US Coast Guard's Polar Security Cutter Program Hit By 60% Cost Hike

USCG Polar Security Cutter — Image Credits: USCG

Analysts from the Congressional Budget Office (CBO) will reveal alarming reports about the escalating costs of the US Coast Guard’s Polar Security Cutter program at a hearing before the Transportation and Maritime Subcommittee of the US House of Representatives Committee of Homeland Security.

According to an advance copy of the opening statement by Eric Labs, Senior Analyst for Naval Forces and Weapons, procurement costs for the program are expected to increase by almost 60% over the Coast Guard’s latest estimates.

The Coast Guard launched the Polar Security Cutter program in 2013 to replace outdated vessels such as the Polar Star and the Healy.

However, the program has experienced multiple delays and cost overruns.

The original plan was to build three medium and three heavy polar icebreakers.

However, the advanced age of the existing vessels has highlighted the necessity for significant life-extension initiatives.

The Coast Guard’s attempts to preserve these vessels, such as salvaging parts from the idled sister ship Polar Sea and replacing massive engines on Healy, demonstrate the critical need for modernisation.

Despite awarding the lead vessel contract to VT Halter Marine (later bought by Bollinger) in April 2019, design work has been hampered by delays caused by the COVID-19 epidemic.

The Government Accountability Office’s (GAO) adverse study in July 2023 highlighted various faults with the program, prompting calls for procedural reforms.

While the Coast Guard blamed delays on the project’s complexity, the shipyard stressed the project’s unusual nature, claiming a lack of recent comparable undertakings in the United States.

Test portions have been used to demonstrate progress, but the program receives criticism from Congress and monitoring organisations.

The CBO’s analysis, which uses historical data from the Healy and accounts for the increased size and capabilities of the new vessels, estimates a cost of $1.9 billion for the lead ship, with succeeding vessels costing $1.6 billion each.

The forecast puts the program’s entire cost at $5.1 billion, 60% higher than the Coast Guard’s current estimate.

In response to changing geopolitical dynamics in the Arctic, the Coast Guard has altered its needs, recommending a fleet of eight or nine icebreakers to maintain a year-round presence in vital areas.

The extended scope emphasises the importance of addressing the program’s issues.

In light of these disclosures, the subcommittee’s chairman, Representative Carlos Gimenez (R-FL), has scheduled a hearing for May 7 to examine the Coast Guard’s shipbuilding and acquisitions procedures.

The focus will be on methods to modernise the fleet and speed procurement projects overseen by the Department of Homeland Security.

Reference: CBO

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