorrow.”

There is discussion of shortages of Operations and Maintenance funding, the shore side facilities backlog, and the icebreaker program.

Video: Review of Fiscal Year 2019 Budget Request for the Coast Guard and Maritime Transportation Programs

Note the video does not really start until approximately time (17m08s).

This is going to be a hodgepodge, but it is all about the 2019 budget. There is a video above. There will be my own observations on the video. There will be a brief outline of the Procurement, Construction, and Improvement (formerly AC&I) portion of the budget copied from the “Summary of Subject Matter.” At the tail end I have reproduced the Commandant’s prepared statement that was presented at the hearing

You can look here for the FY2018 budget request. I haven’t found the actual final FY2018 as enacted.

ABOUT THE VIDEO

Above is a video of a 14 March, 2018, House Coast Guard and Maritime Transportation Subcommittee. The commandant testified as well as Master Chief Steven W. Cantrell, Master Chief Petty Officer of the Coast Guard, United States Coast Guard, Rear Admiral Mark H. Buzby, USN, Ret., Administrator, Maritime Administration, and The Honorable Michael A. Khouri, Acting Chairman, Federal Maritime Commission

You can find more information including all the prepared statements and the subcommittee chairman’s opening remarks here.

MY OBSERVATIONS

This subcommittee has been highly supportive of the Coast Guard, and we see the same in this hearing. The chairman, Duncan Hunter (R, CA), (17m30s) expressed his opinion that the Coast Guard was not fairing well under the Department of Homeland Security (DHS). He also noted the apparent obstruction of measures of effectiveness by DHS.

Ranking member, John Garamendi (D, CA), (22m) noted that there had been a welcomed significant bump in Coast Guard funding, but questioned if this would continue or would it prove an anomaly. He noted that attempting to stop drug trafficking would be better served by putting more money into the Coast Guard than by building a border wall.

(29m30s) The Coast Guard’s unfunded priority list, submitted long ago is still hung up in the administration.

(33m30s) MCPO Cantrell addressed quality of life concerns. 

(55m30) Ranking member Garamendi noted the addition of $720M added to the budget for Heavy Polar Icebreaker(s) (HPIB) in addition to $30M already in the budget, and stated that he saw this as money for the second icebreaker because the DOD was not relieved of their obligation to fund a HPIB.

(1h03m) Commandant expressed his confidence in the helicopter life extension programs expected to keep them in operation until 2033 when the Coast Guard would be able to join in the Army lead Future Vertical Lift program. He suggested that a single helicopter type might be able to replace both the MH-65 and MH-60s.

(1h07m) Commandant answering a question about AMIO in the Caribbean noted that the Webber class Fast Response Cutters (FRC) we working well in this role, but there is a shortage of ISR assets that he believed might be addressed by land based unmanned air systems (UAS).

(1h17m) In answer to a question about replacement of the Island Class six 110 foot Island class cutters currently assigned to CENTCOM as PATFORSWA, the Commandant, noting the 110s would time out in 2022, said this has been discussed at the highest levels with the Navy and there was a possibility that Webber class replacements could be funded by the Navy.  Interestingly, he also noted that the Navy’s Cyclone class patrol craft would time out in 2023 suggesting to me perhaps he believes the Navy is considering a version of the Webber class.

(1h39m) Concern was expressed that while the Commandant has consistently expressed a need for $2B annual in the AC&I account (now PC&I) and $1.8B was provided in FY2018 and $1.9B in FY2019, that the current projection is only $1.4B in FY2020.

PROCUREMENT, CONSTRUCTION, & IMPROVEMENT BUDGET

There is a good review of the FY2019 budget in the “Summary of Subject Matter.”

There is also a note on a change in accounting procedure.

In FY 2019, the Coast Guard will transition to the DHS Common Appropriations Structure (CAS). Accordingly, activities funded through the previous Operating Expenses, Reserve Training, Environmental Compliance and Restoration, and Medicare Eligible Retiree Health Care Fund Contribution are included as part of the new Operations and Support (O&S) account. In addition, acquisition personnel costs previously funded through the Acquisition, Construction, and Improvements account ($118.2m in the FY2018 budget request–Chuck) are included as part of the O&S account. The Acquisition, Construction, and Improvements account transitions into the Procurement, Construction, and Improvements account and the Research, Development, Test and Evaluation account becomes the new Research and Development account.

