Sec. Noem cancels contracts for Offshore Patrol Cutters due to cost overruns

[1srelluc]

Noem cancels contracts with ESG for two Offshore Patrol Cutters

Helping Maritime Professionals Make Informed Decisions

www.marinelog.com

Department of Homeland Security Secretary Kristi Noem announced Friday that she was canceling the contracts for two of the four U.S. Coast Guard Offshore Patrol Cutters (OPCs) on order at Eastern Shipbuilding Group.

Cancelation of the ESG contracts, follows Secretary Noem’s June 5 announcement that she was canceling the order at Huntington Ingalls Industries (HII) for the Coast Guard’s eleventh National Security Cutter, saying, “this project was over time and over budget Now the money can be redirected to ensuring the Coast Guard remains the finest, most-capable maritime service in the world.”

The Department said that ESG’s delivery of OPC 1 was initially due in June 2023 but will now be completed by the end of 2026 at the earliest. ESG missed its April 2024 delivery for OPC 2.

The Coast Guard stopped work on OPCs 3 and 4 after ESG notified the service earlier this year they could not fulfill their contractual duty to deliver all four OPCs without unabsorbable loss.

US ship building is a bad joke. The USCG should have an allied nation (like S. Korea) build them, not only saving tax money but they would deliver on time.

Now audit the contractor, union, the CEO, and board of directors for the contracting companies. Find out where the money went.

 

[pknopp]

I have no issue with this but I'm not sure how doing it makes the Coast Guard the most capable maritime service in the world.

 

[1srelluc]

I have no issue with this but I'm not sure how doing it makes the Coast Guard the most capable maritime service in the world.

Yeah, odd statement from Botox Barbie for sure.

I would have been more impressed had she another builder lined-up and had announced that.

 

[Zincwarrior]

Can't top it:

 

[Blaster]

Yeah, odd statement from Botox Barbie for sure.

Who is Botox Barbie?

 

[progressive hunter]

I have no issue with this but I'm not sure how doing it makes the Coast Guard the most capable maritime service in the world.

can you name one better??

and how they are better??

 

[Kondor3]

US ship building is a bad joke. The USCG should have an allied nation (like S. Korea) build them, not only saving tax money but they would deliver on time.

Nahhhh...

1. nationalize the shipbuilding yard and pay-off the owners
2. hire Korean or Norwegian (or both) managers to run the place and teach Americans for eventual American management
3. keep the jobs here on-shore
4. return the yard to private control once it's got a good track record for proper performance of government contracts

...that, or build a number of government-owned yards and hire rotating shifts of contractors to staff the thing.

If... IF... memory serves correctly, the NAVY did, once-upon-a-time, own its own building capacity... perhaps it's time, again.

 

[pknopp]

can you name one better??

How does cancelling the ships make the Coast Guard better?

 

[progressive hunter]

How does cancelling the ships make the Coast Guard better?

tthat doesntt answer my uestion

 

[pknopp]

tthat doesntt answer my uestion

But it addresses my point.

 

[progressive hunter]

But it addresses my point.

only in your own mind,,

 

[g5000]

Noem cancels contracts with ESG for two Offshore Patrol Cutters

Helping Maritime Professionals Make Informed Decisions

www.marinelog.com

Department of Homeland Security Secretary Kristi Noem announced Friday that she was canceling the contracts for two of the four U.S. Coast Guard Offshore Patrol Cutters (OPCs) on order at Eastern Shipbuilding Group.

Cancelation of the ESG contracts, follows Secretary Noem’s June 5 announcement that she was canceling the order at Huntington Ingalls Industries (HII) for the Coast Guard’s eleventh National Security Cutter, saying, “this project was over time and over budget Now the money can be redirected to ensuring the Coast Guard remains the finest, most-capable maritime service in the world.”

The Department said that ESG’s delivery of OPC 1 was initially due in June 2023 but will now be completed by the end of 2026 at the earliest. ESG missed its April 2024 delivery for OPC 2.

The Coast Guard stopped work on OPCs 3 and 4 after ESG notified the service earlier this year they could not fulfill their contractual duty to deliver all four OPCs without unabsorbable loss.

US ship building is a bad joke. The USCG should have an allied nation (like S. Korea) build them, not only saving tax money but they would deliver on time.

Now audit the contractor, union, the CEO, and board of directors for the contracting companies. Find out where the money went.

Very wrongheaded thinking.

If there is one manufacturing industry we should be revitalizing in the United States, it is shipbuilding.

I'll be starting a topic about it soon. Stay tuned.

Our shipbuilding base is so weak it is pathetic. If you have an anemic shipbuilding pace, then of course each ship will have cost overruns. It's common sense that when you get to the cookie-cutter phase of production, costs come way down.

 

[g5000]

I have no issue with this but I'm not sure how doing it makes the Coast Guard the most capable maritime service in the world.

It won't.

It will be weaker.

 

[pknopp]

Very wrongheaded thinking.

If there is one manufacturing industry we should be revitalizing in the United States, it is shipbuilding.

I'll be starting a topic about it soon. Stay tuned.

Our shipbuilding base is so weak it is pathetic. If you have an anemic shipbuilding pace, then of course each ship will have cost overruns. It's common sense that when you get to the cookie-cutter phase of production, costs come way down.

When a company enters into a contract with the government they should be held responsible for meeting their deadlines and agreements.

 

[g5000]

can you name one better??

and how they are better??

China. Way better.

I'll be starting a topic about it. I'll tag you when I do.

 

[konradv]

Who is Botox Barbie?

Go back to sleep, grandpa!

 

[g5000]

When a company enters into a contract with the government they should be held responsible for meeting their deadlines and agreements.

Have you ever heard of a defense contractor that did not have cost overruns?

Me, either.

 

[pknopp]

Have you ever heard of a defense contractor that did not have cost overruns?

Me, either.

Because its been allowed.

 

[g5000]

The reason our politicians tolerate cost overruns is because each defense contract has requirements that each piece of the final product be built in the districts which have the appropriations and defense committee members.

And not just them. Anyone who can negotiate a "get" in exchange for a trade on some other bill.

 

[progressive hunter]

The reason our politicians tolerate cost overruns is because each defense contract has requirements that each piece of the final product be built in the districts which have the appropriations and defense committee members.

And not just them. Anyone who can negotiate a "get" in exchange for a trade on some other bill.

so you support this,,