Seventh Webber Class WPC to be Commissioned Saturday, 16 Nov.

Press release announcing the planned commissioning of the seventh Fast Response Cutter, Charles W. David, Jr. (WPC-1107) (The press release says, this is “…the eighth Sentinel Class Fast Response Cutter (FRC) to arrive to Coast Guard Seventh District”  but by my count this is the seventh to be commissioned. Suppose it may be possible both statement are true. Last one commissioned was Paul Clark, on 24 August.) They are coming out at approx. three month intervals.

This will be the first FRC homeported in Key West.

Six more FRCs and Approval of Full Rate Production, Time for a Multi-year Contract

File:USCG Sentinel class cutter poster.pdf

You may have already seen that the Coast Guard exercised a $250.7M option for six more Webber Class WPCs (Fast Response Cutters). I have seen it reported in six to eight different blogs. Here is the Acquisition Directorates (CG-9) news release. These will be units 19 though 24 of the class.

It is certainly welcome news, but I is worth remembering that this was not in the original budget request. A year ago I reported a similar event, the exercise of an option for six FRCs when only two had been requested in the budget. I called for a multi-year contract at that time.

Quoting the CG-9 news release, “This contract action follows the Sentinel-class FRC acquisition project receiving DHS approval to enter full-rate production Sept. 18, 2013.   Also known as the “Produce, Deploy and Support” acquisition phase, approval was granted after the cutter successfully completed Initial Operational Test and Evaluation (IOT&E).  This approval allows the Coast Guard to continue with FRC acquisitions.”

A year ago three vessels had been delivered, now we have seven. FY2014 is the last year of the current contract with Bollinger. In February 2012, the Coast Guard exercised a $27.2M option to purchase the “Procurement and Data License Package” for the Cutters so the Coast Guard now owns the design which would allow other shipyards to bid to build follow-on ships of the same class.

Everything is in place to make this program a multi-year procurement. We have a proven design that we wish to procure in fairly large numbers, 34 more over at least the next six fiscal years, and the Coast Guard owns the design. The Coast Guard can put the contract out to bid, if not FY2014, at least by in FY-2015.

All the most successful Navy ship building contracts (DDGs and SSNs) have been multi-year contracts.  These contracts are a win-win-win. The shipyard gets steady work that they can make a rational plan to fulfill efficiently. The service gets a predictable stream of new ships, and the nation saves from five to 15% on the cost of the assets. Its time the Coast Guard took advantage of this option.

File:The USCGC Margaret Norvell, delivered to the USCG 2013-03-21, but not yet commissioned.jpg

USCGC Margaret Norvell, USCG photo

7th FRC, Charles Davis, Jr., Delivered

gCaptain is reporting the delivery of the seventh Webber Class FRC, Charles Davis, Jr., WPC-1107.

“On the night of February 3, 1943, the U.S. Army transport USS DORCHESTER was torpedoed by a U-Boat off the coast of Greenland in the North Atlantic.    The CGC COMANCHE was on the scene and its crew desperately searched for survivors in the frigid waters.  David fearlessly volunteered to leave the safe haven of the COMANCHE to dive overboard to help rescue the DORCHESTER’s crew.  As other crewmen also volunteered to dive in, 93 survivors were rescued out of the freezing waters.

“After the last of the survivors were safely aboard, David began to climb the cargo net to the ship’s deck.  One of David’s shipmates, Richard Swanson, was having trouble climbing the net due to his freezing limbs.  David descended the net with the help of another crewman and pulled Swanson to the deck out of harm’s way.  Tragically, David died a few days later from pneumonia.”

Coast Guard Capital Investment Plan, 2014-2018

Earlier we discussed the House sub-committee hearings on the Coast Guard’s Capital Investment Plan (CIP). The US Naval Institute has published the plan, you can see it here. It is very short, only six pages, and virtually all the useful information is on the last page.

What I found bewildering is that the Coast Guard does not have any unfunded priorities. The report is supposed to include unfunded priorities, after all the long title is “Capital Investment Plan and Unfunded Priority List.”