Below is the summary information on the PC&I section that replaces the AC&I portion of the budget.

  • Procurement, Construction, and Improvements (previously Acquisitions, Construction, and Improvements)The President requests $1.89 billion for the Procurement, Construction, and Improvements (PC&I) account, a $516.7 million (or 37.7 percent) increase over the FY 2017 enacted level. The PC&I account funds the acquisition, procurement, construction, rebuilding, and physical improvements of Coast Guard owned and operated vessels, aircraft, facilities, aids-to-navigation, communications and information technology systems, and related equipment.The FY 2019 budget request includes $1.76 billion for the acquisition of aircraft, vessels, and the continued build-out of Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems. This represents an increase of $597.1 million (or 51.7 percent) from the FY 2017 enacted level. The budget request includes:$30 million for the construction of a Heavy Polar Icebreaker. The FY 2019 Budget Addendum included an additional $720 million, for a total of $750 million; 
  • $65 million to conduct Post Delivery Activities on National Security Cutters (NSC) 7 through 9; 
  • $240 million for the production of four Fast Response Cutters (FRC); 
  • $400 million for the construction of the second Offshore Patrol Cutter (OPC) and to facilitate evaluation of the Long Lead Time Materials for OPC 3. The OPCs will replace the Service’s aging 210-foot and 270foot Medium Endurance Cutters (MEC); 
  • $80 million to fund the requirement to establish logistics for 14 newly acquired HC-27J aircraft. The request funds HC-27J Asset Project Office activities, logistics, training, and engineering studies to assess and resolve aircraft obsolescence issues; 
  • $20 million for the continued modernization and sustainment of the HH-65 Dolphin helicopter fleet; 
  • $23.3 million for C4ISR design, development, and integration; and
  • No funding for the Alteration of Bridges program in FY 2019. The program did not receive funding in FY 2017 or FY 2016. Established by the Truman-Hobbs Act of 1940 (33 U.S.C. 511 et. seq.), the Alteration of Bridges program authorizes the Coast Guard to share with a bridge’s owner the cost of altering or removing privately or publicly owned railroad and highway bridges that are determined by the Service to obstruct marine navigation.

The budget requests $135 million to construct or renovate shore facilities and aids-to-navigation. This request is a $35.5 million (or 26.3 percent) increase over the FY 2017 enacted level. The Coast Guard currently has a backlog of 95 prioritized shore facility improvement projects with an estimated combined cost of over $1.5 billion

____

THE COMMANDANT’S PREPARED TESTIMONY

Below you will find “TESTIMONY OF ADMIRAL PAUL F. ZUKUNFT COMMANDANT, U.S. COAST GUARD ON “THE COAST GUARD’S FISCAL YEAR 2019 BUDGET REQUEST” BEFORE THE HOUSE COAST GUARD AND MARITIME TRANSPORTATION SUBCOMMITTEE” which I have copied in full.

Introduction

Mr. Chairman and distinguished members of the Committee, I appreciate the opportunity to testify today. Thank you for your enduring support of the United States Coast Guard, particularly the significant investments provided in the FY 2017 Consolidated Appropriations Act, recent Hurricane Supplemental, and ongoing deliberations to support our FY 2018 and FY 2019 President’s Budget requests.

As the world’s premier, multi-mission, maritime service, the Coast Guard offers a unique and enduring value to the Nation. The only branch of the U.S. Armed Forces within the Department of Homeland Security (DHS), a federal law enforcement agency, a regulatory body, a first responder, and a member of the U.S. Intelligence Community – the Coast Guard is uniquely positioned to help secure the maritime border, combat transnational criminal organizations (TCO), and safeguard commerce on America’s waterways.

