The following is the March 18, 2023, Congressional Research Service report, Coast Guard Cutter Procurement: Background and Issues for Congress.
From the report
The Coast Guard’s program of record (POR), which dates to 2004, calls for procuring 8 National Security Cutters (NSCs), 25 Offshore Patrol Cutters (OPCs), and up to 71 Fast Response Cutters (FRCs) as replacements for 90 aging Coast Guard high-endurance cutters, medium-endurance cutters, and patrol craft.
National Security Cutters are the Coast Guard’s largest and most capable general-purpose cutters; they are replacing the Coast Guard’s 12 Hamilton-class high-endurance cutters. NSCs have an estimated average procurement cost of about $670 million per ship. Congress has fully funded the procurement of 11 NSCs—three more than the 8 in the Coast Guard’s POR. The Coast Guard’s proposed FY2024 budget requested $17.1 million in procurement funding for the NSC program. The Coast Guard’s proposed FY2025 budget requests $7.0 in procurement funding for the NSC program, and the Coast Guard’s FY2025 Unfunded Priorities List (UPL) includes an item for an additional $50.0 million in procurement funding for activities relating to the 11th NSC. Nine NSCs have entered service; the Coast Guard accepted delivery of the 10th on October 13, 2023, and plans to commission it into service in 2024. The 11th is under construction.
Offshore Patrol Cutters are intended to replace the Coast Guard’s 29 aged medium-endurance cutters. Coast Guard officials describe the OPC program and the Polar Security Cutter (PSC) program (which is covered in another CRS report) as the service’s highest acquisition priorities. The first four OPCs are being built by Eastern Shipbuilding Group (ESG) of Panama City, FL. The Coast Guard held a full and open competition for a new contract to build the next 11 OPCs (numbers 5 through 15). On June 30, 2022, the Coast Guard announced that it had awarded a fixed-price incentive (firm target) contract to Austal USA of Mobile, AL, to produce up to 11 offshore patrol cutters (OPCs). The Coast Guard’s proposed FY2024 budget requested $579.0 million in procurement funding for the construction of the sixth OPC and other OPC program costs. The Coast Guard’s proposed FY2025 budget requests $530.0 million in procurement funding for the construction of (once again) the sixth OPC and other OPC program costs, and states that the requested FY2024 procurement funding would now be for the construction of the fifth OPC rather than the sixth.
A June 2023 Government Accountability Office (GAO) report on the OPC program states “The OPC’s total acquisition cost estimate increased from $12.5 billion to $17.6 billion between 2012 and 2022…. In addition, the program incurred a 1.5-year delay in the delivery of the first four OPCs…. GAO also found indicators that the shipbuilder’s significant level of complex, uncompleted work may lead to further delays.”
Fast Response Cutters are considerably smaller and less expensive than OPCs; they are replacing the Coast Guard’s 49 aging Island-class patrol boats. The Coast Guard’s FY2020 budget submission estimated the total acquisition cost of the 58 cutters intended for domestic use at $3.748 billion, or an average of about $65 million each. A total of 65 FRCs have been procured through FY2023. As of March 18, 2024, 54 FRCs have been commissioned into service. The Coast Guard’s proposed FY2024 budget requested $20.0 million in procurement funding for the FRC program, and the Coast Guard’s FY2024 UPL included an item for $400.0 million in procurement funding for procuring four more FRCs at an average cost of $100 million each, to provide increased Coast Guard presence and engagement with allied and partner countries in the Indo-Pacific region. The Coast Guard’s proposed FY2025 budget requests $216.0 million in procurement funding for the FRC program for the procurement of two more FRCs for operations in the Indo-Pacific region, plus additional FRC program costs.
Download the document here.
