In wake of USCG OPC work suspension, GAO cites acquisition issues

Work has halted on the US Coast Guard's initial Offshore Patrol Cutters, shown here in a rendering. (Eastern Shipbuilding Group)

A bit more than a week after the Florida-based Eastern Shipbuilding Group (ESG) acknowledged it was suspending work on the US Coast Guard (USCG) Offshore Patrol Cutter (OPC) construction programme, the US Government Accountability Office (GAO) noted continued acquisition concerns with the OPC effort.

According to public statements by ESG CEO Joey D'Isernia, the OPC's programme structure caused a significant and unsustainable financial strain for the company.

Confirming the OPC work suspension and related workforce reduction on 14 November, D'Isernia said, “This action allows us to remain financially stable and focused on delivering for our government and commercial customers. We've overcome a major hurricane and a global pandemic, and we will overcome this challenge as well.”

The impacts of hurricane, pandemic, and other challenges created hurdles that led to OPC programme delays and restructuring, according to the GAO report Offshore Patrol Cutter Coast Guard Should Gain Key Knowledge Before Buying More Ships, released on 25 November.

Workforce issues were among these challenges, the GAO noted, adding, “Coastguard officials stated that ESG's efforts to increase the workforce on OPC 1 had not met the programme's expectations. For example, they stated that the number of workers on OPC 1 has fluctuated over time. They further stated that this is, in part, because ESG has struggled to hire and retain qualified workers, resulting in the company needing to hire more inexperienced workers. This has affected efficiency.”

The GAO added, “ESG has struggled to complete the milestones associated with finishing construction of OPC 1. By November 2024, estimated delivery of the lead ship slipped by 6 months – from May 2025 to November 2025.”