“This report responds to the language set forth in
Coast Guard and Maritime Transportation Act of 2012
(Pub. L. 112-213) as per the following:
SEC. 213 CAPITAL INVESTMENT PLAN AND ANNUAL LIST OF PROJECTS……….(b) UNFUNDED PRIORITY DEFINED.—In this section, the term unfunded priority’ means a program or mission requirement that— (1) has not been selected for funding in the applicable proposed budget;(2) is necessary to fulfill a requirement associated with an operational need; and (3) the Commandant would have recommended for inclusion in the applicable proposed budget had additional resources been available or had the requirement emerged before the budget was submitted.”
If you look at the “Fleet Mix Study” it is clear that both the Coast Guard and the DHS agree that in order to accomplish its mandated missions, the Coast Guard has a significant shortfall in assets and would still have a shortfall even if the “Program of Record” (POR) were complete today.
Looking at the table below which was included in the Fleet Mix Study, that concluded the assets under FMA-4 would be required to complete all mandated missions, we can see that the POR is short one NSC, 32 OPCs, 33 OPCs, 22 C-130s, 31 HC-144s, 62 H-60s, 121 H-65s, 22 land based UAS, and 19 Cutter based UAS.
Table ES-8 Alternative Fleet Mix Asset Quantities
—————-–POR       FMA-1       FMA-2        FMA-3        FMA-4
NSC                8             9                 9                 9                  9
OPC              25           32               43                50               57
FRC               58           63               75                80               91
HC-130         22            32               35                44               44
HC-144A       36            37               38                40               65
H-60              42            80               86                99             106
H-65            102          140             159              188             223
UAS-LB          4             19                21                21              22
UAS-CB       42             15                19               19               19
Where are these unfunded priorities? It is one thing to say, “This is what we think we need, but we understand we cannot afford it right now.” It is another thing entirely to preemptively surrender and not even tell Congress what you need when they have asked.
And, at a subcommittee hearing entitled “Examining Cutter, Aircraft, and Communications Needs,” why was there no mention of the Fleet Mix Study except in passing by the Congress’s own researcher?

Subcommittee on Coast Guard and Maritime Transportation: Examining Cutter, Aircraft, and Communications Needs

“The Coast Guard’s FY2014 Five Year (FY2014-FY2018) CIP (Capital Investment Plan–Chuck) includes a total of about $5.1 billion in acquisition funding, which is about $2.5 billion, or about 33%, less than the total of about $7.6 billion that was included in the Coast Guard’s FY2013 Five Year (FY2013-FY2017) CIP. (In the four common years of the two plans—FY2014-FY2017—the reduction in funding from the FY2013 CIP to the FY2014 CIP is about $2.3 billion, or about 37%.) This is one of the largest percentage reductions in funding that I have seen a five-year acquisition account experience from one year to the next in many years.”–Ronald O’Rourke, Specialist in Naval Affairs, Congressional Research Service

The video above is long (one hour and forty two minutes) but I think it is important, and it might even make you mad. This is a hearing before the House Committee on Transportation and Infrastructure’s subcommittee on the Coast Guard and Maritime Transportation. The first hour and ten minutes are fairly routine and I’ll summarize some of it below. It includes the obligatory thank you to the Department Secretary (Secretary Nepolitano has been “particularly supportive”) when in fact the Coast Guard has been cut far more deeply than the rest of DHS. The real meat begins with Ronald O’Rourke’s presentation at 1hr.10min.

(1:10 to 1:15) Mr. O’Rourke’s stance is neutral, as befits a good researcher, preparing a balanced assessment for the law makers, but he succeeds in making some of the best arguments I have heard for increased funding for the Coast. (Unfortunately this seems in marked contrast to the passivity of the Coast Guard leadership. Hopefully this is more apparent than real and there are things going on that we do not see. There is some indication this is true, here and here.) He also takes the Coast Guard to task for not employing multi-year and block buy contracting.

(1:15 to 1:19) Dr. Bucci provides his personnel view, noting that the Coast Guard has not learned to play the Washington bureaucratic game of asking for more than really need. (He also specifically advocates an exemption to the Jones act to allow the Coast Guard to lease foreign built icebreakers.)

(1:19 to 1:24) Dr. Korb advocates a Unified National Security Budget that looks as trade-offs between the Departments of Defense, Homeland Security, and State. He also advocates including the Commandant in the Joint Chiefs of Staff and appointing a Civilian Service Secretary to act as an advocate. Later, when questioned, he points out that the Coast Guard’s unofficial motto is “We can do more with less” and if that is what you ask for “that is what you will get.” Among his telling points was that the Navy budget is 16 times that of the Coast Guard even though they have only eight times the people.

(1:24 to 1:42) Testimony of these three witnesses continued in response to the Representatives’ questions.

You can take a short cut and read the text of the prepared statements, but the Congressmen’s questions and reactions are also instructive, and generally supportive of the Coast Guard.

