The U.S. Coast Guard’s upcoming acquisition of the Offshore Patrol Cutter (OPC) offers many opportunities to leverage recent procurement lessons to achieve the program’s affordability requirement of $310 million per hull. The second risk is that even if the cutter design provided by Eastern Shipbuilding Group can be built for about $421 million, that the design emerges as a compromised and unworkable vessel. With some luck and savvy leadership, it can only get better from here. The Coast Guard has picked the homeport for the service’s first pair of Offshore Patrol Cutters on the East Coast, the service announced on Wednesday. With a total value of $10.5 billion, the Offshore Patrol Cutter (formally known as the Heritage (WMSM 915) class cutter) is a top Coast Guard procurement priority. What Can The Beleaguered Airline Business Expect From 2021? Adding to the difficulties, the area’s relative isolation and the Trump Administration’s half-hearted reconstruction effort only exacerbated staff recruitment and retention challenges. capsized off the shattered Eastern Shipbuilding Group shipyard in aftermath of Hurricane Michael in Panama City, Florida. As these rumors swirled in 2018, Hurricane Michael hit, leveling the Eastern Shipbuilding Group’s shipyard in Panama City. Opinions expressed by Forbes Contributors are their own. The Coast Guard’s dramatic move has saved the Offshore Patrol Cutter Program. The text below has been changed to reflect the correction. Plans to include a stern launching ramp, as on the National Security Cutters and the Fast Response Cutters, had been eliminated on budgetary grounds. On the other hand, the U.S. Coast Guard now gets an opportunity to rebid the program, letting major shipyards with excess production capacity engage in a vicious price shoot-out. Questions still lingered. Back when the Offshore Patrol Cutter contract was inked in 2016, Eastern Shipbuilding Group had something of a swashbuckling reputation. The Heritage-class cutters weapon and defense systems provide anti-surface capability, limited air-defense capability, and the capability to provide naval gunfire support. The primary risk for the Department of Homeland Security is that the industry rumors are true, and the Coast Guard discovers that Eastern Shipbuilding Group dramatically underbid. The Coast Guard selected Eastern Shipbuilding Group Inc. (ESG) to build the ship, by choosing them to continue into phase 2 of the OPC development, which includes detail design and construction. Founder and CEO of the Themistocles Advisory Group, I focus on communications and government relations as well as maritime, homeland defense and chemical, executive for naval shipbuilder Austal USA, helping deliver Littoral In February 2014, the USCG announced that Bollinger Shipyards, Eastern Shipbuilding, and General Dynamics Bath Iron Works had been awarded design contracts for the OPC. [6] The cutters will have the ability to install additional equipment (armament) and systems to augment their capabilities if required to conduct operations in higher threat environments in support of national security objectives or other missions. Other wild-card yards that were cut out of both the Frigate and the Offshore Patrol Cutter at an early stage will also get a second bite at the apple, potentially driving down the per-hull price. The first Offshore Patrol Cutter is expected to be delivered in Fiscal Year 2021. Artist’s rendition of the Offshore Patrol Cutter, images courtesy of Eastern Shipbuilding Group. The service needs the 25 new cutters soon to replace others that are more than 50 years old, but the hurricane added delays and cost.The Coast Guard accepted significant risk with the design, schedule, and cost—both before and after the hurricane—to … All Rights Reserved, This is a BETA experience. Several of the Service’s 29 existing mid-sized cutters are over fifty years old, unreliable and obsolete. As Eastern Shipyard recovers, two builders may even offer the Coast Guard opportunities to surge production beyond the original twenty-five “Program of Record” ships. Rolls-Royce will provide an extensive range of equipment, including MTU marine generator sets, to a new fleet of U.S. Coast Guard Offshore Patrol Cutters (USCG OPC). The US Coast Guard has awarded eight contracts to eight shipbuilders for Offshore Patrol Cutter (OPC) industry studies, in a bid to return the program back on track. The OPC is designed to have a … [10] The cutters are also equipped with the AN/SLQ-32C(V)6 electronic warfare system, which is a scaled down and lower cost version of the AN/SLQ-32(V)6 SEWIP Block 2 system. The challenge for the Coast Guard is that there is little time to spare. The almost completed Eastern Shipbuilding-built North Star, an Alaskan factory trawler, lies ... [+] capsized off the shattered Eastern Shipbuilding