Category Archives: contract

“Stage 2 of the Coast Guard offshore patrol cutter moves forward” –CG HQ News Release

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Artists rendering from Eastern Shipbuilding Group

Below is a news release. Just minutes before I saw this, I recieved an email from Jessica Ditto, Eastern’s VP, Communications

As you might have seen, ESG is going to the Court of Federal Claims (COFC) to challenge the OPC stage II award decision. COFC is not an appeal, but a new proceeding that allows ESG to seek the disclosure materials that have been withheld by the government in the GAO protest. Here is our statement:

“The federal procurement process is designed to be fair and transparent. Ordinarily, the government discloses reasonable justification for its award decisions to the attorneys representing the parties in a protest. The government has declined to voluntarily disclose the information that might offer that justification. As a result, we are seeking the information and justification through a different legal pathway,” said Joey D’Isernia, President of Eastern Shipbuilding Group, Inc.

News Release

U.S. Coast Guard Headquarters
Contact: Headquarters Public Affairs

Stage 2 of the Coast Guard offshore patrol cutter moves forward

WASHINGTON — The Coast Guard today issued a notice to Austal USA, the offshore patrol cutter (OPC) Stage 2 contractor, to proceed on detail design work to support future production of OPCs. The Coast Guard issued the notice following the withdrawal of an award protest filed in July with the Government Accountability Office by an unsuccessful Stage 2 offeror.

The Coast Guard on June 30, 2022, awarded a fixed-price incentive (firm target) contract through a full and open competition to Austal USA to produce up to 11 offshore patrol cutters. The initial award is valued at $208.26 million and supports detail design and long lead-time material for the fifth OPC, with options for production of up to 11 OPCs in total. The contract has a potential value of up to $3.33 billion if all options are exercised.

The Coast Guard’s requirements for OPC Stage 2 detail design and production were developed to maintain commonality with earlier OPCs in critical areas such as the hull and propulsion systems, but provide flexibility to propose and implement new design elements that benefit lifecycle cost, production and operational efficiency and performance.

The 25-ship OPC program of record complements the capabilities of the service’s national security cutters, fast response cutters and polar security cutters as an essential element of the Department of Homeland Security’s layered maritime security strategy. The OPC will meet the service’s long-term need for cutters capable of deploying independently or as part of task groups and is essential to stopping smugglers at sea, interdicting undocumented non-citizens, rescuing mariners, enforcing fisheries laws, responding to disasters and protecting ports.

For more information: Offshore Patrol Cutter Program page.

“Eastern Shipbuilding protesting Austal’s cutter win, cites ‘unfair competitive advantage’” –Breaking Defense

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Future US Coast Guard’s Heritage class cutter Argus (Picture source: Eastern Shipbuilding Group)

Breaking Defense reports,

WASHINGTON: Eastern Shipbuilding Group is formally protesting a Coast Guard shipbuilding contract potentially worth billions that was awarded late last month to Austal USA, in part due to what ESG claims was an “unfair competitive advantage and conflict” among other issues.

This may further delay this much delayed program. Can’t help but wonder if OPC #1, the future USCGC Argus, will be delivered before the end of FY2022 as it had been scheduled. If not, it is going to undermine Eastern’s case as to their own competence.

Thanks to Lee for bringing this to my attention. 

Contract Option for Second Polar Security Exercised

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DOD reports a contract option for design and construction of the Second Polar Security Cutter has been exercised. Notably this is a Navy contract. Completion expected Sept. 2026.

VT Halter Marine Inc., Pascagoula, Mississippi, is awarded a $552,654,757 fixed-price incentive modification to previously awarded contract N00024-16-C-2210 to exercise an option for the detail design and construction of the second Coast Guard Polar Security Cutter. Work will be performed in Pascagoula, Mississippi (61%); Metairie, Louisiana (12%); New Orleans, Louisiana (12%); San Diego, California (4%); Mossville, Illinois (4%); Mobile, Alabama (2%); Boca Raton, Florida (2%); and other locations (3%), and is expected to be completed by September 2026. Fiscal 2021 procurement, construction, and improvement (Coast Guard) funds in the amount of 485,129,919 (80%); fiscal 2020 procurement, construction, and improvement (Coast Guard) funds in the amount of $100,000,000 (17%); and fiscal 2019 procurement, construction, and improvement (Coast Guard) funds in the amount of $20,000,000 (3%) will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Thanks to Paul for bringing this to my attention.