The Coast Guard’s combination of broad authorities and complementary capabilities squarely aligns with the President’s national security and economic prosperity priorities; furthermore, it offers an agile toolset to address the Nation’s most pressing challenges. Appropriately positioned in DHS, the Coast Guard is a military service and a branch of the Armed Forces of the United States at all times.1 We are also an important part of the modern Joint Force2 and currently have forces assigned to each of the five geographic Combatant Commanders, as well as Cyber Command.

As demonstrated in the 2017 record hurricane season, the Coast Guard is the Nation’s “maritime first responder” and plays a leading role in executing the National Response Plan (NRP) for disaster situations. Our ability to rapidly surge in response to emerging threats or contingencies are critical to success across the spectrum of missions we prosecute.

We live in an increasingly volatile, uncertain, complex, and ambiguous world. Rapid technological advancement, increasing globalization, and intensifying threats from state and nonstate actors alike challenge international norms and threaten global governance.

To ensure we meet the demands of today while preparing for tomorrow, the Coast Guard is guided by a five-year Strategic Intent and suite of regional and functional strategies that drive our Service’s operations and investments.

These strategic efforts are informed by the National Security Strategy and applicable DHS strategies, and are coordinated to augment Department of Defense (DoD) priorities. Using these strategies as guideposts, leveraging the intelligence community, and employing a risk-based approach to focus our limited resources allows us to address maritime threats with the greatest precision and effect.

Strategic Effects

Fueled by the Service’s unique authorities and capabilities, our Western Hemisphere Strategy continues to yield large-scale successes in our counter-drug mission. The Coast Guard’s persistent offshore presence and associated interdiction efforts sever the supply lines of criminal networks where they are most vulnerable—at sea. Leveraging over 30 multilateral and bilateral agreements with a host of government organizations, the Coast Guard’s long-term counter-TCO efforts promote stability and strengthen the rule of law throughout these regions. Working with interagency partners, the Coast Guard seized 223 metric tons of cocaine and detained and transferred 606 smugglers for criminal prosecution in FY 2017. Highlighting our record-breaking mission performance for drug interdiction was the STRATTON’s offload of over 50,000 pounds of illicit narcotics, with an estimated street value of over $6.1 billion. This was a result of collaborative efforts between four U.S. Coast Guard cutters, DHS maritime patrol aircraft, and a U.S. Navy ship in over 25 separate interdictions. Beyond the important task of removing cocaine from the illicit system that gets it to U.S. streets, prosecuting smugglers facilitates deeper understanding of TCOs and ultimately helps our unified efforts to dismantle them.

Without question, National Security Cutters (NSC) have been a game-changer not only for our drug interdiction and counter-TCO operations in the southern maritime transit zone, but also in contributing to other national security priorities, such as supporting DoD Combatant Commander requirements across the globe and projecting sovereign rights in the Arctic.

Looking forward, the Offshore Patrol Cutter (OPC) will provide the tools to more effectively enforce Federal laws, secure our maritime borders, disrupt TCOs, and respond to 21st century threats. Continued progress on this acquisition is absolutely vital to recapitalizing our aging fleet of Medium Endurance Cutters (MECs), some of which will be over 55 years old when the first OPC is delivered in 2021. In concert with the extended range and capability of the NSC and the enhanced coastal patrol capability of the Fast Response Cutter (FRC), OPCs will be the backbone of the Coast Guard’s strategy to project and maintain offshore presence.

As one of the five Armed Forces, the Coast Guard deploys world-wide to execute our statutory Defense Operations mission in support of national security priorities. On any given day, 11 cutters, two maritime patrol aircraft, five helicopters, two specialized boarding teams, and an entire Port Security Unit are supporting DoD Combatant Commanders on all seven continents. In the Middle East, our squadron of six patrol boats continues to police the waters of the Northern Arabian Gulf in close cooperation with the U.S. Navy, promoting regional peace and stability. Likewise, as one of the principal Federal agencies performing detection and monitoring in the southern maritime transit zone, the Coast Guard provides more than 4,000 hours of maritime patrol aircraft support and 2,000 major cutter days to DoD’s Southern Command each year.

