U.S. Coast Guard Exercises $314 Million Options for Austal’s Offshore Patrol Cutters

The United States Coast Guard has exercised contract options worth US$314 million with Austal USA for the Offshore Patrol Cutter (OPC) program, the company announced today.

The options authorize Austal to procure long lead time materials for three additional OPCs—the company’s 4th, 5th, and 6th cutters—along with logistic supply items for two vessels.

“These early awards reflect the strong partnership that has quickly developed between the Coast Guard and Austal USA teams, and provide an important sign of intent for OPCs 3-6,” said Austal CEO Paddy Gregg.

Work on Austal USA’s first OPC, Pickering (WMSMS 919), is progressing with keel laying scheduled for December, while construction on the second vessel, Icarus (WMSMS 920), began in early August.

The original contract, awarded to Austal USA in June 2022, covers detail design and construction of up to 11 OPCs with a potential value of $3.3 billion. Thus far, two vessels have been awarded to Austal USA, along with long lead time materials for a third.

The 110-meter cutters will be capable of operating beyond 12 nautical miles from shore with a range of 10,200 nautical miles at 14 knots and a 60-day endurance period. The vessels will conduct various missions including law enforcement, drug and migrant interdiction, and search and rescue operations.

This development follows significant restructuring in the OPC program. In July 2025, Department of Homeland Security Secretary Kristi Noem announced the partial termination of a contract with Eastern Shipbuilding Group (ESG) for OPCs 3 and 4, citing delays and cost concerns. ESG’s delivery of OPC 1 was originally scheduled for June 2023 but has been delayed until at least late 2026.

“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,” a Senior Homeland Security official stated at the time.

Eastern Shipbuilding was awarded the contract to design and construct the first four OPCs in 2016, originally planned as part of a larger nine-vessel procurement. However, the contract was eventually modified after Hurricane Michael severely damaged ESG’s Panama City facilities in 2018, dividing the program into two stages.

The Coast Guard plans to acquire a total of 25 OPCs as part of its fleet modernization strategy. According to a 2023 U.S. Government Accountability report, the acquisition cost estimate for the program has risen dramatically due to various factors, including contract restructuring following disruptions caused by Hurricane Michael and higher infrastructure costs.

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