(0:00 to 1:10) Discussion with Vice Admiral Currier, Vice Commandant

Vice Admiral Currier’s prepared statement was completed at 14 minutes. Questions, answers and committee member statements continued to 1 hour and 10 minutes.

(Note, I am not taking the points in chronological order as discussed)

C-27J: The Coast Guard is apparently counting on getting at least 14 of these aircraft, perhaps as many as 21. Eighteen C-144s have been funded so far of a total of 36 in the “Program of Record.” Substituting C-27Js (which do have a higher operating cost) for the remaining 18 could represent a savings of up to $800M in acquisition costs. Calling it a strategic pause, the Coast Guard has zeroed additional C-144 purchases as it waits to find out if it will get these surplus Air Force assets.

Zeroing future C-144 purchases accounted for about a third of the reduction of the CIP compared to last years. As much as I have supported this course of action, and as confident as the subcommittee sounded, this is really not a done deal because the Air National Guard wants to keep the planes and they are very well connected politically. Additionally there are others who also want these aircraft.

Webber Class WPCs: Another major change was the decision to fund only two Fast Response Cutters annually instead of the four or six funded previously. Simply spreading out the buy is a really bad decision. Building six per year cost less per ship. Buying only two per year will require a renegotiation of contract. In addition, inflation in the ship building industry is not only higher that inflation in general, its rate is higher than the interest rate on government borrowing, so it would cost less in the long run to borrow money and build as rapidly as we can, even including the interest paid on the bonds. This consideration applies to the Offshore Patrol Cutter as well as the FRC. I don’t think this is the last word on construction of the FRCs, and we may see more money added to the budget.

Bertholf Class WMSLs: It now appears all eight National security Cutters will be completed, but we can waste time and money if we do not fund long lead time items and this is currently the plan. This was also discussed and generally deplored.

Multiple Crewing: Questions were raised about when the Coast Guard would demonstrate the “Crew Rotation Concept” which has been touted as being able to provide 225-230 days per year from each of the larger cutters. The Vice Commandant responded that the plan would not be implemented until 2017, but until that time the NSCs are expected to average 210 days AFHP.

Offshore Patrol Cutters:  VAdm Currier said the CG expects to select to three preliminary designs for further development by the end of this FY, and that the final selection will be made a year later, by the end of FY2014.

Unmanned Air Systems: The uncertain future of the Coast Guard’s Unmanned Air Siystem (UAS) programs, and its dependence on the US Navy’s development, was discussed, with Representative Garamendi pointing out this represented a major hole in the Coast Guard’s plan to maintain Maritime Domain Awarenes (MDA).

Response Boat Medium: A Representative questioned why the Coast Guard had stopped the Response Boat, Medium program at 170 RBMs rather than building the 180 approved by Congress, without submitting a justification report for the smaller program as required by Congress.

Port Security: Representative Janice Hahn, California, expressed discomfort with the current container inspection rate of only 2 to 3%. She also suggested the possibility of diverting from some customs money to port security.

The Arctic: A pleasant surprise was that VAdm Currier expressed confident that the Coast Guard can already demonstrate good Maritime Domain Awareness (MDA) in the Arctic. Don Young, Alaska, asked several questions about icebreaker. He opined that the Coast Guard should lease an “American built” icebreaker, never mind the fact that no heavy icebreakers have been built in the US since the Polar Sea. We could of course lease a ship someone would call an icebreaker, but that sort of misses the point. VAdm. Currier did say the Polar Sea could be returned to operation after about three years work at a cost of $100M and have a seven to ten year additional useful life.

Missions: The question, what missions the Coast Guard will not do, given reduced funding. The only answer was that we will have to make some tough choices and the CG and the Department will do a portfolio analysis, date of completion unknown.

Tone: Generally the Committee was supportive. The irony of spending $5B for an East Coast Missile Defense system while shorting the Coast Guard assets that are necessary to prevent a much more probable method of introducing weapons of mass destruction was not lost on the Committee. They also saw the foolishness adding $46B to  beef-up patrols along the Mexican Border and simultaneously undercutting the Coast Guard. They also discussed the double standard by which they could write a $2.6B blank check to purchase unspecified aircraft for Afghanistan, while demanding detailed justification for all Coast Guard purchases. They seemed to recognize that if “National Security” were considered in a holistic fashion, the Coast Guard would do a lot better, but that the committee structure in Congress prevented this kind of evaluation of trade-offs.

Sexual assault: The Vice Commandant addressed this in his prepared remarks and it was also discussed in the subsequent question and answer period.