In the high latitudes, the Arctic region is becoming increasingly accessible at a time when global interests in energy, clean water, and subsistence continue to intensify. The Coast Guard is committed to the safety, security, and environmental stewardship of the Arctic, and we will remain closely engaged with our partners, including Russia, via the Arctic Coast Guard Forum. By focusing on collaboration over conflict, we are promoting governance and building a shared approach to prevention and response challenges in the region.

Meanwhile, the 42-year old POLAR STAR recently completed another Operation DEEP FREEZE patrol in Antarctica. Just one major casualty away from leaving the Nation without any heavy icebreaking capability, POLAR STAR supported U.S. strategic interests and the National Science Foundation by breaking a navigable shipping lane to deliver fuel and critical supplies to the U.S. base at McMurdo Sound.

I appreciate your support for the $150 million appropriated in Shipbuilding and Conversion, Navy (SCN) funding in the FY 2017 Omnibus. This is a great step forward to secure our future in the Polar Regions and finally recapitalize the Nation’s icebreaker fleet. This funding coupled with the $750 million in the FY 2019 President’s Budget, would enable the Coast Guard to award a contract for detail design and construction and deliver the first new heavy polar icebreaker in 2023. These critical investments reflect our interests and standing as an Arctic Nation and affirm the Coast Guard’s role in providing assured access to the Polar Regions.

At the same time the Service was conducting counter-drug missions in the Eastern Pacific and projecting sovereign rights in the Arctic, the Coast Guard also launched one of the largest responses in history during a historic 2017 hurricane season. Over a five week period, Hurricanes HARVEY, IRMA, MARIA, and NATE impacted over 2,540 miles of shoreline3, and Coast Guard men and women in helicopters, boats, cutters, vehicles and on foot rescued over 11,300 people and over 1,500 pets.

During our 2017 hurricane response, the Coast Guard resolved over 1,269 aids to navigation discrepancies, handled 290 pollution cases, located and assessed more than 3,623 grounded vessels, with more than 1,585 removed to date. Within hours after each storm’s passage, Coast Guard damage and recovery assessment teams were on-scene determining the status of ports and waterways, leveraging electronic aids to navigation when feasible to facilitate the rapid reopening of key ports and waterways, and assessing impacts to Coast Guard facilities and capabilities. This enabled a vital portion of the country’s waterways to reopen, helping maintain our Maritime Transportation System (MTS) which contributes $4.6 trillion annually to our Gross Domestic Product.

The daily activities of Coast Guard men and women are heroic, as they support nearly every facet of the Nation’s maritime interests, protect our homeland, and secure our economic prosperity. In addition to the hurricane responses, the Coast Guard prosecuted over 16,000 search-and-rescue cases and saved more than 4,200 lives; interdicted more than 2,500 undocumented migrants; completed over 9,100 Safety of Life at Sea safety exams on foreign vessels; and responded to over 12,200 reports of pollution incidents.
Beyond operations, we earned our fifth consecutive clean financial audit opinion – the only Armed Service that can make such a claim. Further, our major acquisition programs and product lines are delivering new assets on schedule and on budget that have proven to meet our operational requirements. To better guide our modernization, we developed a Long Term Major Acquisitions Plan (LTMAP), a roadmap to field modern platforms to address 21st century threats. We have been working with the Administration to finalize the details of the LTMAP and are committed to delivering this report to Congress as soon as possible.

Our greatest strength is undoubtedly our people. Coast Guard operations require a resilient, capable workforce that draws upon the broad range of skills, talents, and experiences found in the American population. In FY 2019, the Coast Guard will maintain a proficient, diverse, and adaptable workforce that responds effectively to changing technology, an increasingly complex operating environment, and dynamic partnerships. Together, modern platforms and a strong, resilient workforce will maximize the Coast Guard’s capacity to meet future challenges.

