The modification comes six years after VT Halter Marine won the original $745.9 million contract. Bollinger acquired Halter Marine in 2022 inheriting construction of up to three vessels for a total original cost of $1.9 billion.
The program has faced repeated delays and cost overruns since its inception, with the Congressional Budget Office (CBO) estimating the lead vessel alone will now cost $1.9 billion.
The second and third vessel, yet to be funded, are expected to cost around $1.6 billion each according to the CBO. These figures are substantially higher than even the most recent Coast Guard estimates of $3.2 billion for the three vessels.
“Cost overruns like this are further indication that the United States is struggling to overcome a shipbuilding crisis, including this first heavy icebreaker in nearly 50 years,” says Troy Bouffard, Director of the Center for Arctic Security and Resilience at the University of Alaska Fairbanks.
Construction of the lead vessel reportedly began just days before the end of 2024 to meet the Coast Guard’s own deadline repeatedly announced during rounds of Congressional hearings. However, a Bollinger Shipyards press release announcing the awarding of the contract modification indicates that the construction has not yet been greenlit.
“We now look forward to receiving the green light to begin full production,” says Ben Bordelon, President and CEO of Bollinger Shipyards.
The CBO as well as the Government Accountability Office (GAO) repeatedly warned against beginning construction before achieving 100 percent design completion, while Coast Guard leadership indicated they may start production at 95 percent.
The Coast Guard did not immediately respond to inquiries if construction had been greenlit in December 2024 as previously indicated.
The geopolitical importance of the Arctic region has recently been elevated with both Russia and China investing in new icebreakers and ice-capable vessels. Last fall the two countries conducted their first joint Arctic patrol off the coast of Alaska.
President Trump announced that his administration would acquire up to 40 heavy icebreakers, a tall order given the fact that the U.S. has not built such a vessel in nearly 50 years.
“As the Arctic grows as an arena of great power competition, the United States will require far more icebreaking capability from the U.S. Coast Guard to defend our interests in the region,” said U.S. Sen. Roger Wicker (R-MS), Chairman of the Senate Armed Services Committee.
The construction of the PSC in Mississippi has been a driver for an increase in workforce at Bollinger. The company said that since 2022 the number of employees has increased by 61 percent with the largest increase coming in production roles. The size of the workforce is expected to continue to grow as the PSC program reaches full capacity.
