Florida-based Eastern Shipbuilding Group (ESG) has finally made the difficult decision to suspend work on the troubled Offshore Patrol Cutters (OPCs) program, a development that comes six months after the Trump administration announced partial termination of the contract due to delays and cost overruns.
Joey D'Isernia, CEO of ESG, announced that due to the significant financial stress caused by the structure and terms of the program, the company has chosen to suspend work on its Heritage Class OPCs under construction, which has resulted in layoffs.
The OPC ships, which are 360 feet long and have a top speed of 22.5 knots, are designed to bridge the capacities of the ocean-going 418-foot national security cutters and the 154-foot rapid response cutters. With a lifespan of 60 days, the Heritage class is needed to replace the 270-foot and 210-foot medium-endurance cutters, many of which are past retirement age.
The decision has a direct impact on the first and second OPC hulls. The first, USCGC Arguswas launched in 2023 and was in trim for delivery in 2026. The Unfinished ArgusThe fate is unclear, but there have long been concerns: Congressman Mike Ezell complained about it earlier this year Argus delivered “four years late and with a large number of non-conforming parts”.
The Trump administration has already ended orders for the third and fourth hulls in the series. The Coast Guard shelved those hulls in June of this year, even though work on both had already begun in early stages, and then the Department of Homeland Security officially canceled the orders in July.
The OPCs program began in 2016 when the Coast Guard selected ESG's detailed design and awarded the contract the following year, with delivery of the first cutter expected in 2021. The USCG plans to acquire 25 OPCs, and the program promised long-term prosperity for ESG. But the shipyard suffered setbacks, starting with a category five hurricane in 2018, and was unable to catch up. The Coast Guard split the original contract, awarding hulls five through eleven to competitor Austal USA, leaving ESG with four hulls remaining.
According to a statement to media outlet WMBB News 13, ESG has now decided to suspend the program entirely.
“ESG has made the difficult decision to suspend work on the OPC program due to the significant financial burden caused by the program's structure and terms. Despite our best efforts, continuation is not sustainable under the current circumstances,” ESG President Joey D'Isernia said in a statement to local media. “Unfortunately, we also had to reduce our workforce – an extremely difficult step because our employees are the strength of this company.”
He continued that the measure will allow the company to remain financially stable and focus on fulfilling other contractual obligations. “We have overcome a major hurricane and a global pandemic and we will overcome this challenge too,” he noted.