Group shipyard in aftermath of Hurricane Michael in Panama City, Florida. [25] In total, the 25-ship deal could be worth up to $10.5 billion. Eastern Shipbuilding to build second offshore patrol cutter for USCG April 13, 2020, by navaltoday The US Coast Guard (USCG) has modified its contract with Eastern Shipbuilding Group (ESG) to begin construction of the second offshore patrol cutter (OPC) and acquire long lead-time material (LLTM) for the third OPC. An artist's rendering of a future Heritage Class Offshore Patrol Cutter. By 2010 and 2011 some commentators speculated that the entire program was vulnerable to cancellation on budgetary grounds, because of the long delay in finalizing a preliminary design. In 2018, Hurricane Michael devastated the shipyard where construction of the Coast Guard's Offshore Patrol Cutters was about to begin. The yard exploded on the scene during the Gulf offshore oil boom, emerging out of nowhere to become an amazingly successful commercial yard, building tugs and oilfield support craft at a blistering pace. [21], In September 2016, Eastern Shipbuilding of Panama City, Florida, was awarded a $110.3 million contract to build the first Offshore Patrol Cutter with an option to purchase eight additional cutters. The contract to build these mid-sized 3,500- to 3,700-ton cutters was awarded in 2016 to a scrappy underdog, Florida-based Eastern Shipbuilding Group. The Rolls-Royce equipment was selected by Eastern Shipbuilding Group (ESG) Inc. for the USCG OPC fleet’s first nine vessels, with an option to add two more. The ship, to be named Chase (WMSM-916), is scheduled for delivery in 2023. The construction of the first cutter, USCGC Argus (WMSM-915), was planned to begin in the late summer of 2018, with delivery in August 2021. This leads to the Final Critical Design Review for the Offshore Patrol Cutter. The contract originally included options for the production of up to nine vessels with a … The nightmare scenario is that, even when re-competed in a tough price shoot-out, other industry players decide that the Offshore Patrol Cutter is unable to be built for the $421 million the U.S. Coast Guard and Congress originally expected. The cutting of steel started the fabrication and assembly of the cutter’s hull, and ESG is to complete keel laying of Chase […] I offer blunt, uncompromising guidance on national security solutions, bringing complex security issues and oft-neglected defense topics to the attention of interested. The Offshore Patrol Cutter – the Coast Guard’s highest investment priority – will provide the Coast Guard with a renewed level of presence and effectiveness in the offshore environment. The Offshore Patrol Cutter (OPC) program will replace the legacy medium endurance cutter fleet. [29], On September 28, 2018, the USCG exercised the contract option to begin construction of the lead Offshore Patrol Cutter, along with long-lead materials for OPC #2. Offshore Patrol Cutter port quarter Note: I have had to revise some of my conclusions about when benchmarks would be achieved. The Heritage-class cutter, also known as the Offshore Patrol Cutter and the Maritime Security Cutter, Medium, is The Heritage-class OPCs are named after cutters that played a significant role in the Coast Guard's history. Joe Biden Could Rescue The Last Nuclear Treaty—But Don’t Expect Him To Negotiate A New One, Clarified ‘Unfair And Deceptive’ Language Improves Airline Pricing Transparency, Russia Is Building Four Special Submarines To Haul Its Weird Doomsday Drone. After restructuring, the Coast Guard will now only offer Eastern Shipbuilding options to build four of these $421 million vessels, and the rest– 21 ships–will likely be put out to bid. a cutter class of the United States Coast Guard (USCG), developed as part of the Integrated Deepwater System Program and built by Eastern Shipbuilding. This leads to the Final Critical Design Review for the Offshore Patrol Cutter. That’s A Tough Sell. On September 15, 2016, the U.S. Coast Guard exercised the Detail Design contract option, worth $110.3 million, to Eastern Shipbuilding Group (ESG) in Panama City, Florida. Shipyards cannot compete. Naval Institute Proceedings and beyond. Industry rumors suggested that the family-owned shipyard was looking for the exits and seeking a buyer, and others wondered if Eastern might use a strategic bankruptcy to stave off the daunting contractual demands posed by the enormous Offshore Patrol Cutter contract. The 360'x54' cutter will be powered by two FM|MAN 16V 28/33D STC diesel engines, each rated at 7,280 kW (9,760 hp at 1,000 rpm) propulsion power. [8] These cutters have space and weight reserved for additional weapons systems which would allow them to carry out wartime missions. The Coast Guard announced the award of eight Offshore Patrol Cutter (OPC) industry studies contracts March 