DHS Grants ESG Contract Relief for Offshore Patrol Cutters
The UNITED STATE Department of Homeland Security has actually provided amazing agreement alleviation to Eastern Shipbuilding Group pertaining to the very first 4 hulls in the Coast Guard’s Offshore Patrol Cutter (OPC) program as a result of effects from Hurricane Michael in 2018.
ESG sent its demand amazing agreement alleviation in June 2019 after their Panama City, Florida shipbuilding centers endured considerable damages as a of Hurricane Michael, a Category 5 tornado that came onto land October 10, 2018 along the Florida Panhandle.
Upon testimonial, Acting Secretary of Homeland Security Kevin K. McAleenan gave the demand, however restricted it to the very first 4 hulls under the agreement.
The Coast Guard in October 2016 granted ESG the agreement to style and also construct the very first collection of approximately 9 Offshore Patrol Cutters, noting the largest-ever vessel purchase agreement ever before granted in the background of theCoast Guard The Coast Guard prepares to develop a total amount of 25 OPCs, standing for a complete financial investment of even more $10 billion.
DHS gave the agreement alleviation under a 1958 regulation that allows an existing agreement might be modified or customized for factors of nationwide protection.
The DHS declaration stated the Coast Guard will quickly shift to a follow-on affordable agreement for the staying OPC program of document, bring into question ESG’s function in creating the following 5 OPCs in the very first collection.
The OPCs will certainly change the aging solution’s aging fleet of 29 tool endurance cutters, several of which are greater than half a century old.
Delivery of the lead OPC is prepared for 2021.