Things the Coast Guard might do differently:

There was a clear message from the three civilian witnesses that the Coast Guard has not learned to “play the game,” that the Coast Guard has been excessively modest in pointing out its needs, and that because of this reticence important missions are being short changed.

We have repeatedly told our elected representatives about our successes, but that leaves the impression everything is alright. Everything is not alright. We need to keep reminding them what is not getting done and the possible consequences of inaction. Every time a Congressionally mandated task is not done to the fullest extent, it should be reported, and they should be made to understand that the reason it was not done is lack of resources. We need to put the onus on Congress and the Executive.

When asked what mission the CG will not do, Adm Currier “we can adjust.” Given an opportunity to address why the aging fleet’s patrol hours now down 8-12%, Admiral Currier said, Currier, “We are OK for OPC/MEC” (Frankly I don’t think that is true. The Coast Guard’s own studies point out a need not only for newer replacements but also more ships) and “The gap is in the Offshore and the NSC is key.” The construction of the eight NSCs seems assured, it was time to point out how the fleet will continue to age and deteriorate. We can expect even more breakdowns and higher maintenance costs for the legacy fleet. In the nine years 1964 to 1972, 28 new ships entered service with the Coast Guard (3.11 ships per year). Only three have been replaced and we are building at a rate of less than one a year, and we don’t expect to deliver more than one replacement per year until at least 2023 and then never more than two a year. Things are going to get much worse before they get better.

We have done an absolutely terrible job of conveying an sense of urgency in replacing our over-aged patrol ships. I have on my desk the August issues of the Navy League’s magazine “SeaPower” and the US Naval Institute’s Magazine “Proceedings.” Both magazines carry happy glowing reports of the Coast Guard’s successes. There is hardly a word about the growing problems with our major cutters. There is hardly a mention of the OPC and certainly no article designed to explain the urgency of its funding and why the naval and maritime community should be excited about it.

The Coast Guard needs to publish a 30 year ship building plan. When I first saw that the Navy was doing this, I thought it was ridiculous, but think about what it does for you. It lays out intentions far into the future and prepares the decision makers to deal with uneven funding requirements. It also highlights the bow wave effect of deferring acquisitions.

If the Coast Guard can get seven to ten years out of the Polar Sea for $100M then compared to 30 years from a new $800M to $1B icebreaker then the costs are not out of line. Perhaps we should not reject the idea. By the time the new icebreaker is ready, the remaining life in Polar Star will be used up (if it actually lasts that long) and we will still have only one heavy icebreaker. Putting an second heavy icebreaker into the fleet, as soon as possible, is the best way to create a presumption that there will be a second new icebreaker to follow the one currently planned. These ships break, we really need more than one.

Perhaps it is also time to make another examination of the legacy of Deepwater that is still with the Coast Guard. Are there alternatives to the long range aircraft/UAVs and the ship types that have been perpetuated long after the program failed?

The Coast Guard has belittled its role in national defense and in doing so has also minimized the future utility of its assets in this role. Fear is a stronger motivator than altruism. We need to recognize that the nation is motivated more by fear than by the desire to do good or maintain its infrastructure. This is the reason the Defense Department is well funded.  The national defense role of the Coast Guard, both against terrorism in peacetime and as a naval auxiliary that can bring needed additional numbers to the fight in wartime needs much more emphasis. It is obvious, listening to the subcommittee, that the counter-terrorism role was what they had in the forefront of their minds.

The Sub-Committee:

—Republicans

Duncan Hunter, California, Chairman
Don Young, Alaska
Howard Coble, North Carolina
Frank A. LoBiondo, New Jersey
Patrick Meehan, Pennsylvania
Steve Southerland, II, Florida, Vice Chair
Tom Rice, South Carolina
Trey Radel, Florida
Mark Sanford, South Carolina
Bill Shuster, Pennsylvania, (ex officio)

—Democrats

John Garamendi, California, Ranking Member
Elijah E. Cummings, Maryland
Corrine Brown, Florida
Rick Larsen, Washington
Timothy H. Bishop, New York
Janice Hahn, California
Lois Frankel, Florida
Nick J. Rahall, II, West Virginia, (ex officio)

Brits Test UAVs from 89 foot Vessel

Think Defense is reporting Britain’s DSTL (Defense Science and Technology Laboratory) is contucting trials of UAVs from the Naval Surface Warfare Center, Combatant Craft Division’s experimental craft Stiletto.

Three different UAVs were picked for the demonstration and launched from Stiletto’s flight deck, including DRS’ Neptune. DSTL personnel were on board, and observed launch, payload operation, and recovery evolutions near Naval Air Station Patuxent River in Patuxent River

I hope the Coast Guard will look at the results. It appears there is a good possibility of operating UAVs from the Webber Class Fast Response Cutters.

