The United States Department of Homeland Security has announced the partial termination of a shipbuilding contract with Eastern Shipbuilding Group (ESG), saying it was wasteful of taxpayer’s money.The Coast Guard is reviewing
The United States Department of Homeland Security has announced the partial termination of a shipbuilding contract with Eastern Shipbuilding Group (ESG), saying it was wasteful of taxpayer’s money.
The Coast Guard is reviewing contracts which are failing to meet delivery agreements. An existing Offshore Patrol Cutter (OPC) contract with ESG has been slow to deliver four OPCs, so Secretary Kristi Noem partially canceled ESG’s contract for two out of the four OPCs expected from ESG in Panama City, Florida.
ESG’s delivery of OPC 1 was initially due in June 2023 but will now be completed by the end of 2026 at the earliest. ESG missed its April 2024 delivery for OPC 2. The Coast Guard stopped work on OPCs 3 and 4 after ESG notified the service earlier this year they could not fulfill their contractual duty to deliver all four OPCs without unabsorbable loss.
“This Administration is unwavering in its commitment to the American taxpayer and to a strong, ready Coast Guard,” said a Senior Homeland Security official. “We cannot allow critical shipbuilding projects to languish over budget and behind schedule. Our Coast Guard needs modern, capable vessels to safeguard our national and economic security, and we will ensure
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