20, 2020. The Heritage-class cutters are the newest class of cutter in the USCG, bridging the capabilities of the Legend-class cutters and the Sentinel-class cutters. [28] This also includes meeting Coast Guard requirements, and meeting all American Bureau of Shipping Naval Vessel Rules and is the first US Coast Guard cutter ever constructed to meet these very specific requirements. On July 21, 2017, Eastern Shipbuilding completed its Initial Critical Design Review for the Offshore Patrol Cutter. To them, the Offshore Patrol Cutter would be a lifeline. And while a quick rescrub of the existing Offshore Patrol Cutter design and the requirements that back it are worthwhile, a potentially imperfect design may be better than the aged and rusty alternative. On July 21, 2017, Eastern Shipbuilding completed its Initial Critical Design Review for the Offshore Patrol Cutter. But the Trump Administration also gets a coveted slab of election-year pork. With a tough contract on the line and the halting hurricane recovery reducing chances the yard could recruit and retain enough workers, Eastern Shipbuilding Group was in an impossible position. [23] On October 15, 2016 the Coast Guard issued a notice to proceed with the detailed design of the Offshore Patrol Cutter to Eastern Shipbuilding. The U.S. Coast Guard (USCG) announced the award of Offshore Patrol Cutter (OPC) industry studies contracts to eight shipbuilders on March 20. In total, the 25-ship deal could be worth up to $10.5 billion. U.S. Stealth Drone Gets Sensor Pod To ‘See First, Strike First’ In Air-To-Air Combat, Biden Must Move Fast And Kill The Freedom Class LCS, encroaching illegal fishermen ever before. A lot has changed in the maritime over the past six years. The news has roiled America’s naval shipbuilding community. [19] [26], On August 3, 2017, it was announced that the OPC's will be named "Heritage class" and the first 11 OPCs were named. The Trump Administration, while dealing their political allies a humiliating setback in the 2020 battleground state of Florida, is actually helping keep Eastern Shipbuilding alive. [7] The cutters have increased interoperability with other USCG and Department of Defense assets, which provides increased communications and similar systems with other combatants such as the Mk 110 and the Mk 38, weapons used in both the United States Navy (USN) and the USCG. Today, the Coast Guard has managed to bring both their new large and small cutters online, and both are making enormous differences—their modest yet modern capabilities are helping the Coast Guard defend American sovereignty at sea, enjoying a high rate of at-sea drug interdictions, halting more encroaching illegal fishermen ever before, and helping the Coast Guard punch above their weight. Hurricane recovery work creates enormous demand for trained personnel, and recovery jobs pay far more than even top-tier shipyard wages. The yard gets a fresh start, and will now be able to operate within the limited capacity of the still-shattered Florida Panhandle. Few high-quality naval shipyards are eager to be associated with a design they are not familiar with that they fear might result in a problematic “dud” of a ship. [13] The cutter's .50 caliber mounts and Mk 38/Mk 110 combination also give the cutter protection against fast attack craft. As the 2009 collapse in oil prices shrank demand for Gulf Coast oilfield support craft, the Offshore Patrol Cutter contract offered the Eastern Shipbuilding Group a safe, long-term lifeline. This ensures that the Heritage class has the required interoperability to execute naval warfare tasks with the USN. The multi-mode naval radar also provides Gun Weapon System cueing and supports the cutter's self-defense and limited air defense capability. [11] The Heritage-class cutters are equipped with the same 220 rpm Bofors 57 mm gun as mounted on the USN's Littoral combat ships and the USCG's Legend-class cutters. The situation was bleak. Let’s Not Screw It Up. To win this contract, Eastern Shipbuilding Group had to beat several larger and more experienced defense contractors. In my spare time, I support think-tank studies, [14] The WMSM will have the capability and equipment to escape from a CBRNE and/or TIC contaminated environment. After the Offshore Patrol Cutter contract was awarded, observers wondered if Eastern Shipbuilding Group had overreached, underbidding the contract and offering the government too much for far too little. The Coast Guard is recompeting its potentially $10.5 billion Offshore Patrol Cutter contract because the program risks falling fatally behind schedule. The U.S. Coast Guard also gets the advantage of having two yards involved in the program—which adds more political cover to the program as well as increasing opportunities to inject added competition in the later stages of the procurement. Even though the Eastern design has passed a number of design reviews, there are already signs of buyer’s remorse within the U.S. Coast Guard. The … biological, radiological and nuclear (CBRN) challenges. [16][17], However, a bill passed by the United States Congress on November 15, 2011, imposed conditions on the USCG's capital expenditures, that revolved around the design of the Offshore Patrol Cutter, granting greater certainty to the project.