Robert Yered Commmissioned

The forth Webber Class Fast Response Cutter Robert Yered (WPC-1104) has been commissioned. This Miami Herald report includes some good video, including structural test firing of the ships weapons, mooring using a wired remote controller they call a pendant, and interior shots from the ship.

The bridge is certainly large; so large it was apparently used for the pre-fire brief. The watch will need to be careful not to be distracted, if meetings on the bridge becomes common.

This report mentions that the cutter is capable of 32 knots, which is substantially more than the usually reported 28 knots.

This report from NavalToday, includes a video with a more personal look at the heritage the ship represents.

The DHS Cutter Study, Trade-offs, and the Case for “Cutter X”

I have had an opportunity to look a bit more closely at the Department of Homeland Security Cutter Fleet Study, “Options for the Future USCG Cutter Fleet Performance Trade-Offs with Fixed Acquisition Cost,” by Alarik Fritz • Raymond Gelhaus • Kent Nordstromr (.pdf).

The Study

I highly recommend at least the synopsis, which is the first thirteen pages. I think the study is an honest attempt to determine the best mix for the Coast Guard fleet; it is quite well done. Basically it holds cost constant and looks at possible alternatives to build the most effective fleet possible. It builds on work done for the earlier Coast Guard Fleet mix studies, but unlike the CG studies, it looks at alternatives to the program of record. It looks at where the missions are being performed and considers the effects of weather on mission performance in four regions, the Northeast, Southeast, West, and Alaska.

The study considers:

  • trading National Security Cutters (NSC) for more Offshore Patrol Cutters (OPC) (Approx. two OPCs per NSC)
  • trading OPC as currently described for OPCs that have reduced capabilities but retain the seakeeping and endurance of the OPCs (This was postulated but not explored in depth. It did not appear to make much difference.)
  • trading OPCs for a modernized version of the 270 (approx. four mod-270s for three OPCs)
  • trading OPCs for an equal number of LCS (This was seen as a non viable choice because of the higher cost and lower seakeeping and endurance of the LCS)

The problems (and these were recognized by the study) are:

  • Further delays in beginning building ships severely impacts near term capability
  • A major Cutter fleet of only NSCs and mod-270s does not meet the needs for heavy weather capability where it does exist.
  • Because the Mod-270s have as large a crew as the OPCs, a larger number of ships would add to the operating cost of the fleet.

What comes through loud and clear, from this study is that

  • We need ships with the capability to do boat and helicopter ops in State Five Seas particularly in the Northeast and Alaska.
  • In the Southeast and West, where the primary missions are Drug Enforcement and Migrant Interdiction, we are a long way from a point of diminishing returns, that is, mission performance is most directly linked to the number of cutters, increasing in in almost direct proportion to the number available.
  • The cutters ability to launch boats and helicopters in State Five conditions are much less important in the West and Southeast where most of the cutters are normally deployed.

An Alternative

In simplistic terms, while we need some highly capable hulls, we also need even more hulls on patrol, but the additional hulls don’t need to be particularly sophisticated. This leads me to the conclusion to the we really need another option, another class of ship, I’ll call it “Cutter X.” Think of this new class as taking the crew and equipment of a Webber class Fast Response Cutter (FRC) and putting them in a larger hull with more endurance and seakeeping, while accepting lower top speed than the FRC. We can take advantage of the training and corporate experience with the FRCs, if we add similarly equipped larger cutters.

I am going to talk about one possible fleet mix including this additional class. It is not necessarily the optimum mix, I’ll leave that for further analysis, but I think it may illustrate the advantage of including this additional class. For this proposed new mix I believe we can hold acquisition and operating costs constant, ie the same as the program of record. The proposal would trade 24 units in the program of record (2 NSCs, 4 OPCs, and 18 FRCs) for 22 units of this additional class (depending on cost we might get more) and could allow us to:

I’ll compare this possible fleet mix to the Coast Guard Fleet as it existed in 2000/2001 and the fleet in the Program of Record (POR). on the basis of cutter days available and crewing requirements using both conventional and augmented crewing.

Before we do that, what would “Cutter X” look like? The design that I think comes closest to what I have in mind is the French built L’Adroit (also here and here). It is four times as large as the FRC at 1,450 tons but even with far less horsepower than the FRC (7,500 vs 11,600) it still does 21 knots. With the FRCs engines it would likely do about 24. It might be thought of as a modernized 210, in that unlike the 270 it has no medium caliber gun, fire control system, or ESM.