Conclusion

History has proven that a responsive, capable, and agile Coast Guard is an indispensable instrument of national security. Funding 21st century Coast Guard platforms and people are especially prudent investments given today’s challenging fiscal environment. I firmly believe no other investment will return more operational value on every dollar than the extraordinary men and women of the U.S. Coast Guard—which includes 48,000 Active Duty and Reserve members, 8,500 civilians, and over 27,000 volunteer members of the Coast Guard Auxiliary. As illustrated by our sustained response to an historic hurricane season, another record year removing illicit narcotics from the maritime approaches, and unique support to Combatant Commanders around the globe; our ability to rapidly surge resources to emerging threats continues yield unprecedented results for the Nation.

With the continued support of the Administration and Congress, the Coast Guard will continue to live up to our motto – Semper Paratus – Always Ready. Thank you for all you do for the men and women of the Coast Guard.

 

 

 

 

“Not Your Mother’s Coast Guard: How the Service Can Come into Its Own Against 21st Century Threats”–Modern War Institute at West Point

MSRT anti-terrorism training

The Modern War Institute at West Point has an excellent exploration of what the new National Security Strategy could mean to the Coast Guard, written by Cdr. Kevin Duffy, USCG. It says everything I had hoped to say about this new direction and more.

“With the release of the 2017 National Security Strategy, however, the Coast Guard has been presented with an opportunity to maximize its value to a government that appears to be taking a different view on which activities and capabilities should be emphasized in the national security realm.

“…As the NSS indicates that such activities in support of its homeland and border security goals will receive “advanced technology [and] the employment of additional personnel,” smart adjustments by the Coast Guard could well bolster the case for force expansion and increased interagency support in order to continue and expand its efforts.

“…Under this same homeland umbrella, the NSS likewise stresses the importance of transportation security and domestic resilience—both areas in which the Coast Guard can embrace leadership roles.”

“…In terms of domestic resilience, the Coast Guard has expansive disaster response and incident command capabilities and responsibilities for maritime incidents, and would be a natural leader in working with industry and state and local partners to enhance capabilities in the NSS’s identified areas of risk management, planning, preparedness, and information sharing.

“… The fact that this NSS explicitly acknowledges the links between terrorist networks and criminal, drug, and “other irregular threats” should not go unnoticed: it gives the Coast Guard the opportunity to emphasize its unique capabilities, partnerships, and successes in this realm. References to threats and operations “below the level of conventional military conflict” or “below the threshold of military conflict” appear four times in this strategy. If that’s a niche that the government now wants to emphasize, the Coast Guard needs to be in the vanguard of associated efforts.

“…Specifically, the idea of a squadron of Coast Guard patrol boats dedicated to operations in Central America has been favored by Coast Guard leadership in recent years. Perhaps the initiatives that this NSS envisions as being necessary to disrupt criminal networks (and, by extension, illicit actors including terrorists) will provide the needed justification to make it a reality.

“…There has perhaps never been a better opportunity for the Coast Guard to assert itself in terms of its national security roles, whether in protecting the nation’s borders or operating in the cyber realm, in protecting maritime infrastructure or safeguarding the domestic energy sector, in leading the effort to make ports resilient or disrupting criminal and terrorist networks throughout the Western Hemisphere. With this in mind, the service should intelligently respond to the 2017 NSS by reforming and articulating the impact of current efforts and refocusing or innovating in areas that it did not previously emphasize. In this way, the Coast Guard can usher in an era of more robust and effective operations in the national security sphere, making the most of its unique nature in order to protect the country on a host of important fronts.

I have picked out on a small part of this post. Please take a look.

It seems, after a rocky start, the Coast Guard has gotten the President’s attention, and I don’t think he will listen blindly to GAO’s preconceptions of the Coast Guard’s place in the National Security apparatus. It truly may be time to take the Homeland Security missions seriously. 

How much would it cost to weaponize a cutter?

Photo: Sigma 10514 in Mexican Navy configuration, fitted with a BAE Systems Bofors 57Mk3 57mm main guna 12.7mm remote weapon system right behind it. The Mexican Navy opted for the Smart Mk2 radar by Thales. The Mexican “Long Range Patrol Vessel” will not be fitted with VLS cells but a Raytheon RAM launcher will be fitted on top of the helicopter hangar.

How much would it cost to turn one of our new construction cutters into a minimally capable frigate with at least some capability for anti-submarine, anti-surface, and self defense anti-air warfare?

