CBO: Cost of Coast Guard's Heavy Icebreakers Could Jump By 60 Percent

 

After analyzing the U.S. Coast Guard's projections for the future Polar Security Cutter program, the Congressional Budget Office estimates that the cost of the three-ship series of icebreakers could approach $5 billion - about 60 percent more than the current official projection. The Coast Guard previously raised its own estimate by 20 percent because of challenges in the program, and is currently undertaking another revision. 

The icebreaker program program has been beset by delays. The first hull was originally awarded to VT Halter in 2019 and was expected to deliver this year. Halter has since been acquired by Bollinger, and the program has been advancing slowly because of incomplete design work, according to the CBO.

Like the design for the U.S. Navy's Constellation-class frigate, the design for the Polar Security Cutter started life as an off-the-shelf hull form from Europe. Both programs have gone through years of design changes, and both have more work ahead at the drafting table. According to the CBO, the design for the Coast Guard's heavy icebreaker program was less than 60 percent complete as of July. 

CBO also believes that the conversion of the Coast Guard's soon-to-be-purchased commercial icebreaker, the anchor handler Aiviq, will take "at least two years." This is longer than previously reported, and would push Aiviq's entry into service back to late 2026 at the earliest. 

The service's sole medium icebreaker, USCGC Healy, is out of service because of a recent electrical fire. CBO raised the new possibility that it might not be fully fixable. "The Coast Guard is uncertain when or if the ship will be able to resume normal operations," CBO warned. 

The office warned that costs would rise if the Coast Guard decided to bring another shipyard into the program. 

"If Bollinger is unable to build the ships, or if the service wants more PSCs faster than the shipyard can build them, then the costs of the program will probably be higher because the new yard will be building its own lead ship, which is a notoriously difficult task, and because each yard will experience less learning from building fewer ships," CBO cautioned. 

The White House has been encouraging Canadian icebreaker builder Davie to start up a new shipyard partnership in the United States, with plans to attract foreign orders for series production and export.