Building a 21st Century Infrastructure for America: Coast Guard Sea, Land, and Air Capabilities–House Subcommittee Hearing

 

The hearing recorded above was held 7 June. The original video was found here. That page also provides the chairman’s opening statement and links to the witnesses’ written statements that are also provided immediately below. The video does not actually start until time 4:30.

Below, you will find my outline of the highlights.

Witness List:

  • Vice Admiral Charles W. Ray, Deputy Commandant for Operations, United States Coast Guard | Written Testimony
  • Vice Admiral Sandra L. Stosz, Deputy Commandant for Mission Support, United States Coast Guard | Written Testimony Ms. Marie A. Mak, Director, Acquisition Sourcing & Management Team, Government Accountability Office | Written Testimony
  • Mr. John Acton, Chairman, Coast Guard Affairs Committee, Navy League of the United States | Written Testimony

The GAO’s written testimony is particularly comprehensive. They report that new assets (NSCs and FRCs) are not meeting planned availability. There have been an unexpected number of engine replacements. In the case of the National Security cutters it appears to me the down time was predictable, a normal part of introducing new ships and availability should return to planned levels as more ships join the fleet. The known defect, that when operating in waters 74 degrees or warmer, the NSCs cannot maintain maximum speed has apparently not been corrected. Max speed must be reduced two to four knots to allow adequate cooling.

Planning Documents:  The Congressional Representatives repeatedly complained that they were not getting an unsensored statement of the Coast Guard’s needs. It appears the Coast Guard is not being allowed provide this information. Rather it appears the GAO is telling the Coast Guard how much they will be getting and told to submit a budget that fits the predetermined amounts. Reportedly the Unfunded priorities list will be provided by the end of June. They also asked for the 5 year and 20 year plan (1h04:30). Coast Guard representatives were repeatedly told the Coast Guard does not say what they really need, that information provided by the Coast Guard is inadequate for the sub-committee to make decisions (1h48m).

It appears that the GAO continues to ask the Coast Guard to plan procurements based on historically low AC&I appropriations that were adequate for a time because of the sporadic character of Coast Guard ship building. They acknowledge that the current budget is not realistic. (43:45)

The Coast Guard is now consistent in requesting $2B in the AC&I annually and a 5% annual increase in its operating budget and that we need 5,000 additional active duty billets and 1,100 addtional reservists. There was a statement from one of the Representatives to the effect, We need you to fight for yourselves (1h50:30). The representatives were informed that the 5 year, 20 year plans and unfunded will be delivered together (1:56)

My opinion: we need a regularly revised Fleet Mix Study. That in turn should feed directly into a 30 year ship and aircraft procurement plan

Webber Class WPCs: The Coast Guard is reportedly pushing WPCs operations down as far as the coast of South America. (50:00) This confirms my earlier speculation that these ships would be operated in what had been WMEC roles. Six cutters for CENTCOM The representative confirmed that they had approved procurement of six Webber class requested by CENTCOM. Apparently their approval was in the form of the Coast Guard reauthorization bill which has still not been made law. Adm. Ray stated that these would be in addition to the 58 currently planned (9:30) and it is not clear how or when they would be funded. Adm Stosz indicated it was not certain six Webber class would be the Coast Guard’s choice in how to fill this requirement and the question required more study. (1h11)(1h41m).

Shore Facilities: Reportedly there is a $1.6B shore construction backlog. $700M shore facilities maintenance backlog. Some infrastructure improvements that directly support new operational platforms.are being accomplished under the platform programs (55:00) The representatives asked, why we have asked for only $10M if the total shore facilities backlog is $2.3B?(1h35)

Icebreakers: The possibility of leasing the commercial icebreaker Aiviq is still being considered. (1h27) The owners have offered a plan for Ice trials and the Coast Guard has said it would be interested in observing. (1h29:50)

Great Lakes Icebreaker: Rep. Lewis brought up icebreaker for Great Lakes.Adm Ray says for now we will address with the existing fleet. (1h00:30) Priority is still Polar Ice Breakers.

eLoran: There seems to be considerable interest in eLoran to deal with GPS vulnerabilities. (1:22) The Navy League representative supported the need. The Re-Authorization Bill directs Secretary of Transportation to initiate E-Loran testing. There was a clear anticipation that the Coast Guard would support implementation.