Coast Guard Special Purpose Craft Law Enforcement Generation II (SPC-LE II)

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Photo: Not positive, but this seems to be the boat we are talking about. 

The DOD recently announced a boat contract, awarded through the Navy, that involves boats for the Coast Guard (you have to look pretty far down to find it).

Silver Ships Inc.,* Theodore, Alabama, was awarded an $8,239,095 firm-fixed price, indefinite-delivery/indefinite-quantity single award contract (N00024-21-D-2205) for design and construction of up to 110 Navy 8-meter and 11-meter Surface Support Craft and Coast Guard Special Purpose Craft Law Enforcement Generation II (SPC-LE II). Work will be performed in Theodore, Alabama, and is expected to be completed in August 2023. This contract includes options which, if exercised, would bring the cumulative value of this contract to $51,663,787. Fiscal 2020 other procurement (Navy) funds in the amount of $3,242,628 (39%); fiscal 2021 other procurement (Navy) funds in the amount of $3,187,680 (39%); and fiscal 2021 other procurement (Coast Guard) funds in the amount of $1,808,787 (22%) will be obligated at time of award and will not expire at the end of the current fiscal year. This contract is a small business set-aside. This contract was competitively procured via the beta.sam.gov website, with four offers received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Awarded Sept. 30, 2021)

This is Silver Ships’ announcement.

This appears to be the boat the Coast Guard will be getting. The Coast Guard will get the “Open Center Console (Open) variant.”

Each boat will use three outboards. These are the engines specified in the contract.

Thanks to Paul for bringing this to my attention. He also provided the following that gives more detail: 

C-1 PART 1 – GENERAL STATEMENT OF WORK

This Statement of Work (SOW) defines the effort required for the, design, construction, testing, configuration control, documentation, and program management for the acquisition of the 8m variant,11m variant of the Naval Special Warfare (NSW) Surface Support Craft (SSC) and the United States Coast Guard (USCG) 11m variant (Special Purpose Craft Law Enforcement).

C-1.1 BACKGROUND

The 8m variant and 11m variant NSW SSC boats operate from inshore littorals to blue water, over the horizon locations, in and up to moderate sea states (NSW) in widely diverse climatic conditions (tropical to arctic). They provide over-watch and coverage for diverse NSW waterborne operations, such as: transit for at sea personnel, water parachute jump, diving, surface swimmer support, medical evacuation and command, control, communications, computers, and intelligence duties. The SSCs also provide support for all NSW garrison locations and allow NSW to certify units for deployment in support of Navy and COMNAVSPECWARCOM requirements.

The USCG will use the 11m SSC variant to conduct counter-smuggling, search and rescue (SAR), recreational boating safety (RBS), and ports and waterways coastal security (PWCS) missions and will operate in higher sea states than the USN variants.

All boat variants are desired to provide comparable to enhanced performance of current capabilities while focusing on commonality to maintain reduction in Total Ownership Costs (TOC).

The NSW SSC requires two configuration variants of the 8m and 11m, Open Center Console (Open) and Enclosed Cabin (Cabin), to support mission needs.

The USCG requires the 11m Open Center Console (Open) variant to support mission needs.

C-1.2 QUANTITIES

The resulting contract will be a 5-year Indefinite Delivery, Indefinite Quantity (IDIQ) contract for an estimated one hundred and ten (110) total craft. The initial award is for an estimated fourteen (14) boats.

C-2.2.1 Boat – The Contractor shall provide the boat and trailer in accordance with the Specification

(Attachment 1).

C-2.2.2 UID – The Contractor shall provide UIDs for each boat in accordance with Attachment 6.

C-2.2.3 Boat Specific Technical Data Package (TDP) – The contractor shall provide for each boat one (1) hard copy and one (1) electronic copy (CD/DVD) of the Final 11m OPEN USCG Variant TDP developed under CLIN 1022 specific to each boat.

C-2.2.4 Mercury Verado Engines– The Contractor shall provide three (3) Mercury Verado engines per boat in accordance with the Specification (Attachment 1). The Contractor shall complete the engine break-in in accordance with the Specification (Attachment 1) as part of the boat CLIN.