(There are other similar ships that could be used as examples, see the addendum at the end of the post.)

As we have noted earlier, increased size doesn’t necessarily add much to the cost of a ships. Adding only volume, storage, and larger fuel and ballast tanks, I think these ships can be produced for no more than three times the price of the FRCs, perhaps less than twice as much. I don’t have prices for other examples, but for one, BAEs “Port of Spain” class, the original price for  was only $80M each, less than twice the cost of a FRC and that figure included continued maintenance and training for the crew.

Basically my assumption is that the tradeoffs would work something like this:

1 NSC = 2 OPCs = 4 Cutter Xs = 12 FRCs

This equates to approx. prices of: $700M/NSC, $350/OPC, $175M/Cutter X, and $60M/FRC.

Lets compare the Fleets

As a baseline, take a look at the CG fleet as reported in the 2000/2001 Combat Fleets of the World (I happen to have a copy). It included:

  • 12 Hamilton class 378s
  • 13 Bear class 270s
  • 16 Reliance class 210s
  • Alex Haley
  • Acushnet
  • Storis
  • 49 Island class 110s

or 93 vessels including 44 “cruising cutters” to use the old generic term.

The Program of Record if completed will include:

  • 8 NSC
  • 25 OPC
  • 58 FRC

or 91 vessels including 33 cruising cutters.

The proposed alternative mix would include:

  • 6 NSC
  • 21 OPC
  • 22 Cutter X
  • 40 FRC

or 89 vessels including 49 cruising cutters.

Cutter Days AFHP and Crew Requirements:

For the analysis below I have used the following as the personnel allowances for the new classes:

  • NSC 113
  • OPC   90 (still to be firmed up)
  • FRC    24 (includes two extra junior officers assigned to gain experience)

The personnel allowance for new class could be as little as 30 but is likely going to be more, if only as an opportunity to provide more at sea experience. Using the assumed personnel allowances and the trade-off identified earlier, the proposed mix would require no more personnel than the program of record unless the personnel allowance for “Cutter X”  is more than 46. At most the personnel allowance should not be more than that of the 210s. My figures may be out of date, but at least at one point that was a crew of 62. I’ll use this as the upper limit.

The 2000/2001 fleet theoretically could have provided 8,140 cruising cutter days away from homeport (AFHP) (44 cruising cutters x 185 days) and would have required a total personnel allowance of 5,509.

Without augmentation, the program of record would theoretically provide 6,105 cruising cutter days AFHP (33 cruising cutters x 185 days) and require a total personnel allowance of 4,526.

With Augmentation (increasing their personnel allowance by a third and running the cruising cutters 230 days/year) the program of record would theoretically provide 7,590 cruising cutter days and require a total personnel allowance of 5259.

Without augmentation, the proposed mix would theoretically provide 9,065 cruising cutter days AFHP (49 cruising cutters x 185 days) and require a total personnel allowance of between 4,188 (assuming a crew of only 30 for Cutter X) and 4,892 (assuming a crew of 62 for Cutter X).

With Augmentation (increasing their personnel allowance by a third and running the cruising cutters 230 days/year) the proposed mix would theoretically provide 11270  cruising cutter days AFHP (49 cruising cutters x 230 days) and require a total personnel allowance of between 5264 (assuming a crew of only 30 for Cutter X) and 6203 (assuming a crew of 62 for Cutter X).

What about the loss of FRCs? The proposal would trim 18 FRC from the POR. They are projected to operate up to 2500 hours per day. If we assumed that all 2500 hours were devoted to offshore cruising for the 18 additional units, that would add 1875 days AFHP to the POR for a total of 7,980 days AFHP for the un-augmented fleet and 9,465 days AFHP for the augmented POR. (disregarding the 40 additional FRC that are included in both proposals).

In summary Cutter Days Available:

  • ————————————————–Un-Augmented———Augmented by 1/3
  • 2000/20001 (cruising cutters only)                     8,140                            N/A
  • POR (cruising cutters only)                                 6,105                          7,590
  • POR (w/1,875 additional FRC day AFHP)           7,980                          9,465
  • Proposed Mix w/Cutter X (cruising cutters only) 9,065                        11,270

It looks like this alternative provides an improvement of at least 13% over the program of record, possibly as much as 48.5% depending on how you view the FRCs as a patrol asset. It appears that the un-augmented version may be superior to the augmented version of the program of record while using far fewer people.

Is it doable? What is the timing? How would it mess with other programs?

