This post was updated to accurately reflect the size of the Offshore Patrol Cutter contract the Coast Guard is re-competing. Naval Institute, Assailant in NAS Pensacola Mass Shooting Was Saudi Aviation Student; Navy Identifies Slain Victims. Eastern Shipbuilding officials could not be reached for comment at the time of this post. ... low because it assumed the “Crew Rotation Concept” would be applied to all National Security Cutters and Offshore Patrol Cutters, allowing an unrealistically high 225 days away from home. …Now they have to prove it.”. The service’s chief acquisition civilian James Knight added, “we want to find out what we need to do to level that playing field” to draw interest from other shipyards. A new GAO (Government Accountability Office) report into the U.S. Coast Guard’s Offshore Patrol Cutter (OPC) program is critical of several aspects of the acquisition strategy and makes eight recommendations that, it says, could reduce risk. An earlier version of this post included an incorrect number of hulls included in the re-compete. The study, along with an industry day scheduled for next Wednesday, is intended to give the Coast Guard an assessment of the technical effort, cost risks and schedule risks associated with recompeting the OPC contract. The OPC will provide a capability bridge between the national security cutter, which patrols the open ocean in the most demanding maritime environments, and the fast response cutter, which serves closer to shore. This post has been updated to correct the headline. The Coast Guard previously set a target cost of $310 million per cutter. —– The 27 Nov. Update Labor shortages are causing the Coast Guard’s $10.5-billion Offshore Patrol Cutter program to fall 12 months behind schedule and risk running over budget. A government watchdog agency issued a report on reducing risks for a $12 billion acquisition of 25 Offshore Patrol Cutters, citing its design process, a deficient construction schedule and incomplete cost estimate. Naval Institute. The Coast Guard last Friday released a draft statement of work (SOW) for its planned recompete of its Offshore Patrol Cutter (OPC) vessels and is seeking industry feedback on a proposed schedule and on potential acceleration of ship construction. The decision to recompete has raised a number of “Issues For Congress” beginning on page 19 and continuing through page 23, including consideration of a 12th National Security Cutter in view of the delays in the delivery of Offshore Patrol Cutters. The chief lobbyist for Eastern Shipbuilding is former commandant of the Coast Guard, retired Adm. Robert Papp, who joined the company shortly after being awarded the initial OPC contract. Offshore Patrol Cutters. “We think we have a pretty mature design” for the cutters, but “cost will be relevant” in deciding which yard or yards will receive the contract,” Schultz said. “Do they have the production capability.”. “The GAO’s concerns outlined in this report reinforce the bipartisan concerns of our Committee. Comments Off on DHS, Coast Guard extend limited contract relief for Offshore Patrol Cutter. “We want to have a legitimate competition,” Schultz said in answer to an audience question. The service is asking potential bidders to provide analysis comparing their anticipated costs with this target for building the six OPCs. 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. . The service may know more about the way ahead following a meeting Wednesday in Baltimore with shipbuilders interested in bidding in the re-competition for a contract potentially worth $10.5 billion. Eastern Shipbuilding laid the keel for its first-in-class offshore patrol cutter, the future Argus, on April 28, 2020. Eastern Shipbuilding image. The lawmakers are concerned the Coast Guard and Department of Homeland Security focused on “exploring options to resuscitate [Eastern Shipbuilding Group] and prevent it from defaulting on the OPC contract without first completing a transparent and objective alternative analysis.”. Beam: 2016 : 54 Feet (Coast Guard photo … Further, we are concerned that this relief sets a damaging precedent that any current or future contract with the United States Coast Guard (Coast Guard or Service) could be renegotiated outside the Federal Acquisition Regulations,” their letter states. Eastern beat General Dynamics Bath Iron Works and Bollinger Shipyards to land the design and construction contract. “We really need industry input to see where flexibility” can be achieved because “we get the benefits of that” in drafting the request for proposals that could go out this month. He earned a bachelor’s degree from the University of Maryland and a master’s degree from New York University. DHS Curtails Eastern Shipbuilding’s Offshore Patrol Cutter Contract, Plans Immediate Recompete Notional OPC design is 360-feet long, a 54-foot beam, and 17-foot draft. When they enter service, the new ships will be replacing cutters averaging about 50 years of age. Flexible mission modules and modular manning concepts make almost any role possible. The storm displaced many residents of the area, and skilled workers were lured away to other jobs in the region. Follow @Wernertime//platform.twitter.com/widgets.js, Coast Guard to Re-Compete Multi-Billion Dollar Offshore Patrol Cutter Contract, Member Services call 800-233-8764 or 410-268-6110, statement released by Sen. Marco Rubio (R.