Coast Guard Health Care: Looks like the Coast Guard heath care records system which reverted to paper now may be able to piggy back on the VA’s conversion to the DOD system. (1h25)/(1h32:30) There is currently a major gap in funding for medical care of CG retirees

A Better Armed Coast Guard: Not that the Representatives were specific, but there was a statement, “We want to weaponize you.” (5:55) I think I heard essentially a second time as well. I’m not sure what that means.

Rising Sea Levels: There was concern expressed regarding rising sea level and how they might impact shore facilities (1h12:20)

WMEC Service Life Extension: The Coast Guard was given money several years ago to plan a service life extension program for 270. The Congress has not seen or heard any result and they questioned, why delay? (1:09) See fig. 4 on page 17 of the GAO’s written testimony

Operating Expenses: Replacement ships are costing more.(26:25)(50:55). This is becoming problematic without an increase in operating budget.

Changing the way we buy ships: Included in the Reauthorization Bill are changes in the way the Coast Guard can fund its shipbuilding, putting us on par with the Navy (5:50)

Cyber: Budget includes 70 additional billets. (19:45)  What are we doing for the ports? (1h13:45)

Inland Tender Fleet: Budget includes $!M to investigate alternatives. (52:30) (1h19)

It is remarkable that there seemed to be no sentiment that the Coast Guard budget should be cut, while there was considerable evidence the Representatives believe the Coast Guard is underfunded.

Hull Vane Claims Improved Performance

“Wake behind transom on patrol boat at 11 kn without Hull Vane® (left) and with Hull Vane® (right), leading to 25% lower fuel consumption”

NavyRecognition reports on Hull Vane’s presentation at the MAST-Asia 2017 Conference.

The new NSCs and FRCs are costing more to fuel than the ships they replace. The OPCs will almost certainly cost more in fuel than the 210s and 270s, they will be replacing. This should not be surprising. These ships are larger and have much greater installed horsepower. Since our operating budget has not been growing, the greater fuel used, as more of these ships come on line, is going to become a problem. Surely we will try to get increased operating funding, but in the mean time we need to work on operating more economically.

If we have not already evaluated this design modification, we probably should.

In addition to fuel savings, addtional side benefits are claimed.

While reducing the energy consumption is usually the main goal, the Hull Vane® has additional effects which are very desirable for naval ships. When a ship sails in waves, the Hull Vane® dampens the pitching and yawing motions, making helicopter landings safer and improving the performance of onboard systems and personnel. As the Hull Vane® reduces the stern wave, the propeller loading and the engine power for a given speed, the ship will also have a reduced acoustic (and visual) signature. On newbuild naval ships, the cost savings on engine power to reach a given speed are generally much higher than the cost of the Hull Vane. Retrofitting a Hull Vane® on existing naval ships typically has a payback period of one to three years.

We did discuss this innovation earlier. I am going reproduce comments from my previous post on this topic.

First a disclaimer: I am from the Hull Vane sales team and I have presented the paper at the FAST conference. You can download a copy of this paper on our website (www.hullvane.com) from the news section. That will clarify a lot.

Then to answer some of the comments here (and the email quoted, which is not from our team as far as I know):

1. The Hull Vane is very different from a trim tab, because it’s a hydrofoil. Actually the design is not so much speed-dependent, but hull-shape dependent. When it works, it works on quite a wide speed range, as long as the speed is high enough (Froude number in general above 0.2). On the Holland-Class, we achieve a positive result over the entire speed range (from 5 knots to 22 knots), but that’s in part because the Hull Vane allowed (and actually required) a reduction of the depth of the trim wedge which is currently installed.

