Coast Guard awards new polar icebreaker (I mean Polar Security Cutter) contract
It’s really happening.
After a 40-year drought of polar icebreaking construction for the USCG, they just issued a real contract.
The interesting thing is, it will be built in a swamp right around the corner from me at a facility where I trained the security forces for years. They have built a number of phibs for the Army as well as frigate-sized survey/AGOR types for the MSC/NOAA and the Navy in recent years. As far as I can tell, this would be the largest ship they have ever produced.
Additional footnote: Ingalls, just down the river from VTH, used to build icebreakers back in the 1950s, and they made the largest U.S. Naval breaker, the 9,000-ton USS Glacier (AGB-4).
The contract announcement, issued by the Navy:
VT Halter Marine Inc., Pascagoula, Mississippi, is awarded a $745,940,860 fixed-price incentive-firm contract for the detail design and construction of the U.S. Coast Guard (USCG) Polar Security Cutter (PSC) (formerly the Heavy Polar Ice Breaker). The PSC program is a multiple year Department of Homeland Security Level 1 investment and a USCG major system acquisition to acquire up to three multi-mission PSCs to recapitalize the USCG fleet of heavy icebreakers which have exhausted their design service life. The PSC’s mission will be to ensure continued access to both polar regions and support the country’s economic, commercial, maritime, and national security needs. This contract includes options which, if exercised, would bring the cumulative value of this contract to $1,942,812,266. Work will be performed in Pascagoula, Mississippi (61 percent); Metairie, Louisiana (12 percent); New Orleans, Louisiana (12 percent); San Diego, California (4 percent); Mossville, Illinois (4 percent); Mobile, Alabama (2 percent); Boca Raton, Florida (2 percent); and various other locations (3 percent), and is expected to be completed by June 2024. If all options are exercised, work will continue through November 2027. Fiscal 2019 procurement, construction, and improvement (Coast Guard); and fiscal 2018 and 2017 shipbuilding and conversion (Navy) in the amount of $839,224,287 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website, with three offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-2210).
WASHINGTON — Today, the U.S. Coast Guard and U.S. Navy, through an Integrated Program Office (IPO), awarded VT Halter Marine Inc., of Pascagoula, Mississippi, a fixed price incentive (firm) contract for the Detail Design and Construction (DD&C) of the Coast Guard’s lead Polar Security Cutter (PSC).
The initial award is valued at $745.9 million and supports non-recurring engineering and detail design of the PSC class as well as procurement of long lead-time materials and construction of the first ship. The contract also includes options for the construction of two additional PSCs. If all options are exercised, the total contract value is $1.9 billion. PSCs support a wide range of Coast Guard missions including search and rescue, maritime law enforcement, environmental response, and national defense missions.
The U.S. Coast Guard is the nation’s lead agency responsible for providing assured surface access in the polar regions. This contract award supports the United States’ ability to recapitalize heavy polar icebreaker capabilities that are vital to our nation’s ability to conduct national missions, respond to critical events, and project presence in the polar regions.
“Against the backdrop of great power competition, the Polar Security Cutter is key to our nation’s presence in the polar regions,” said Admiral Karl L. Schultz, Commandant of the Coast Guard. “With the strong support of both the Trump Administration and the United States Congress, this contract award marks an important step towards building the nation’s full complement of six polar icebreakers to meet the unique mission demands that have emerged from increased commerce, tourism, research, and international activities in the Arctic and Antarctic.”
The acquisition of Polar Security Cutters is being jointly managed across the U.S. Navy and U.S. Coast Guard through an IPO that leverages the expertise and utilizes best practices across each enterprise to deliver a fleet of highly capable, multi-mission ships in the most cost-efficient and timely manner possible. NAVSEA is the lead contracting authority.
“This contract award reflects the great benefit achieved by integrating the incredible talents of U.S. Coast Guard and Navy acquisition and shipbuilding professionals to deliver best value at speed,” said James Geurts, Assistant Secretary of the Navy for Research, Development and Acquisition. “Working with our industry partners, the team identified approximately $300 million in cost avoidances and accelerated the schedule for delivery of this capability to the nation by almost three years. This reflects the urgency in which we are operating to ensure we deliver capabilities necessary to support the U.S. Coast Guard and the nation’s missions in the polar regions.”
Construction on the first PSC is planned to begin in 2021 with delivery planned for 2024; however, the contract includes financial incentives for earlier delivery.
The U.S. Coast Guard and U.S. Navy are committed to working together to ensure the success of this program and to deliver the capabilities necessary to meet national defense and homeland security mission demands in the polar regions.
More on the Polar Security Cutter program here.
It should also be pointed out that this means just about every new vessel being built for the Coast Guard is being made inside a 300-mile ride down I-10 along the Gulf of Mexico from Panama City, Florida to New Orleans. Ingalls is producing the large (4,500-ton/418-foot) Legend-class National Security Cutter, Eastern Shipbuilding Group in PC makes the (3,700-ton/360-foot) Heritage-class Offshore Patrol Cutter, Bollinger in NOLA makes the 158-foot Sentinel-class Fast Response Cutter, and now VTH has the Polar Security Cutter.