-Fla.), by the Center for Strategic and International Studies and the U.S. Heritage-class Offshore Patrol Cutter (OPC) WMSM Maritime Security Cutter Medium. An artist’s conception of Eastern Shipbuilding’s Offshore Patrol Cutter design. Schultz added the Panama City-Fla.-builder had to show that it can deliver the 21 cutters that would be needed. Congressional leaders detailed their concerns in a bipartisan letter to the Coast Guard sent Nov. 25, from Rep. Peter DeFazio (D-Ore.); the chair of the House Committee on Transportation and Infrastructure; ranking member Rep. Sam Graves (R-Mo. The Coast Guard divided the Offshore Patrol Cutter (OPC) program into two stages and revised its cost and schedule goals following widespread disruptions from Hurricane Michael in October 2018, which led the shipbuilder to request relief from certain requirements under contract. The Coast Guard released a final request for proposal (RFP) Jan. 10, 2020, for industry studies to support offshore patrol cutter (OPC) follow-on production. The Coast Guard is recompeting its potentially $10.5 billion Offshore Patrol Cutter contract because the program risks falling fatally behind schedule due to hurricane damage to the shipyard initially awarded the contract. An artists rendition of the Coast Guards new Offshore Patrol Cutter originally due to be delivered in Fiscal Year 2021. The two OPCs will be based at Naval Station Newport, R.I., home of the Naval War College, Navy … WASHINGTON – The Department of Homeland Security, in close coordination with the U.S. Coast Guard, granted extraordinary relief to the Eastern Shipbuilding Group (ESG) for the Offshore Patrol Cutter (OPC) under the authority of Public Law (P.L.) These vessels are optimised to fulfil duties including military security, safety and humanitarian tasks. The re-competition is an extraordinary step but is designed to hold down costs and try to put the program back on schedule. Eastern has to show it still has the workforce available to complete the work, even if all the hurricane destruction was repaired. In September 2016, the Coast Guard awarded Eastern Shipbuilding Group a contract to build the future USCGC Argus (WMSM-915) with options to build up to nine OPCs. “They have to be able to show us [they have] the workforce,” Schultz said. These awards support the Coast Guard’s strategy to mitigate OPC program risk and establish a new, fair and open competitive environment to complete the OPC … Hi, One thing that really sticks out to me about the notional information on the OPC in comparison to similar data for the LCSs is just how different the Coast Guard and Navy's approach to ships this size is. By: Ben Werner. He has worked as a freelance writer in Busan, South Korea, and as a staff writer covering education and publicly traded companies for The Virginian-Pilot in Norfolk, Va., The State newspaper in Columbia, S.C., Savannah Morning News in Savannah, Ga., and Baltimore Business Journal. Eastern beat General Dynamics Bath Iron Works and Bollinger Shipyards to land the design and construction contract. 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.) ARLINGTON, Va. — The head of the Coast Guard said production of the service’s Offshore Patrol Cutter construction is almost a year behind schedule due to damage from Hurricane Michael. 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. The first OPC, Argus, was funded in Fiscal Year 2018. It reports that “contract relief” will be granted to Eastern Shipyard for construction of the first four ships but that the Coast Guard will reopen bidding for the follow on ships. March 20, 2020 — The Coast Guard announced the award of eight Offshore Patrol Cutter (OPC) industry studies contracts March 20, 2020. “The Offshore Patrol Cutter is a vital tool to advancing the Coast Guard’s mission,” said Maloney. Commandant Adm. Karl Schultz expects delivery of the first of the cutters from Eastern Shipbuilding in 2023 with the next three to be delivered in succeeding years, he said speaking at a Navy League breakfast. The Coast Guard plan would allow Eastern Shipbuilding to continue building the first four OPCs but would move forward with seeking new bidders to build out the fleet, Adm. Karl Schultz, the commandant of the Coast Guard, said during an event co-hosted by the Center for Strategic and International Studies and the U.S. Acquisition of the offshore patrol cutter (OPC) is the Coast Guard’s highest investment priority. This post was updated to accurately reflect the size of the Offshore Patrol Cutter contract the Coast Guard is re-competing. Lawmakers, though, did not sound too receptive to the plan. The program has already slipped nearly a year behind schedule and could cost an additional $659 million to finish just the first four OPCs contracted to Eastern Shipbuilding Group as part of a nine-hull deal awarded in 2016, according to a recent Congressional Research Service report. Acquisition of the offshore patrol cutter is the Coast Guard’s highest investment priority. determined that limited relief, in parallel with immediate recompete, is the best option in this exceptional situation. 