2. The Hull Vane is a new and patented fuel saving device. Of course hydrofoils have been used before, but never on displacement vessels with the purpose of generating forward thrust and reducing the wavemaking resistance.

3. The angle of attack is more a function of the buttock angle of the bottom plating than it is of the speed. That’s why having an adjustable Hull Vane (we looked at it) gives you a very marginal performance increase, while adding a lot of complexity (hydraulics, control mechanism, maintenance, etc.). The fixed Hull Vane works really well and is not more complex than bilge keels or a bulbous bow. The design is indeed complex and requires both know-how and accurate CFD simulations, taking into account both frictional and pressure drag. From our 12+ years of experience, we know how to get it right, but we also know that it’s very easy to get it wrong. There are ship types where we can’t achieve a positive result, but on patrol vessels and naval vessels, we have consistently achieved very good results.

4. Just like the rudders, and propellers, you indeed want to avoid marine growth, which has a more detrimental effect on appendages than on the main hull. There are solutions to this (coatings), and furthermore the Hull Vane is easily accessible for cleaning without drydocking. On the vessels sailing with the Hull Vane, marine growth has not been an issue.

5. Regarding our “limited abilities to accurately predict the flow field below and aft of a bluff transom vessel”, I completely disagree on that. Our parent company Van Oossanen Naval Architects has used CFD (Fine/Marine) for many years with excellent results, confirmed both by model tests and sea trial results. This includes the results we have obtained for the Hull Vane performance. For stuff like the Hull Vane, where viscous effects (and the thickness of the boundary layer) are important, we believe CFD to be more accurate than model tests.

6. The Hull Vane is not limited to “short fat frigate territory”. We have achieved good results also on the DTMB 5415, a slender destroyer hull shape released for research purposes. The performance is better however on the fuller-bodied and wider-transomed hull shapes like the typical US Coast Guard cutters, which we would very much like to do some work on.

To sum it up briefly, the Hull Vane is very comparable with the bulbous bow, although it looks totally different. If the bulbous bow hadn’t been applied as widely as it is, people would also find it hard to believe that it can reduce the resistance. The bulbous bow also requires careful design to work well and has a speed range in which it works well. One of the main advantages of the Hull Vane is that it also improves the seakeeping (reduced pitching, heaving, yawing and rolling). There’s a video on our website explaining the working principles very clearly. If you have any questions, don’t hesitate to contact me.

What’s in a Name

The program currently stands at 23 vessels delivered with 22 commissioned. They are being delivered at a rate of 5 per year meaning the last of 58 planned should be commissioned by the end of FY2024. 

MarineLink has a story about Bollinger and their production of the Webber class WPBs. I found this particular paragraph interesting.

Making it Personal
To help combat complacency Bollinger came up with the Sentinel Program, to both incentivize its shipbuilders and to make each vessel more meaningful to them. “Each of these vessels is named for a hero in the Coast Guard,” Remont said. For every vessel Bollinger creates a name board, a 4 x 3 board that describes the ship’s namesake with details of their heroic act. “What we’re trying to do is personalize it for our shipbuilders. It’s not just some big hunk of metal with a bunch of cables, it (the ship) is there for a real reason. We erect these sign posts at each station where the vessel is getting created, and the name board follows the ship, traveling with the boat as it moves through the production line. “Every time our shipbuilders get on that vessel they can read about the person, and understand why we are building it.” When the vessel is delivered the name board is given to the CO of the boat so that they and the crew can be reminded of the namesake, too. Following the delivery ceremony, Bollinger selects one employee from each department who exhibits the same characteristics of the vessel’s namesake, and they are publicly recognized and awarded.
 –
This points to yet another reason the decision to name these cutters after Coast Guard heroes was a good one. I knew it would mean something to the crew, but apparently it means something to put a human face on the ships, even to the shipyard works, and perhaps to others that come in contact with the ships. It also teaches Coast Guard history in easily digestible bits.
 –
Hopefully we will continue with this when we name the Offshore Patrol Cutters. I don’t think we could do better than name the first of class for the captain of the Revenue Cutter Hudson during the Spanish-American War, Frank H. Newcomb. There has never been a cutter named after him, and the honor is long overdue.
Newcomb02