[18]. Even in the best of scenarios, hurricane recovery is very difficult for shipyards, and for a yard looking to staff up to meet tough U.S. Government demands, the task is almost impossible. Heritage-class offshore patrol cutter programme details In September 2016, USCG contracted Eastern Shipbuilding Group to supply nine Heritage-class OPCs. The Coast Guard will release a Request for Information to see industry interest in re-competing the remainder of the offshore patrol cutter program of record.[32]. The Coast Guard has labored mightily in keeping their fleet of decrepit mid-sized cutters on the line for decades more than planned. Comments Off on Keel laid for first Coast Guards Offshore Patrol Cutter Argus Panama City, FL – The keel laying ceremony for the US Coast Guard’s, first of class, Offshore Patrol Cutter (OPC) ARGUS (WMSM-915), was held on April 28, 2020 at Eastern Shipbuilding Group’s Nelson Street facility. publishing op-eds and papers in places like the Washington Post, the Los © 2021 Forbes Media LLC. Florida-based Eastern Shipbuilding Group has cut the first steel for the US Coast Guard’s (USCG) second offshore patrol cutter (OPC). The design may also be obsolete. The cutters will also support Arctic operations.[5]. The Coast Guard’s mid-sized cutters are just too old and infirm to do the job they need to do. “The Offshore Patrol Cutter acquisition is the Coast Guard’s highest investment priority, and we are proud to announce this important milestone,” said Commandant of the Coast Guard Adm. Paul Zukunft. A total of 60 have been funded through FY2020, including four in FY2020. Despite Huge Losses, United Airlines Tries Talking Positively. The Coast Guard plans to spend more than $12 billion on 25 offshore patrol cutters. I offer blunt, uncompromising guidance on national security solutions, bringing complex security issues and oft-neglected defense topics to the attention of interested policymakers and the general public. [15], The cutter was originally proposed to replace aging medium endurance cutters with more capable and technologically advanced cutters as a part of the Integrated Deepwater System Program. With a total value of $10.5 billion, the Offshore Patrol Cutter (formally known as the Heritage (WMSM 915) class cutter) is a top Coast Guard procurement priority. And on Friday, just as Acting DHS Secretary Kevin McAleenan headed for the exits, that relief was granted. Computer graphic illustration of the Heritage-class cutter provided by Eastern Shipbuilding. There is where the Coast Guard’s emerging Offshore Patrol Cutter (OPC) enters the equation, a new ship envisioned as a more capable, better networked, larger and far more advanced, high- … These awards support the Coast Guard’s strategy to mitigate OPC program risk and complete the program of record by establishing a new, fair and open competitive environment to complete the OPC program of record. The cutters will be classified to American Bureau of Shipping Naval Vessel Rules with USCG addendum and will be built with a mix of military and commercial standards. maritime conflicts or challenges posed by maritime disruption from China's Coast Guard and maritime militias. If the contract had continued as planned, the Offshore Patrol Cutter Program would have gone downhill quickly. The service originally selected Eastern Shipbuilding Group as the preferred builder of the new class of cutters in 2016. [20] The Government Accountability Office denied contract appeals by VT Halter Marine and Ingalls Shipbuilding. On Friday, the U.S. Coast Guard announced its massive but troubled 25-ship Offshore Patrol Cutter program will be restructured. Each OPC will be powered by two FM-MAN 16V 28/33D diesel engines, each rated at 9763 bhp (7.28 MW) at 1000 rpm. WASHINGTON – The Department of Homeland Security, after extensive analysis by the U.S. Coast Guard and further review by a Contract Adjustment Board chaired by the Department’s Deputy Under Secretary for Management, has granted limited extraordinary contract relief to Eastern Shipbuilding Group (ESG) for the Offshore Patrol Cutter (OPC) contract under the authority of Public Law (P.L.) You may opt-out by. [27], On September 7, 2017, it was announced the USCG exercised a fixed-price option to procure long lead time materials for the first Heritage-class cutter. 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