Cutter X production could ramp up as FRC construction trails off. If we are unable to increase the FY2013 from the current two units, that will put the program at 20 units funded. With no NSCs planned for FY 2014 and 2015, hopefully there will be funding for six in FY2014. Out-years, beginning in FY2015 will require a new contract to complete the additional 14 units proposed. Assuming six units a year, in FY 2015 and 2016, the last two would be funded in FY2017.

If the CG starts soon they could fund the prototype unit of Cutter X in FY2017. L’ Adroit was completed in approximately 13 months, so it is at least theoretically possible the first unit could be delivered well before the first OPC (expected FY2020). Replacing the FRC in the budget, two units a year could be funded in parallel with OPC construction.

Addendum: Other Patrol Vessels similar in concept:

File:HMS-Clyde Fox-Bay.jpg

HMS Clyde, 267x45x12, 8,250 HP 21 knots, crew 42 + accommodations for 20 more, endurance 7,800 nmi @ 12 knots, 1x30mm, Flight deck for up to Merlin (16 ton helicopter)

HMS Tyne (P281) Offshore Patrol Vessel at sea

British River class OPV (UK) (and here), 261x45x12, 1,677 fl, 5,532 HP 20 knots, crew 30 + accommodations for 20 more, 1x20mm, no flight deck or hangar

File:T&T Port of Spain-1-tonal.jpg

BAE’s Port of Spain class  (Brazil and Thailand) (more here), 264x44x12, 1700 tons,  9,700 HP 25 knots, crew 34+5 trainees, endurance , 1x30mm, 2x25mm, Helo deck, but no hangar (Thai version HTMS Krabi has a 76mm Oto Melara and 2x30mm)

File:Vega P404.jpg

Italian Ship Vega, Cassiopia Class, Nov. 2001, by Antoio Munoz Criado

Cassiopea class (Italy), 262x39x12, 1,475 tons fl, 8,800 HP 21 knots, crew 60,  endurance 35 days, 3300 nmi @ 17 knots (probably 5,000 at 12 or 13 knots) 76mm gun and FCS helo deck and hangar.

Program Updates from a GAO Report

September 26, Fiercehomelandsecurity posted a story (“GAO: Not eliminating two National Security Cutters will cause ‘difficult choices'”) on a recent GAO report, “COAST GUARD, Portfolio Management Approach Needed to Improve Major Acquisition Outcomes” (download the report, GAO-12-918 (.pdf)).

I’m going to look at other aspects of the report later, but there were a number of items addressed in the report that readers may not be aware of. This is not an exhaustive list, the report contains even more, but I thought these most interesting. We may have touched on some of  these changes already, but here goes.

General:

“DHS stated that future breaches in Coast Guard programs would almost be inevitable as funding resources diminish.” (p.17)

Maritime Domain Awareness/C4ISR:

Nationwide Automatic Identification System–Indefinitely deferring plan for continuous nationwide coverage. (p14)

Common Operating picture:

“The Coast Guard planned to buy an integrated C4ISR system for each asset to enable greater awareness. As we reported in July 2011, the Coast Guard has spent over $600 million purchasing a C4ISR system that is difficult to maintain and does not yet achieve the system-of systems capability and the Coast Guard’s helicopters are no longer going to be a part of this system” (p.26)

–Neither the OPC or the FRC are expected to be able to exchange near real time “battle data” (tactical data link?) with DOD assets. (p.25)

–Why don’t we use LINK 16 Multifunctional Information Distribution System-Low Volume Terminals on all these platforms?

Fast Response Cutter:

“…the Coast Guard has attributed the more than $1 billion rise in the Fast Response Cutter’s cost to a reflection of actual contract cost from the September 2008 contract award and costs for shore facilities and initial spare parts not included in the original baseline.”

Aviation:

Coast Guard’s Aviation Logistics Center told us they recently identified that the end of service life for the HH-60s and HH-65s could be reached as early as the 2022 time frame—not the 2027 time frame as originally planned. Officials added that this will require the Coast Guard to either buy new HH-60s and HH-65s or conduct a service life extension—previous service life extensions have been funded with acquisition dollars.(p16)

H-65 program: dropping both a helicopter handling, traversing, and securing system and a surface search radar. (p.13)

H-60 Program: deferring indefinitely upgrades to include a surface search radar and C4ISR due to budget constraints. (p.13)

A revise baseline program for C-130s has been forwarded DHS that recommends 11 H models and 11 J models (p.40) (I think this is an increase in the expected number of “J” models.)