Frank H. Newcomb

Interview: Adm. Paul Zukunft demands Coast Guard respect–Defense News

DefenseNews had an interview with the Commandant. You can read it here. I will not repeat the Commandant’s responses here, but I will repeat one of the questions and add my own thoughts.

Admiral, you have said that the Coast Guard’s identity as an armed service is forgotten. Can you tell me what you mean by that?

The Commandant talks here about budget, but I think this starts with self image. We do SAR. We rescue sea turtles. Armed services are first and foremost ARMED. We are by law a military service, but we are currently inadequately armed for even our peacetime counter terrorism, DHS mission. We are less capable of forcibly stopping a ship than we were 90 years ago.

Do our people know what their role will be if there is a major conflict with the Chinese or Russians? You can bet Navy and Marine Personnel have a pretty good idea of their roles.

We have had a quarter century hiatus in a mono-polar world where no one could challenge American seapower. That is changing rapidly and it is time for the Coast Guard to see itself in a new light. Just as the nation has benefited from having two land forces (Army and Marines), it can benefit from having two sea forces. The Coast Guard is a substantial naval force. Certainly we will not replace the Navy’s sophisticated systems, but there is a need for a high low mix and the marginal cost of adding capability to Coast Guard vessels that are going to be built anyway is very small.

We are currently in an unrecognized naval arms race with China. It is time to give the Coast Guard back the ASW and ASuW capabilities it was building before the collapse of the Soviet Union.

When I reported to the academy in 1965, it had a gun lab, and we were taught ASW (badly) during swab summer. The Coast Guard had 36 ships equipped with sonar, ASW torpedoes and 5″ guns. The ships were old (not as old as now), but we were building a new fleet of 36 Hamilton Class WHECs equipped with a better sonar in addition to torpedoes and a 5″ gun. Being armed did not stop us from doing SAR, fisheries, or aids to navigation.

At that time (1965) in terms of personnel, the US Navy was about 25 times larger than the Coast Guard and had 287 cruisers, destroyers, and frigates. Now it is only eight times as large as the Coast Guard and has only 85 ASW equipped surface ships. We also had a powerful naval ally in Europe in the form of the Royal Navy. Now the Coast Guard is supplying personnel to the Royal Navy and in terms of personnel the Coast Guard is larger than the Royal Navy or the French Navy. Equipping our planned 33 to 35 large cutters as true surface combattants could make a real difference.

Even if we never go to war, preparation can make us better at our peacetime roles. Drug interdiction, migrant interdiction, and even SAR benefit from military grade ISR and C4I. Recognition of naval capabilities in the Coast Guard may justify additional resorces that have dual use for peacetime missions. Its a win-win.

 

FY2018 Budget Request

The Homeland Security “FY2018 Budget in Brief” has been published. You can see it in pdf form here.

The Coast Guard portion is on pages 44-48. The breakdown of the elements of the Coast Guard budget request are on page 47.

The total DHS budget request is $70,692,491,000. Of that, the Coast Guard portion is 15.1%. The DHS request is 7.1% greater than the FY2017 annualized continuing resolution. By comparison, the Coast Guard request is down 2.4%.

