OPC program to be restructured

The Coast Guard announced Oct. 14 its 25-ship Offshore Patrol Cutter program will be restructured. With a total value of $10.5B, the OPC is a high procurement priority. The contract to build these mid-size cutters was awarded to Eastern Shipbuilding Group of Panama City, Fla., in 2016. After restructuring, the CG will now only offer ESG options to build four of the $421M ships. The remaining 21 will likely be put out for re-bidding. ESG had previously out-bid larger and more experienced defense contractors. Industry observers began wondering if ESG bit off more than it could chew. After the ward, ESG’s shipyards were leveled by Hurricane Michael in October 2018. On June 30, ESG requested “extraordinary cost and schedule relief” from the Department of Homeland Security. Acting DHS Secretary Kevin McAleenan granted the relief last Friday. Department of Homeland Security crafted an agreement where almost everybody actually won. Eastern Shipbuilding Group survives as an operational concern, and the Offshore Patrol Cutter Program advances. (Source: Forbes 10/14/19) https://www.forbes.com/sites/craighooper/2019/10/14/us-coast-guard-reorganizes-troubled-105-billion-25-cutter-program/#b73e54c2eda8