The following is the Jan. 6, 2021 Congressional Research Service report, Coast Guard Polar Security Cutter (Polar Icebreaker) Program: Background and Issues for Congress.
From the report
The Coast Guard Polar Security Cutter (PSC) program is a program to acquire three new PSCs (i.e., heavy polar icebreakers), to be followed years from now by the acquisition of up to three new Arctic Security Cutters (ASCs) (i.e., medium polar icebreakers). The PSC program has received a total of $1,754.6 million (i.e., about $1.8 billion) in procurement funding through FY2021, including $300 million that was provided through the Navy’s shipbuilding account in FY2017 and FY2018. With the funding the program has received through FY2021, the first two PSCs are now fully funded.
The Coast Guard’s proposed FY2022 budget requests $170.0 million in procurement funding for the PSC program, which would be used for, among other things, procuring long leadtime materials (LLTM) for the third PSC.
The Navy and Coast Guard in 2020 estimated the total procurement costs of the PSCs in then-year dollars as $1,038 million (i.e., about $1.0 billion) for the first ship, $794 million for the second ship, and $841 million for the third ship, for a combined estimated cost of $2,673 million (i.e., about $2.7 billion). Within those figures, the shipbuilder’s portion of the total procurement cost is $746 million for the first ship, $544 million for the second ship, and $535 million for the third ship, for a combined estimated shipbuilder’s cost of $1,825 million (i.e., about $1.8 billion).
On April 23, 2019, the Coast Guard-Navy Integrated Program Office for the PSC program awarded a $745.9 million fixed-price, incentive-firm contract for the detail design and construction (DD&C) of the first PSC to Halter Marine Inc. (formerly VT Halter Marine) of Pascagoula, MS, a shipyard owned by Singapore Technologies (ST) Engineering. Halter Marine was the leader of one of three industry teams that competed for the DD&C contract. On December 29, 2021, the Coast Guard exercised a $552.7 million fixed price incentive option to its contract with Halter Marine Inc. for the second PSC.
The DD&C contract includes options for building the second and third PSCs. If these options are exercised, the total value of the contract would increase to $1,942.8 million (i.e., about $1.9 billion). The figures of $745.9 million and $1,942.8 million cover only the shipbuilder’s costs; they do not include the cost of government-furnished equipment (GFE), which is equipment for the ships that the government purchases and then provides to the shipbuilder for incorporation into the ship, post-delivery costs, costs for Navy-specific equipment, or government program-management costs.
The operational U.S. polar icebreaking fleet currently consists of one heavy polar icebreaker, Polar Star, and one medium polar icebreaker, Healy. In addition to Polar Star, the Coast Guard has a second heavy polar icebreaker, Polar Sea. Polar Sea, however, suffered an engine casualty in June 2010 and has been nonoperational since then. Polar Star and Polar Sea entered service in 1976 and 1978, respectively, and are now well beyond their originally intended 30-year service lives. The Coast Guard plans to extend the service life of Polar Star until the delivery of at least the second PSC. The Coast Guard is using Polar Sea as a source of spare parts for keeping Polar Star operational.
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