Highlights of the Coast Guard budget request noted include:

(“FTE refers to personnel changes. They are “Full Time Equivilents”)

  • Offshore Patrol Cutter (OPC) ……………………………………. $500.0M, 0 FTE Provides funding to begin construction of the first OPC, which is scheduled for delivery in 2021. The OPC will replace the Medium Endurance Cutter classes that conduct missions on the high seas and coastal approaches;
  • Fast Response Cutter (FRC)……………………………………….$240.0M, 0 FTE Funds procurement of four FRCs. These assets replace the less capable 110-foot patrol boats, enhancing the Coast Guard’s coastal capability to conduct Search and Rescue operations, enforce border security, interdict drugs, uphold immigration laws, prevent terrorism, and enhance resiliency to disasters;
  • Polar Icebreaker ……………………………………………………. $19.0M, 0 FTE Continues efforts toward awarding a contract for detail design and construction in 2019. This acquisition is recapitalizing the Coast Guard’s heavy polar icebreaker fleet;
  • Inland River and Western Rivers Tender ……………………….. $1.1M, 0 FTE Supports exploratory activities to analyze potential options to replace the capabilities provided by an obsolete fleet of inland tenders and barges commissioned between 1944 and 1990;
  • C-27J ………………………………………………………………… $52.0M, 0 FTE Funds support continued activities of the C-27J Asset Project Office (APO), which organizes logistics, training development, maintenance support, and ensures that these newly acquired aircraft are ready for induction into the operational fleet. Continues funding for initial spares and logistics, training, and mission system development;
  • Pay and Allowances……………………………………………….$109.8M, 0 FTE Maintains parity with DOD for military pay, allowances, and health care, and for civilian pay raise and retirement contributions, including providing a 2.1 percent military and 1.9 percent civilian pay raise in FY 2018. As a branch of the Armed Forces of the United States, the Coast Guard is subject to the provisions of the National Defense Authorization Act, which include pay and personnel benefits for the military workforce;
  • Operating and Maintenance of New Assets……………………$98.6M, 233 FTE Increases funding for operations and maintenance of shore facilities and provides sustainment funding for new cutters, boats, aircraft, and associated C4ISR subsystems delivered through acquisition efforts;
  • Mission Essential Systems and Cyber Security …………… ……$26.2M, 2 FTE Funds sustainment of critical Coast Guard network infrastructure and pays DOD working capital fund increases necessary to comply with DOD information network and cybersecurity requirements; and
  • Workforce Support Improvements ………………………………….$9.1M, 34 FTE Provides funding and personnel to manage the new Blended Retirement System, increase the frequency of Personnel Security suitability background investigations, and enhance capabilities to handle sexual assault allegations.

FY 2018 Major Decreases:

  • Decommissioning of Legacy Assets…………………………. ($14.1M) (129 FTE) Decommissions one 378-foot high endurance cutter, three 110-foot patrol boats, and one HC-130H aircraft in line with the Coast Guard decommissioning plan; and
  • Management and Support Efficiencies ………………………. ($13.9M) (13 FTE) Reflects savings generated from an enterprisewide efficiency review that can be taken with no direct operational impacts and a minimal loss of current service delivery

This is neither the disastrous cuts that were talked about earlier, nor is it a substantial boost. While less than the FY2017 budget as ultimately funded, it compares favorably to the initial FY2017 request. If the Congress does what it has done in the past, and adds some to the AC&I budget, we may feel this is a better than workable budget.

Compared to the enacted FY2017 budget, Operating Expenses are up $333,772,000 while AC&I is down $720,382,000. Hopefully the Congress will bump this up to nearer what we need annually, about $2B. I would be very surprised if the Congress does not increase the Fast Response Cutter buy from four to six, and NSC#10 and another C-130J are possibilities.

Hearing: Coast Guard Requirements, Priorities, and Future Acquisition Plans (FY-2018)

 

May 18, the Commandant, Admiral Paul F. Zukunft, addressed the House Appropriations Homeland Security Subcommittee. The recorded testimony is above. It is fairly long (1h40m). The Commandant’s initial statement, following the introductions, begins at 8m40s and ends approximately minute 14.

