Eastern Shipbuilding loses $3B Coast Guard contract to Alabama company

PANAMA CITY — In a surprising turn of events, Eastern Shipbuilding was not selected by the federal government to build the next 11 ships in the U.S. Coast Guard’s Offshore Patrol Cutter Program. 

According to a press release from the Coast Guard that was forwarded to The News Herald by Sen. Marco Rubio’s office, the more than $3 billion contract to build ships five through 15 in the program was awarded to Austal USA. The competing shipbuilder is headquartered in Mobile, Alabama, with service centers in San Diego and Singapore. 

Those ships are part of a $10.5 billion project with the Coast Guard to build up to 25 Heritage Class Offshore Patrol Cutters, ships that span 360 feet in length and are designed to navigate deep waters for up to 60 days. 

Eastern Shipbuilding was commissioned to build the first four cutters in the program. The Panama City-based company also was given the rights for the first 11 ships in 2016, but that contract was reduced to four after Hurricane Michael devastated Bay County and other parts of the Panhandle in October 2018.