Coast Guard Greenlights Cutter Construction Projects

U.S. Coast Guard Headquarters announced May 1 that the Department of Homeland Security has approved full production of the first of its Polar Security Cutters (PSC). Additionally, low-rate initial production of the Waterways Commerce Cutter has been approved.

“This is a significant milestone for the nation as it brings the Coast Guard closer to renewing and enhancing operational capabilities in both the American heartland and the polar regions,” the Coast Guard stated.

Approval for full production of the polar cutters enables the Coast Guard and Navy’s integrated program office to maintain program momentum and for the shipbuilder to accelerate hiring, the Coast Guard said.

The PSC is the first heavy polar icebreaker to be built in the United States in nearly 50 years. The Coast Guard is the sole federal agency responsible for icebreaking.

“Accordingly, the service must replace, modernize and grow its fleet of icebreakers to assure U.S. access and sovereignty in the polar regions,” the Coast Guard said. “The U.S. Coast Guard is committed to working with the administration and Congress to fulfill the president’s direction on icebreaker acquisition.”

On March 25, Bollinger Shipyards announced receipt of a $951.6 million fixed-price-incentive-firm-target contract modification from the Coast Guard to aid in advancing the detailed design and construction phase of the Polar Security Cutter program.

“Securing this contract modification has truly been a herculean effort and underscores the incredible trust the U.S. government has placed in Bollinger to build and deliver the first heavy polar icebreaker in half a century,” Ben Bordelon, president and CEO of Bollinger Shipyards, said at the time. “We wouldn’t be in the solid position we’re in today without the leadership and the tireless efforts of the entire team at Bollinger Mississippi Shipbuilding. Their hard work and dedication have successfully put the PSC program on a strong path forward after a rocky start under the previous, foreign-owned builder.”

The contract modification primarily supported operations at Bollinger Mississippi Shipbuilding, as well as contributions from third party facilities, the company said.

Bollinger acquired VT Halter in November 2022 after already holding the position as the largest privately owned shipyard in the United States. Since then, Bollinger has increased its Mississippi workforce by more than 61 percent.

The production decision for the waterways commerce cutter program entails the first eight hulls of the river buoy tender (WLR) and the inland construction tender (WLIC), variants the Coast Guard said are being acquired under a single contract due to significant design and systems commonality. A third tender type, called the inland buoy tender, will be acquired under a separate contract.

The first of the WLR and WLICs are expected to be delivered in fiscal year 2027, the Coast Guard said. The Coast Guard plans to acquire 16 river buoy tenders and 11 inland construction tenders to recapitalize what it described as an increasingly obsolescent tender fleet that supports the nation’s maritime transportation system.

The Coast Guard noted that the system facilitates the safe movement of more than $5.4 trillion in annual commerce and 30 million jobs.

At April’s River and Marine Industry Seminar, held by the Greater New Orleans Barge Fleeting Association (GNOBFA), guest speaker Rear Adm. David Barata was optimistic about the program moving forward, noting the cutting of steel that month in Bayou La Batre, Ala., for the first of the fleet of cutters.

In October 2022, the Coast Guard awarded a $1.19 billion contract to Denver-based Birdon America to build its Waterways Commerce Cutter program, including about $46 million to Birdon for pre-construction work. The Maritime Administration (MarAd) awarded Birdon a 2024 Small Shipyard Grant of just under $1 million for a new automated welding system at the shipyard Birdon purchased in Bayou La Batre. Birdon announced the acquisition of the shipyard January 31, 2024, from Metal Shark.

In its October update, Birdon CEO Jamie Bruce said the company would be opening new ‘’purpose-built, on-site facilities in the coming months,’’ with additional capital improvements underway. According to Birdon, the shipyard, when up and running, will have the capacity to build up to four vessels simultaneously and dock up to six vessels.

In August, Birdon received Coast Guard certification that its facility in Alabama meets requirements for docking, repairing and relaunching any Coast Guard vessel up to 589 long tons.

“This certification indicates that Birdon’s Alabama shipyard has the equipment, processes and technical capabilities necessary to lift and launch the new WCC vessels,” the company said at the time.

Additionally, Schottel has announced that Birdon plans to outfit the forthcoming WCCs with the company’s Schottel RudderPropellers (SRPs).