The administration’s FY 2018 budget request was not available, but the Commandant was there to discuss future priorities, requirements, and programs. The Department Secretary, General Kelly, is expected to address the Subcommittee on May 24 at 3PM Eastern.

I will just mention a few of the items I thought significant.

Admiral Zukunft noted that Huntington Ingalls has begun cutting steel for NSC #9. Questioned about NSC#10, he said, if it were funded, the Coast Guard would of course use it, but that the Offshore Patrol Cutter (OPC) is the Coast Guard’s #1 priority. His response, that another NSC would have an effect on long-range operating cost, seemed to suggest anticipated significantly lower operating costs for the OPC. Significantly, there has been no mention of reducing the OPC program by one ship to offset the addition of NSC #9. (There is already a strong push to build more NSCs, a bill to authorized a multi-year buy of three more.)

He contended that the Coast Guard has taken a harder hit, due to budget restrictions, than other armed services and would need 5% annual growth and at least $2B annually for Acquisitions, Construction, and Improvements (AC&I). Later he stated that this annual AC&I appropriation would included about $300M annually for shore facilities. He pointed to a need to restore 1100 Reserve Billets and add 5,000 active duty military billets while retaining current levels of Civilian staff.

Apparently the FY2918 budget will begin a program to replace 35 Inland tenders at an estimated cost of approximately $25M each ($875M total). (Even if, in the unlikely event, this program were funded in only five years, that would only average $175M/year, so it is not a big program, but one that should have begun at least a decade ago.)

Cyber security for ports was discussed. The Commandant sees the Coast Guard role as decimating best practices, rather than imposing regulation. We now have a cyber program of record–still very small, two CG Academy graduates going directly into the program. The fact that two billets is worth mentioning, is probably the best indication of how really small the program is. A much smaller pre-World War II Coast Guard probably had more people working on breaking German and Japanese codes. 

Marine Inspection was addressed. The Commandant noted the increased demand for Inspections because 6,000 tugs have been added to inspection program. He noted a need for more stringent oversight of 3rd party inspectors, who in some cases have not been as meticulous as they should have been. He also noted that the US flag merchant fleet, notably the MSC’s Afloat Prepositioning Fleet, will need replacement, which will also raise demand for marine inspectors.

The Commandant also voiced his support for the Jones Act. He noted, we only have three shipyards building Jones Act ships in the US, and their loss would be short-sighted.

There was much discussion about the Arctic and the Icebreaker Fleet. Looks like follow-on funding for icebreaker program (at least after the first) will have to come from CG AC&I rather than the Navy budget. This may be difficult, but it is the way it should be. The chair of committee expressed his reservations about attempting to fund such big-ticket items through the DHS budget. The Commandant stated that the Coast Guard is still considering the acquisition of the commercial Icebreaker Aiviq (but apparently they are doing it very slowly–the chairman of the committee seemed a bit irritated about this).

The committee members seemed to latch onto the idea that the USCG, rather than the Navy, would be responsible for enforcing US sovereignty in the Arctic (which by US definition includes the Aleutians), and seemed to be asking if the Coast Guard was prepared to fight the Russians and/or Chinese in the Arctic. The Commandant suggested instead, that our role was to provide presence in the pre-conflict phase in order assert US sovereignty. He acknowledged that the National Security Cutters are only armed defensively and are not suitable for conventional naval warfare against an enemy combatant.

The Commandant acknowledged that, at some point it may be desirable to arm Polar Icebreakers, meaning they should be built with space, weight, and power reservations for additional weapons.

(I am all for keeping open the option of arming our icebreakers, so that they can defend themselves and do their part, if there is a conflict in a polar region, but there did not seem to be recognition among the Congression Representatives, that an Arctic conflict is most likely to be determined by submarines and aircraft. The icebreakers’ role is likely to be primarily logistical.)

The Commandant apparently does expect that there may be disagreements with regard to the extent of the US authority over certain areas of the Arctic.