Sanity Prevails:

The Coast Guard has dropped its plans to deliver boarding parties on potentially hostile ships by helicopter (p.27)

A Small Bit of Surprisingly Good News:

The National Security Cutter can do 32 knots (“speed is based on the results of an operational assessment” p. 32), making it almost certainly the fastest major cutter ever.

Webber Class FRCs, Multiyear Procurement in the Future?

File:Proposed modification to the Damen Stan patrol vessel for the USCG.jpg

MarineLog and gCaptain have both recently reported that the Coast Guard has exercised an option for six more Webber class Fast Response Cutters. These will be units 13 through 18 of the class. These are, I believe, all from FY2012 money. The Coast Guard had intended to defer ordering two of these to combine them with two being requested in FY2013 to keep the shipyard working at a consistent minimally sustainable rate of four units per year. That may be what they end up doing anyway, delivering one boat every three months.

I thought it was about time to review the status of the Fast Response Cutter project and look at the future. Where are we and where are we going with this project?

Phase One:

The third vessel of the class, William Flores (WPC-1103), was delivered to the Coast Guard August 17th, and is expected to be commissioned in November. If boats are delivered at three month intervals, the last of the FY2012 boats will be delivered May of 2016. If instead, the shipyard immediately begins to deliver boats at the two month interval they should be capable of, the 18th boat will deliver in February 2015.

The existing contract included options for up to 34 vessels, but because all options were not exercised, the maximum number that can be built under the existing contract would be 30. Two option years remain, FY 2013 and 2014, but because of funding difficulties, it appears unlikely that options will be exercised for all twelve units remaining in the existing contract. The FY2013 budget request included only two vessels, rather than the six that would be provided under full rate production.

So, there will be a second phase procurement aimed at building at least 28 vessels and probably more, perhaps as many as 36, if only two are funded in FY 2013 and two in 2014.

The DHS Inspector General has raised some questions about the progress of the Fast Response Cutter Program. The report faults the Coast guard for accelerating production before the completion of operational test and evaluation, which is not expected to be completed until March 2013. Considering that the program was well behind schedule in terms of replacing 110s, some urgency appears justified. Risk areas the DHS IG pointed out were the stern launching system for the ship’s boat, and that “the service has not verified that the FRC is capable of stowing all its gear.” Since the boat launch arrangement follows that used successfully on the last of the Navy’s Cyclone class PCs, and the vessels have much more volume than the 110s they replaced, it seems unlikely either of these is going to be a real problem.

Phase Two:

In October 2011 the Acquisition Directorate, CG-9, had already begun market research (pdf) for the second phase procurement of Fast Response Cutters that is expected to be awarded in FY2015. I am hoping the Coast Guard will seek Congressional approval to make this a “Multiyear Procurement” as defined here:

“Multiyear Procurement (MYP) and Block Buy Contracting in Defense Acquisition: Background and Issues for Congress” (pdf), Congressional Research Service (CRS), Ronald O’Rourke and Moshe Swartz, June 27, 2012 (Sorry you will need to copy and paste: http://www.fas.org/sgp/crs/natsec/R41909.pdf)

These types of contracts originated in the DOD, but have now been extended to other branches as well. The FRC project seems to meet all the requirements for this type of procurement. This is different from what was done in phase one, which was an annual contract with options for future years. A multiyear procurement offers the Coast Guard at least three possible advantages.

  • Savings as a result of the longer term of the contract,
  • Savings as a result of increased competitiveness in the contract award, and
  • Long term commitment by the Congress and Administration.

The longer term of these contracts, which can commit the government for up to five years, frequently means increased efficiency which can be passed along to the government. The CRS report identifies two primary reasons for the increased efficiency:

  • Contractor can optimize their workforce and production facilities.
  • Long-leadtime components can be procured in Economic order quantity (EOQ)

While it is difficult to know the true savings these advantages offer, they are estimated to be several percentage points.

“Compared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting.”

In February 2012, the Coast Guard exercised a $27.2M option to purchase the “Procurement and Data License Package” for the Webber class Fast Response Cutters, so when it is time to award phase two, the Coast Guard can allow other shipyards to bid to build follow-on ships of the same class.

If we don’t go to a multiyear procurement, the current contractor, Bollinger, will certainly have a massive advantage in an annual award process. Awarding a multiyear contract could go a long way toward leveling the playing field, in that other shipyards would see the benefit  in optimizing their facilities for the larger contract.

And last, but by no means least, this strategy would commit the Congress and the Administration to a constant, long term support of the program that is mature and obviously needed.