Noem cancels contracts with ESG for two Offshore Patrol Cutters

Offshore Patrol Cutter [Image ESG]

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.

“This administration is unwavering in its commitment to the American taxpayer and to a strong, ready Coast Guard,” said a senior Homeland Security official. “We cannot allow critical shipbuilding projects to languish over budget and behind schedule. Our Coast Guard needs modern, capable vessels to safeguard our national and economic security, and we will ensure every dollar is spent wisely to achieve that mission. This action redirects resources to where they are most needed, ensuring the Coast Guard remains the finest, most-capable maritime service in the world.”

“The Coast Guard’s goal is to procure 25 OPCs — and that has not changed,” said the DHS announcement. “The Coast Guard remains intent on acquiring and delivering the full OPC class as fast as possible to address the nation’s security and safety needs.”

• Read the full announcement HERE