In discussing the need for land based Unmanned Air Systems, there was a curious note at minute 40 about go-fast boats going south. Where are they going?

Alien Migrant Interdiction (AMIO). We have gone for seven weeks without a single Cuban Migrant being interdicted. This is because of the end of Wet Foot/Dry Foot Policy. This has allowed reallocation of resources to drug interdiction South of Cuba and human trafficking from the Bahamas

A Congressional Representative, from Texas pointed out there is no CG presence on the Rio Grande River, in spite of it being an international waterway. There was no mention of it, but perhaps he was thinking of the Falcon Lake incident in 2010 when an American was allegedly shot in the head by Mexican drug runners. Maybe something we should reconsider.

The Commandant promised the CG would have an unfunded priority list for FY2018.

The 2017 Budget

It seems a bit late to talk about the FY2017 budget, but here we are, eight months into the FY, and it is finally signed into law. This is a bit rambling, forgive me, but that is the budget process.

The Coast Guard’s description of the Obama administration’s original budget request is here. It is fairly detailed, but now obsolete.

A short summary of the Coast Guard budget, as part of a summary of the Department budget, contained in the Omnibus bill is here. It is quoted in full below.

Coast Guard – The bill contains $10.5 billion for the U.S. Coast Guard – an increase of $344 million above the previous Administration’s request and a decrease of $467.3 million below the fiscal year 2016 enacted level. Specifically, the bill:

  • Provides 1.6 percent military pay increase;

  • Provides $7.1 billion for operations and training, military personnel costs, aviation and cutter hours, and to reduce a maintenance backlog that can hinder readiness and response; and

  • Provides $1.37 billion – $233 million above the request – for modernization and recapitalization of vessels, aircraft, and facilities. This includes funding for the Polar Ice Breaking Vessel program, the acquisition of an Offshore Patrol Cutter, an HC130-J aircraft, six Fast Response Cutters, and facility improvements at multiple locations throughout the United States.

The good news here is that the Coast Guard will not see a dramatic cut to pay for “the Wall.” The bad news is that the total budget is down over $600M from the FY2016 enacted budget (I know this is different from the summary above, but that is what I got), most of which is an approximately $580M cut in AC&I which included NSC#9.

There is actually a small increase in operating budget from last year and from the initial budget request, a bit over $100M.

There is a pleasant surprise in the notes explaining budget reductions in the Coast Guard’s explanation of the initial budget request:

“National Security Cutter Energy Efficiency -$13.5M

(O FTE) Reflects savings from a re-calculation of National Security Cutter (NSC) energy costs based on observed energy expenditures during NSC operations, without impacting the ability to carry out those operations”

Apparently the big cutters are not costing a much to fuel as we expected. I suppose this could just reflect current oil prices.

There is also a note that there will be a permanent increase in the crew size for all NSCs.

You can see the actual bill here (pdf), the Coast Guard budget is on pages 28-32.

Unexpected items in the Operating Budget

  • Additional $4.49M for Cyber
  • $5M for the CG museum

Reserves: A total of$112,302,000 is provided for Reserve Training.

The AC&I Budget includes:

  • $2M for design work on Great Lakes icebreaking capacity
  • $1M for design work on Inland AtoN fleet
  • $99M for Shore and AtoN (Almost doubles original request of $51.1M) 
  • National Security Cutter. A total of $255,400,000 is provided for the National Security Cutter (NSC) program. The total includes $95,000,000 for procurement of long lead time materials associated with a tenth National Security Cutter, and $3,400,000 for post-delivery activities for the ninth NSC. In addition, $30,000,000 is included to support a necessary Structural Enhancement Dry-dock Availability (SEDA) for the second NSC.
  • $325M for six FRC (rather than four for $240M in the original request)
  • $55M total for the Polar Icebreaker program.
  • $90M for a missionized C-130J
  • $44.52M for shore facilities
  • Major Acquisition Systems Infrastructure. A total of $50,000,000 is provided, including $22,000,000 to support the Coast Guard’s plan to homeport OPCs in the arctic region to replace aging assets.
  • A total of $36,319,000 is provided for Research, Development, Test, and Evaluation (RDT&E). Includes $18M to evaluate long range shore based Unmanned Air Systems.

