A bill to amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards.
This bill would change the Coast Guard construction rules found in 14 U.S.C. §1151 to allow for exceptions to the current prohibition on building Coast Guard vessels in foreign shipyards, but only under a defined set of conditions. The President could authorize such exceptions in cases that serve the national security interest, but only after Congress is notified and a certification is provided by the President and the Commandant. The certification would require that the foreign yard be allied (NATO member or party to a U.S. defense treaty in the Indo-Pacific), that using the foreign yard is cost-effective for the U.S. government, and that the foreign yard can design, build, and deliver the vessel at a timeline advantage (or no more than a small delay) compared to a domestic yard. The bill also authorizes acquiring a completed vessel from an allied foreign yard if the foreign country provides a warranty for the vessel. In addition, the bill creates a mechanism for contracting with foreign shipyards while preserving U.S. oversight and affordability, and it specifies conditions for obtaining such vessels with regard to timelines, costs, and proven performance.
Key Points
- 1National prohibition with defined exceptions: The bill maintains a general prohibition on constructing Coast Guard vessels in foreign shipyards but adds a structured process for approving exceptions.
- 2National security exception process: The President may authorize an exception if it serves the national security interest, with a required 30-day congressional notification before any contract can be awarded under the exception.
- 3Certification criteria for exceptions: For an exception to be granted, the President and Commandant must certify that:
- 4- The foreign yard is a NATO member or party to an active U.S. defense treaty in the Indo-Pacific region.
- 5- The Foreign-vs-domestic cost comparison favors the foreign yard (cost to the U.S. Government is lower).
- 6- The foreign yard’s design/construct/deliver timeline is at least 18 months faster than the domestic timeline (i.e., domestic would deliver more than 18 months later).
- 7- Over the prior five years, the foreign yard has demonstrated capacity to design, construct, and deliver a vessel capable of performing the required missions, and its cost and delivery timeline meet specified thresholds (cost lower than domestic, and a timeline not more than 18 months slower than domestic).
- 8Acquisition of a completed vessel: The Secretary may acquire a completed vessel from a foreign yard if the foreign yard is NATO or a party to a U.S. defense treaty in the Indo-Pacific, and if the government of the foreign country provides a warranty agreement for the vessel.
- 9Oversight and accountability: The bill requires formal notification to Congress and certification by U.S. officials, emphasizing accountability and justification for using a foreign yard.