85-804. The two OPCs will be based at Naval Station Newport, R.I., home of the Naval War College, Navy … “Eastern has the right to re-compete,” he said. Meanwhile the Coast Guard will recompete a contract for OPC #5 with options for #6-15. The Coast Guard must learn from this report and move forward in a financially responsible and efficient way on this process.” To reign-in costs and try getting the program back on schedule, the Coast Guard is now taking the extraordinary measure of recompeting the entire contract for OPC hulls five through 25. The Coast Guard intends to purchase up to 25 OPCs making this the service’s largest acquisition program. His reporting on national defense and national security has appeared on Breaking Defense, GovExec.com, NextGov.com, DefenseOne.com, Government Executive and USNI News. An artist’s conception of Eastern Shipbuilding’s Offshore Patrol Cutter design. However, the current prime contractor, Panama City, Fla.-based Eastern Shipbuilding Group, is having a hard time fulfilling the contract due to damage caused in 2018 by Hurricane Michael. The Coast Guard needs to stabilize its design for the offshore patrol cutter before construction moves forward on the third vessel in its accelerated acquisition and build program that was “significantly disrupted” by 2018’s Hurricane Michael, the Government Accountability Office said in a … The second OPC, the future USCGC Chase (WMSM-916) and long-lead-time materials for the third OPC were funded in the FY 2019. Eastern Shipbuilding was just about to start building Argus and was gathering materials to start building Chase when Hurricane Michael hit the Florida panhandle, USNI News reported in October 2018. Schultz said the delays could raise the price of the first four cutters by more than $650 million. Adm. Charles W. Ray, vice commandant of the Coast Guard, discusses the construction of the first offshore patrol cutter with a welder during his visit to the Eastern Shipbuilding Group shipyard in Panama City, Florida, on March 14, 2019. When they did, many took jobs rebuilding nearby Tyndall Air Force Base, which also suffered substantial damage from the hurricane, according to a statement released by Sen. Marco Rubio (R.-Fla.). The first of the new offshore patrol cutters is still likely to be about 10 months behind schedule as Eastern Shipbuilding Group recovers from the … The Heritage-class cutter, also known as the Offshore Patrol Cutter and the Maritime Security Cutter, Medium, is one design among several new cutter designs developed as part of the United States Coast Guard Integrated Deepwater System Program. A new report from the U.S. Government Accountability Office (GAO) has reinforced bipartisan concerns from the Transportation and Infrastructure Committee leaders regarding the U.S. Coast Guard’s $12 billion shipbuilding contract. “These activities will provide fresh insight into the current state of the shipbuilding industrial base and inform the Coast Guard’s way forward on a re-compete strategy to complete the OPC program of record,” Brian Olexy, the communication manager for the Coast Guard Acquisition Directorate, told USNI News in an email. The future USCG Offshore Patrol Cutter (ESG) ... “This review . “We are skeptical that such truly extraordinary relief is justified given that this ‘crisis’ was foreseeable and mostly avoidable. “DHS, Coast Guard extend limited contract relief for Offshore Patrol Cutter” –CG News Release Posted on October 11, 2019 Below is a news release in full. In October, the Coast Guard asked Congress for extraordinary relief from the contract, on behalf of Eastern Shipbuilding. Acquisition of the offshore patrol cutter (OPC) is the Coast Guard’s highest invest-ment priority. The OPC will provide a capability bridge between the national security cutter, which patrols the open ocean in the most demanding maritime environments, and the fast response cutter, which serves closer to shore. Moving quickly in the wake of a major change in its original contract for a new medium-class cutter, the Coast Guard on Friday released a notional schedule for the revamped acquisition schedule for the Offshore Patrol Cutter (OPC) showing plans to issue a Request for Proposal (RFP) for industry studies in early 2020 leading to a contract award in late fiscal year 2022 for detail design and … This can go a lot of different ways. ”, he added, “ Eastern has a reputation of good... 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