There is a change in ship procurement policy:

“The policy requiring the Coast Guard to obtain appropriations for the total acquisition cost of a vessel, including long lead time materials, production costs, and post-production costs, before a production contract can be awarded has the potential to create shipbuilding inefficiencies, force delays in the obligation of production funds, and require post production funds far in advance of when they will be used. The Office of Management and Budget is expected to give the Coast Guard the flexibility to acquire vessels, including the Offshore Patrol Cutter (OPC), in the most efficient manner within the guidelines of strict governance measures.”

Funding for Coast Guard OCO/GWOT activities ($162.7M) is provided directly through the Operating Expenses appropriation instead of through the Navy’s Operation and Maintenance account.

There are some requirements incorporated in the law.

“Not later than 90 days after the date of enactment of this Act, the Coast Guard shall brief the Committees on plans, including a funding strategy,  for improving the cybersecurity posture of the Coast Guard and balancing requirements of operating within the “.mil” domain while adhering to DHS cyber directives.”

“The Coast Guard is directed to submit to the Committees a Capital Investment Plan (CIP) for fiscal years 2018 through 2022 by June 30,2017.”

“The Coast Guard is directed to move quickly in approving additional Ballast Water Management Systems (BWMS)and shall work with the Environmental Protection Agency to reexamine whether the most probable number method can be used as an alternative for testing the effectiveness of treatment systems. The Coast Guard is further directed to brief the Committees on the status of its BWMS testing efforts as set forth in the House report.”

“Not later than 180 days after the date of enactment of this Act, the Secretary shall submit to the Committees a report on the Coast Guard’s plans to ensure long-term search and rescue coverage for the Arctic. This report shall also address the Coast Guard’s capability for conducting response missions throughout the Western Alaska Captain of the Port Zone, including the Bering Sea and Arctic Ocean. The report shall provide details on pollution response equipment; spill response organizations; spill prevention and mitigation methods; and response partnerships with federal, state, and local entities.”

“The Coast Guard is directed to brief the Committees not later than 30 days after the date of enactment of this Act on any changes expected in the funding requirement for OCO/GWOT activities during fiscal year 2017. Further, the Coast Guard is directed to include details of its current and future support to Central Command in the classified annex of the fiscal year 2018 budget request.”

“Under the new strategy, the IPO (Icebreaker Project Office–Chuck) will obtain detailed industry feedback through trade-off analyses to further refine and validate operational requirements. A report on polar icebreaker requirements, preferred design, overall acquisition strategy, and a breakout of funds necessary to support the acquisition shall be submitted to the Committees not later than 90 days after the date of enactment of this Act.” (I personally don’t think this is a realistic deadline–Chuck)

“The Senate report encouraged the Coast Guard to explore the use of water purification systems free of bromine. Within 90 days of the date of enactment of this Act, the Coast Guard shall brief the Committees on the costs, benefits, and feasibility of adopting this new type of system.”

“The Coast Guard is directed to examine the feasibility, costs, and benefits of conducting intelligence, surveillance, and reconnaissance missions in transit zones using long range/ultralong endurance, land based, unmanned aerial systems. Within the total provided for RDT &E, $18,000,000 is included for the Coast Guard, in collaboration with CBP and S&T to perform an analysts of alternatives (AoA) on available systems and mission equipment packages before conducting a proof of .. ~ concept demonstration of selected systems. The Coast Guard shall brief the Committees on its plans for conducting the AoA and proof of concept within 180 days after the date of enactment of this Act. Further, the Coast Guard, along with CBP and S&T, shall brief the Committees on the results of the demonstration within 90 days following its completion. “