Waste of the Day: Coast Guard Boats Are Behind Schedule, Over Budget
Topline: Two new kinds of boats being built for the Coast Guard are years behind schedule and will cost a combined $12.9 billion more than expected, according to a new report from the Government Accountability Office.
Key facts: The Coast Guard is developing 25 Offshore Patrol Cutters and three Polar Security Cutters to replace outdated boats. They were originally supposed to cost $63.8 billion to acquire and maintain until they are no longer usable.
But after delays and redesigns, new projections say the boats will actually cost $76.7 billion.
The Coast Guard ordered the first 25 boats in 2012. The boat is designed for long distances and can launch airplanes and other boats.
Partially because of a “manufacturing error with a key component of the propulsion system,” the boats will now be delivered in late 2024 with a lifetime cost of $64.6 billion. That’s three years late and $10.6 billion more than projected.
The Coast Guard also chipped in another $659 million to build the ships after the manufacturer’s facilities were damaged in a hurricane — which the GAO called “extraordinary contractual relief.”
The polar boat is designed for icy waters in the Arctic and Antarctic.
Those will also be delivered three years late in June 2027 because of an “immature design” that is still only 46% finished after four years of work. There are also supply shortages from the pandemic and the war in Ukraine.
The shipbuilders had a “lack of experience” with designing icebreakers and made calculation errors about their size. The polar boats will now be larger than expected and cost an extra $2.3 billion.
Background: These aren’t the only two Coast Guard boats whose price tag is rising behind the scenes.
Every year, the Coast Guard and other military agencies must submit a “wish list” to Congress of items they want funded in addition to their normal budget.
Auditors at OpenTheBooks have been investigating these wish lists. The Coast Guard requested an extra $1.6 billion in 2024, mostly to fund several kinds of cutter boats — some of which won’t even be built for another 10 years.
That includes $100 million to store the Offshore Patrol Cutters at a new pier in Rhode Island.
Summary: The Coast Guard says the Offshore Patrol Cutters are their “highest investment priority,” but there appears to be no limit on the size of that investment.
The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com
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