Coast Guard Cutter Procurement: Background and Issues for Congress

Publisher Marketing: The Coast Guard's program of record (POR) calls for procuring 8 National Security Cutters (NSCs), 25 Offshore Patrol Cutters (OPCs), and 58 Fast Response Cutters (FRCs) as replacements for 90 aging Coast Guard cutters and patrol craft. The NSC, OPC, and FRC programs have a combined estimated acquisition cost of about $21.1 billion, and the Coast Guard's proposed FY2015 budget requests a total of $768 million in acquisition funding for the three programs. NSCs are the Coast Guard's largest and most capable general-purpose cutters. They have an estimated average procurement cost of about $684 million per ship. The first four are now in service, the fifth through seventh are in various stages of construction, and long lead time materials (LLTM) are being procured for the eighth. The Coast Guard's proposed FY2015 budget requests $638 million for the NSC program, including $558.7 million for the eighth NSC. OPCs are to be smaller, less expensive, and in some respects less capable than NSCs. They have an estimated average procurement cost of about $484 million per ship. The first OPC is to be procured in FY2017. The Coast Guard's proposed FY2015 budget requests $20 million in acquisition funding for the OPC program. FRCs are considerably smaller and less expensive than OPCs. They have an estimated average procurement cost of about $73 million per boat. A total of 30 have been funded through FY2014. As of December 23, 2014, the first 10 had been commissioned into service, and the 11th was scheduled to be commissioned in January 2015. The Coast Guard's proposed FY2014 budget requests $110 million in acquisition funding for two FRCs and associated program costs. The NSC, OPC, and FRC programs pose several oversight issues for Congress. Congress's decisions on these programs could substantially affect Coast Guard capabilities and funding requirements, and the U. S. shipbuilding industrial base.