Department of Homeland Security Secretary Kristi Noem is holding a shipbuilding company accountable for repeatedly failing to meet its deadlines and “delivery agreements.”
Noem announced the partial cancellation of a contract last week with Eastern Shipbuilding Group after the company failed to fulfill four previously agreed-upon orders for Offshore Patrol Cutters, according to a press release from DHS. Only two of the four OPCs were delivered. She canceled the contract because of the company’s inefficiencies, which she said were ineffective use of taxpayer dollars.
“This Administration is unwavering in its commitment to the American taxpayer and to a strong, ready Coast Guard,” said a DHS official. “We cannot allow critical shipbuilding projects to languish over budget and behind schedule.”
OPCs are vessels used by the Coast Guard to conduct nautical missions in the open ocean and close to shore. The Coast Guard uses OPCs for a variety of purposes, including search and rescue, law enforcement investigations, efforts to prohibit the smuggling of drugs, and efforts to prevent illegal immigrants from entering the country along the shores. In some instances, OPCs assist with Arctic initiatives in Alaska. They are also used for other “homeland security and defense operations.” The presence and availability of these vessels are vital.
The DHS release noted that the company was supposed to deliver the first OPC in June 2023 but missed its deadline. It will now be completed by early 2026. ESG also missed its delivery for the second OPC, which was supposed to occur in April 2024. The shipbuilding company notified the Coast Guard that it could not “fulfill their contractual duty to deliver all four OPCS without unabsorbable loss.”
“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,” the official added. “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 blame for these failures was due to “previous administrations and Congress,” the release noted.
“Due to decades of neglect by previous Administrations and Congress, the Coast Guard has been underfunded, underequipped, and ignored for too long,” read the release. “President Donald Trump is ending that era of neglect with the passage of the One Big Beautiful Bill and Force Design 2028 – Homeland’s plan to transform the Coast Guard into a more agile, capable fighting force. Now, a massive injection of nearly $25 billion is coming to the Coast Guard.”
While no information was provided on replacements for the two canceled OPCs, the DHS stressed the commitment to providing the Coast Guard with all the OPCs it needs to operate and to do so as “fast as possible.” The federal agency also mentioned the importance of the OPC fleet in “counter-drug and migrant interdiction missions along the southeast border.”
“The Coast Guard’s goal is to procure 25 OPCs — and that has not changed,” noted the release. “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.”