Saturday, March 31, 2012

Contract Awarded for Long Lead Time Materials for Construction of Sixth National Security Cutter

March 30, 2012

Stratton transits Chesapeake Bay
The third NSC, Stratton, transits the Chesapeake Bay on Oct. 31, 2011. U.S. Coast Guard photo by Petty Officer 1st Class Andrew Kendrick.
The U.S. Coast Guard today exercised a contract option with Huntington Ingalls Industries, Inc. to procure Long Lead Time Materials (LLTM) for the construction of the sixth National Security Cutter (NSC).  The total value of the award is $87.9 million, approximately $1.7 million less than the LLTM contract option awarded for NSC #5 in January 2011.  The funds will be used to purchase components and materials to support construction of the new cutter, including steel plating, propulsion systems, marine turbine/diesel engines, ship integrated control system, switchboards and generators.   
The option award is divided into two phases.  The first phase, valued at $75.9 million, will procure the critical main propulsion and navigation systems, generators, electrical switchboards, major castings, and other items using amounts appropriated for LLTM in FY 2012.  The second phase, consisting of two separate options together totaling $12 million, will purchase valves and the Ships Integrated Control System.  The second phase will be supported with funding requested in the President's FY 2013 budget request.
The award of LLTM one year before production achieves a cost savings for the total acquisition cost of NSC #6 by allowing an earlier start of production efforts, reducing exposure to inflation risks and minimizing the time between production of NSCs #5 and #6.
Three NSCs have been delivered to the Coast Guard.  The first two NSCs, USCGC Bertholf and USCGC Waesche, are currently engaged in Coast Guard operations.  While on patrol from October to December 2011, Bertholf interdicted contraband with an estimated street value of $61 million.   During Waesche’s first patrol, from July to October 2011, her crew interdicted contraband with an estimated street value of $24.8 million.
The third NSC, Stratton, will be commissioned into service on March 31, 2012, in Alameda, Ca.  NSC #4 is in production at Ingalls Shipyards in Pascagoula, Miss.  Prefabrication activities for NSC #5 commenced March 6, 2012, in preparation for the start of production later this spring.

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