{"id":66049,"date":"2023-12-18T21:51:49","date_gmt":"2023-12-18T21:51:49","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2023\/12\/18\/new-court-doc-sheds-light-on-austals-2022-offshore-patrol-cutter-win\/"},"modified":"2026-08-08T01:03:47","modified_gmt":"2026-08-08T01:03:47","slug":"new-court-doc-sheds-light-on-austals-2022-offshore-patrol-cutter-win","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/naval\/2023\/12\/18\/new-court-doc-sheds-light-on-austals-2022-offshore-patrol-cutter-win\/","title":{"rendered":"New court doc sheds light on Austal\u2019s 2022 Offshore Patrol Cutter win"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The U.S. Coast Guard, when selecting Austal USA over Eastern Shipbuilding Group to build the next 11 Offshore Patrol Cutters, highly valued Austal\u2019s indoor steel assembly facility and lower price tag, according to recently unsealed documents from the U.S. Court of Federal Claims.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The court last month ruled against Eastern Shipbuilding, which had appealed the Coast Guard\u2019s decision. The court unsealed the case documents Dec. 14, though with some redactions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among the revelations in the documents are that Eastern\u2019s bid was judged to present less risk and included a superior design approach.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Austal was the only bidder credited with a \u201csignificant strength,\u201d for its indoor assembly facility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And while Eastern scored better on the five non-price factors, which were supposed to be weighted more heavily in the final decision than price, the Coast Guard determined the two \u201capproached equality\u201d in their scores such that Austal\u2019s lower price tipped the scales.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, Austal\u2019s proposal came to $3.22 billion, or about $292 million per hull, according to the unsealed documents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eastern\u2019s price is redacted in the documents but is characterized as a \u201cvery large price differential.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eastern Shipbuilding\u2019s winning bid in 2016, when the OPC program was first awarded, came to about $264 million per hull \u2014 but the cost of labor and material have increased substantially since.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Though Eastern won the original 2016 deal, the Coast Guard rebid the program after the Florida yard was devastated by Hurricane Michael in 2018. The Coast Guard <a href=\"https:\/\/www.defensenews.com\/naval\/2022\/06\/30\/coast-guard-selects-austal-to-build-offshore-patrol-cutters-over-incumbent-eastern-shipbuilding\/\">announced in June 2022 it selected Austal<\/a> to build the next phase of 11 ships.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.defensenews.com\/naval\/2022\/07\/21\/eastern-shipbuilding-protests-coast-guard-award-of-cutter-contract-to-austal\/\">Eastern protested the award<\/a> to the Government Accountability Office two weeks later, and in October 2022 it <a href=\"https:\/\/www.defensenews.com\/naval\/2022\/10\/06\/eastern-shipbuilding-says-it-will-go-to-court-over-cutter-program\/\">dropped the GAO protest to instead appeal to the U.S. Court of Federal Claims<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eastern\u2019s lawsuit \u201ccontends that the Coast Guard made a number of errors when it evaluated the technical merits of the proposals,\u201d according to the court document, which addresses each claim. In each, the court either denied the merit of the claim or found the court lacked authority to go against the Coast Guard\u2019s assessment criteria.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/s3.amazonaws.com\/static.militarytimes.com\/assets\/pdfs\/1702926418.pdf\"><i><b>CLICK HERE TO VIEW THE UNSEALED COURT DOCUMENT<\/b><\/i><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While Eastern argued outscoring Austal on the higher-weighted non-price factors should have resulted in a win, the court documents state the Coast Guard determined \u201cthe additional benefits that would be achieved \u2026 do not justify the price premium.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rather, any risk incurred from Austal\u2019s plans \u201ccan be mitigated through special contractor emphasis and close Government monitoring.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The court document reveals the Coast Guard was drawn to the resilience of Austal\u2019s facilities. Specifically, it found the indoor steel assembly facility would reduce weather-related delays, particularly during welding and painting work, reduce the likelihood of corrosion and weather-related damage to the ship hulls and increase the quality of work.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Coast Guard acknowledged Austal\u2019s steel manufacturing line is new \u2014 the company previously built only aluminum ships at the Alabama yard \u2014 which creates some risk. It also noted only one OPC could be built in the indoor facility at a time, meaning the heel-to-toe production cadence could lend itself to \u201cnotable disruptions\u201d to schedule.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among Eastern\u2019s claims is that <a href=\"https:\/\/www.defensenews.com\/naval\/2021\/10\/06\/austal-usa-wins-first-steel-shipbuilding-program-with-t-ats-towing-ship-contract\/\">Austal\u2019s work on the U.S. Navy\u2019s towing, salvage, and rescue ships<\/a> and Large Unmanned Surface Vessel program using the same indoor facility \u201ccompounds Austal\u2019s already severe schedule risk for constructing the OPC.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Coast Guard wrote it was comfortable managing the risk through its government oversight, and the court found it did not have the authority to second-guess that determination.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Austal USA could not be reached for comment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Eastern Shipbuilding Group CEO Joey D\u2019Isernia said \u201cwe are disappointed in the court\u2019s decision.\u201d Still, the company is interested in future opportunities to rejoin the program.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Coast Guard plans to eventually award a Phase 3 contract for 10 additional OPCs, for a total of 25 ships. Coast Guard acquisition chief Rear Adm. Chad Jacoby said at a recent conference there\u2019s no current plan to have both yards build concurrently into the future but that he\u2019d be open to it if lawmakers increased annual OPC spending, since it\u2019s \u201curgent\u201d to get OPCs into the fleet to replace \u201cthe medium endurance cutters, which are struggling to maintain operational capability right now.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In a statement to Defense News, D\u2019Isernia said Eastern is \u201cvery interested in any path that would enable our workforce to continue building the OPCs.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A court upheld the Coast Guard&#8217;s decision to award Austal the Offshore Patrol Cutter contract, despite an appeal by incumbent builder Eastern Shipbuilding.<\/p>\n","protected":false},"author":7,"featured_media":118190,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":16,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[160,29,16,36,103],"tags":[],"coauthors":[3354],"class_list":["post-66049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-digital-show-dailies","category-naval","category-newsletters","category-surface-navy-association"],"acf":{"subheadline":"","legacy_arc_id":"YOTAJYXYEVGGPC2IMMZIGLOB5Q","arc_canonical_url":"\/naval\/2023\/12\/18\/new-court-doc-sheds-light-on-austals-2022-offshore-patrol-cutter-win\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>New court doc sheds light on Austal\u2019s 2022 Offshore Patrol Cutter win - Defense News<\/title>\n<meta name=\"description\" content=\"A court upheld the Coast Guard&#039;s decision to award Austal the Offshore Patrol Cutter contract, despite an appeal by incumbent builder Eastern Shipbuilding.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New court doc sheds light on Austal\u2019s 2022 Offshore Patrol Cutter win\" \/>\n<meta property=\"og:description\" content=\"A court upheld the Coast Guard&#039;s decision to award Austal the Offshore Patrol Cutter contract, despite an appeal by 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