C-2.14 CLIN 1014 AND IF EXERCISED, CLINs 2014, 3014, 4014 AND 5014 – SHIPPING – USCG

STATION SAN DIEGO, CA and also USCG STATION SOUTH PADRE ISLAND, TX;  USCG STATION MIAMI, FL; USCG MARITIME LAW ENFORCEMENT ACADEMY, CHARLESTON, SC.

The Contractor shall deliver the boat to the location specified in Section F (Deliveries or Performance) and in accordance with Section C, Part 3. Items not integrated into the boat shall be wrapped in protective packaging or container and shall be shipped to the same location either with the boat or via separate shipping.

C-2.18 CLIN 1018 AND IF EXERCISED CLIN 4018 – CREW FAMILIARIZATION (USCG) SAN DIEGO (and the locations listed above)

The Contractor shall provide crew familiarization and training for USCG personnel at San Diego, CA. Crew familiarization shall include craft operations, main equipment operations and maintenance. This shall include Contractor and/or OEM training and component change out for engines, electrical, and HM&E systems. At a minimum training shall be two (2) full days at End User‘s location for up to ten (10) students. The Contractor shall provide all training materials.

“Coast Guard releases request for proposal for offshore patrol cutter follow-on detail design and production” –CG-9

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Artists rendering of the future USCGC Argus, from Eastern Shipbuilding Group

The following is reproduced from the Acquisitions Directorate announcement: Interesting to look though some of the linked documents. Shows how complex contracting has become. 

Feb. 1, 2021 —

The Coast Guard released a request for proposal (RFP) Jan. 29 for detail design and production of up to 11 offshore patrol cutters (OPCs). The RFP is available here. The competition is open to all interested offerors.

Establishing a new, full and open competitive environment for the OPC program is a key component of the Coast Guard’s strategy to recapitalize its offshore surface capabilities. The RFP was informed by extensive industry engagement, including contracted industry studies with eight U.S. shipyards, an invitation to review and respond to a draft RFP and the establishment of an OPC technical library. The OPC technical library provides updated design information that reflects the current state of OPC acquisition activities to potential offerors.

The deadline to submit responses to the RFP is May 28, 2021. Contract award is scheduled to occur in the second quarter of fiscal year 2022.

The OPC acquisition program meets the service’s long-term need for cutters capable of deploying independently or as part of task groups, and is essential to stopping smugglers at sea, interdicting undocumented migrants, rescuing mariners, enforcing fisheries laws, responding to disasters and protecting ports and waterways. The acquisition of up to 25 OPCs will complement the capabilities of the service’s national security cutters, fast response cutters, and polar security cutters as an essential element of the Department of Homeland Security’s layered maritime security strategy.

For more information: Offshore Patrol Cutter program page

“Coast Guard Modifies Contract to Construct Second Offshore Patrol Cutter, Acquire Long Lead-Time Material for Third Offshore Patrol Cutter” –CG-9

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Above: Artists rendering from Eastern Shipbuilding Group

Contract for the Second Offshore Patrol Cutter, the future USCGC Chase, and long lead time items for the third. Presumably this is a contract modification, rather than the  exercise of a contract option, because the price is higher than the original option. Still this does not look a great deal higher than the previous contract ($317.5M), for the first OPC and long lead time items for the second. Following from the Acquisitions Directorate, CG-9:

The U.S. Coast Guard modified its contract with Eastern Shipbuilding Group (ESG) April 2 to begin construction of the second Offshore Patrol Cutter (OPC) and to acquire long lead-time material (LLTM) for the third OPC. Contract delivery of the second OPC, to be named Chase, is scheduled to occur in 2023.

The total value of the construction and LLTM orders is $343 million. In addition to ordering construction of the second OPC, this contracting action also covers the initial order of components and materials necessary to support the future construction of the third OPC by acquiring propeller and steering components, marine diesel engines, the ship integrated control system, switchboards, and generators.

The lead OPC is currently in production at ESG’s shipyard in Panama City, Florida.  Production of the lead cutter, Argus, commenced January 7, 2019. Delivery of Argus is scheduled for 2022.

The OPC meets the Service’s long-term need for cutters capable of deploying independently or as part of task groups and is essential to stopping smugglers at sea, interdicting undocumented migrants, rescuing mariners, enforcing fisheries laws, responding to disasters and protecting our ports. The acquisition of 25 OPCs will complement the capabilities of the Service’s National Security Cutters, Fast Response Cutters and Polar Security Cutters as an essential element of the Department of Homeland Security’s layered security strategy.

For more information: OPC program page