I don’t have a definitive answer but we did get a good indication along with more information about Mexico’s new long range patrol vessel, a Damen 10514 design, that is close enough to our own Offshore Patrol Cutter requirements, that I thought it might have been an OPC contender.

Earlier we had an indication regarding the addition of VLS and  Evolved Sea Sparrow Missiles (ESSM) when Chile ordered $140.1M worth of equipment to arm three ships. Plus we had an earlier post based on a 2009 Congressional Budget Office study (apparently no longer available on line) that suggested costs to replace the Phalanx on NSCs with SeaRAM and to add 12 Mk56 VLS and associated equipment, which could have provided up to 24 ESSM.

The Defense Security Cooperation Agency has issued a news release concerning the sale of weapons for the new Mexican patrol vessel, and the shopping list is a pretty extensive, including anti-surface, anti-air, and anti-submarine weapons.

Mexico –Harpoon Block II Missiles, RAM Missiles and MK 54 Torpedoes

Media/Public Contact: pm-cpa@state.gov
Transmittal No: 17-63

­­­WASHINGTON, Jan. 5, 2018 – The State Department has made a determination approving a possible Foreign Military Sale to Mexico of RGM-84L Harpoon Block II surface launched missiles, Block II Rolling Airframe Missile (RAM) tactical missiles and MK 54 Mod 0 lightweight torpedoes for an estimated cost of $98.4 million.  The Defense Security Cooperation Agency delivered the required certification notifying Congress of this possible sale today.

The Government of Mexico has requested to buy six (6) RGM-84L Harpoon Block II surface launched missiles, twenty-three (23) Block II Rolling Airframe Missile (RAM) tactical missiles and six (6) MK 54 Mod 0 lightweight torpedoes.  Also included are eight (8) MK 825 Mod 0 RAM Guided Missile Round Packs (GMRP) tri-pack shipping and storage containers; RAM Block 2 MK 44 Mod 4 Guided Missile Round Pack (GMRP); two (2) MK 32 Surface Vessel Torpedo Tubes (SVTT) triple tube launchers; two hundred and fifty (250) rounds of AA98 25 mm high explosive and semi-armor piercing ammunition; seven hundred and fifty (750) rounds A976 25mm target practice and tracer ammunition; four hundred and eighty (480) rounds of BA22 57mm high explosive programmable fuze ammunition; nine hundred and sixty (960) rounds of BA23 57mm practice ammunition; containers; spare and repair parts; support and test equipment; publications and technical documentation; personnel training and training equipment; U.S. Government and contractor representatives’ technical assistance; engineering and logistics support services; installation services; associated electronics and hardware to control the launch of torpedoes; and other related elements of logistics and program support.  The estimated cost is $98.4 million.

This proposed sale will support the foreign policy and national security of the United States by helping to improve the security of a strategic partner.  Mexico has been a strong partner in combating organized crime and drug trafficking organizations.  The sale of these ship-based systems to Mexico will significantly increase and strengthen its maritime capabilities.  Mexico intends to use these defense articles and services to modernize its armed forces and expand its existing naval and maritime support of national security requirements and in its efforts to combat criminal organizations.

Mexico intends to use the weapon systems on its Mexican Navy Sigma 10514 Class ship.  The systems will provide enhanced capabilities in effective defense of critical sea lanes.  The proposed sale of these systems and support will increase the Mexican Navy’s maritime partnership potential and align its capabilities with existing regional navies.  Mexico has not purchased these systems previously.  Mexico will have no difficulty absorbing this equipment into its armed forces.

The proposed sale of this equipment will not alter the basic military balance in the region.

The equipment will be provided from U.S. stocks.  There are no known offset agreements proposed in connection with this potential sale.

Implementation of this proposed sale will require annual trips to Mexico involving U.S. Government personnel and contractor representatives for technical reviews, support, and oversight for approximately two years.

There will be no adverse impact on U.S. defense readiness as a result of this proposed sale.

This notice of a potential sale is required by law and does not mean the sale has been concluded.

