U.S. Coast Guard Awards its Biggest Shoreside Construction Contract Ever
The U.S. Coast Guard is moving swiftly to capitalize on the multi-billion-dollar cash infusion it received from the One Big Beautiful Bill Act, the supplemental spending agreement enacted last year. Its latest contract signing is a $200 million award for the reconstruction of Coast Guard Station South Padre Island in Texas, a key installation for border control and fisheries enforcement. It is the largest single order for a shore infrastructure construction project in the agency's history.
The Coast Guard selected The Haskell Company to carry out the design-build contract. The contractor has worked with the Coast Guard many times in the past on shoreside infrastructure, including nearly a dozen contracts since 2023, and this is its largest award yet. The contract covers the construction of 120,000 square feet of building space, including a new three-bay boathouse, a shop space and a three story command center. The station will see considerable use: it is the busiest in Texas, thanks to a location just six miles from the border.
The current station (USCG)
The future station (USCG)
Despite the cost and scale of the project, the Coast Guard moved with unusual speed. Planning was completed in 45 days and the contracting award in just four months. In total, the award procedure was about two years shorter than normal. The Coast Guard's funding from the One Big Beautiful Bill Act will expire in late 2029, so the service is working against a deadline to get contracts awarded and completed.
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The station's boathouse was damaged in a fire in April 2025, according to the Coast Guard. The crew returned to patrol work and interdictions the next day, despite the damage. "By rebuilding Station South Padre Island, we’re empowering the crew there to continue their courageous work and make America safe again," said DHS secretary Kristi Noem in a statement.
In addition to the investments at South Padre Island, Coast Guard installations around the country will be getting historic investments. The Coast Guard Yard is getting a new floating drydock for $500 million; Alaska is getting a new icebreaker homeport for $300 million; and the service's enlisted bootcamp at Cape May is getting a $425 million revamp.
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