All questions regarding this proposed Foreign Military Sale should be directed to the State Department’s Bureau of Political Military Affairs, Office of Congressional and Public Affairs, pm-cpa@state.gov.

The big ticket items certainly made the head lines, but the ammunition for the 57mm is not cheap.

Fortunately for the Coast Guard, the Navy generally pays for our ammunition and weapon systems. The cost to the Coast Guard is installation and integration, plus primarily long term personnel and training costs.

Video–“Coast Guard Readiness: How Far Can We Stretch Our Nation’s Only Multi-Mission, Military Force?”

Above is the video of the Senate Subcommittee hearing for which I provided the Commandant’s prepared remarks earlier.

Participating Senators I noted were:

  • Dan Sullivan, Sub-Committee chair (R, Alaska)(Lt.Col., US Marine Corps Reserve)
  • Gary Peters, ranking member (D, Michigan)(LCdr. US Navy Reserve, Supply Corps)
  • Bill Nelson, ranking member of the Commerce Committee (D, Florida)(Capt. US Army Reserve)(NASA Scuttle payload specialist)
  • Roger Wicker, Chairman of the Seapower sub-committee (R, Mississippi)(Lt.Col. ret. USAF reserve)
  • Richard Blumenthal (D, Connecticut) (USMC Reserve 1970 to 1976 discharges as Sargent)
  • Brian Schatz (D, Hawaii)
  • Ed Markey (D, Mass.) (Spec4, US Army Reserve, 1968-73)
  • Jim Inhofe (R, Oklahoma) (Spec4, US Army, 1956-1958)
  • Maria Cantwell (D, Washington)

You can also check out the original post from the Senate Committee on Commerce, Science, and Transportation. (Same video is available there, but the meeting does not actually start on that version of the video until minute 36.) There you can also find the written statements of the other three witness who constituted the second panel. The Commandant was the sole witness on the first panel.

This was something of a love fest for the Coast Guard with repeated praise for the people and actions of the Coast Guard.

This hearing was reputedly about how the Coast Guard had been impacted by the unusually severe Hurricane season. There is not a lot new here but there were some interesting remarks.

Polar Icebreaker Contracts

The intention is to Contract for the first Icebreaker and then employ block buy for the next two (28m). To me this seems to negate most of the advantage of a block buy. I don’t believe we will or should buy one and then wait until we have tried it out before contracting for the next two. That would necessitate a delay of at least five years during which we would still have the nightmare scenario of our only heavy icebreaker having no rescue if it should break down in the ice–certainly not an impossibility even with a new ship. If we are going to contract for the remaining two before testing the first, we might as well block buy all three.

First of class is always the most expensive. If the shipyard gets a block buy they know that initial improvements in productivity can be amortized over the entire block buy quantity. In some cases, in order to win the whole project, the shipyard will cut the price of the first ship substantially knowing they will make a profit over the entire project.

If we buy one and then block buy the second and third, we have paid for improvements to the winning yard with the first contract and minimized the chances for a competitive bid for numbers two and three.

Legislation has capped DOD participation in icebreaker procurement, so the bulk of icebreaker procurement costs will come out of the Coast Guard budget.

Authorization

There was a lot of discussion about the need to have the Coast Guard Authorization Bill signed into law, still not approved. You can see it here.

Other topics

There was a discussion of the high cost of the Coast Guard response to the recent series of Hurricanes.

Representative Sullivan spent a lot of time, discussing and advocating for an eleven mile road from King Cove  (population estimate–989) to Cold Bay, Alaska (population estimate–122) which has an all-weather airport with two runways, one 10,180 feet and one 6285 feet in length. The Coast Guard connection is that the road would minimize or eliminate the necessity for the Coast Guard to Medivac emergencies from King Cove by helicopter, which is frequently hazardous. It is a Federal issue, because the road would run through a Federal reserve. The Commandant fully supported the desirability of completing the proposed single lane gravel road as a means of minimizing the requirement for helicopter medivac.

Video Breakdown

28m Domestic icebreakers–Design work on new domestic icebreakers is expected to start in 2030. That sounds a bit late to me. Mackinaw was commissioned in 2006 so if that is what he is really talking about, that makes sense, but the 140 foot icebreaking tugs are a different story. The first for of these will be 51 years old in 2030. More than  half of them have already completed in-service which was expected to add 15 years to their service life. Morro Bay, at least, is expected to reach the end of her service life in 2030, and considering how long it takes us to build a ship we really need to start the process not later than 2025.

45m Western Pacific Fisheries Protection–They have not seen much risk of Illegal, Unregulated, or Unreported fishing. 

51m Inland River Tenders

56m We may need to replace the 52 ft MLBs with something larger than the 47 foot MLB sometime in the future, but their end of life is not yet apparent

58m Coast Guard Museum in New London

60m Sexual Assault in the CG

1h02m Puerto Rico/Virgin Islands continuing commitment and its effects on drug seizures and alien migrant interdiction.

1h05m Vessel homeporting

1h08 CG center of expertise, particularly in regard to clean up spills in ice and fresh water

1h16m Army Corp of Engineers dredging backlog.

1h17m  Second Panel begins.

1h19m Medivac from King Cove

1h31m Mr Smithson regarding Deepwater Horizon experience, unified approach, investment in mitigation.

 

Coast Guard Cutter Procurement: Background and Issues for Congress–Nov. 30, 2017

OPC “Placemat”

The Congressional Research Service has issued an updated report on Coast Guard Cutter procurement by Specialist in Naval Affair, Ronald O’Rourke. It is available in pdf format here or you can read it on the US Naval Institute site here.

Quoting from the Report,

Summary

The Coast Guard’s acquisition program of record (POR) 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 cutters and patrol craft. The Coast Guard’s proposed FY2018 budget requests a total of $794 million in acquisition funding for the NSC, OPC, and FRC programs.

NSCs are the Coast Guard’s largest and most capable general-purpose cutters. They have an estimated average procurement cost of about $695 million per ship. The first six are now in service (the sixth was commissioned into service on April 1, 2017). The seventh, eighth, and ninth are under construction; the seventh and eighth are scheduled for delivery in 2018 and 2019, respectively. As part of its action on the Coast Guard’s FY2017 budget, Congress provided $95 million for procurement of long lead time materials (LLTM) for a 10th NSC. The Coast Guard’s proposed FY2018 budget requests $54 million in acquisition funding for the NSC program; this request does not include additional funding for a 10th NSC.

OPCs are to be smaller, less expensive, and in some respects less capable than NSCs. They have an estimated average procurement cost of about $421 million per ship. The first OPC is to be funded in FY2018 and delivered in 2021. On September 15, 2016, the Coast Guard announced that it was awarding a contract with options for building up to nine ships in the class to Eastern Shipbuilding Group of Panama City, FL. The Coast Guard’s proposed FY2018 budget requests $500 million in acquisition funding for the OCP program for the construction of the first OPC, procurement of LLTM for the second OPC, and certain other program costs.

FRCs are considerably smaller and less expensive than OPCs. They have an estimated average procurement cost of about $65 million per boat. A total of 44 have been funded through FY2017. The 24 th was commissioned into service on October 31, 2017. The Coast Guard’s proposed FY2018 budget requests $240 million in acquisition funding for the procurement of four more FRCs.The NSC, OPC, and FRC programs pose several issues for Congress, including the following:

  • whether to fully or partially fund the acquisition of a 10th NSC in FY2018;

  • whether to fund the acquisition of four FRCs in FY2018, as requested, or some other number, such as six, which is the maximum number that has been acquired in some prior fiscal years;

  • whether to use annual or multiyear contracting for procuring FRCs;

  • whether to use annual or multiyear contracting for procuring OPCs;

  • the procurement rate for the OPC program;

  • planned procurement quantities for NSCs, OPCS, and FRCs;

  • the cost, design, and acquisition strategy for the OPC; and

  • initial testing of the NSC.

Congress’s decisions on these programs could substantially affect Coast Guard capabilities and funding requirements, and the U.S. shipbuilding industrial base.