BLUF: The U.S. Coast Guard has obligated $2,075,724,899 to date on its Fast Response Cutter Phase II shipbuilding contract with Bollinger Shipyards Lockport, L.L.C., after a $13.7 million economic price adjustment posted August 5, 2026.

The contract, numbered HSCG2316CAFR625, was originally signed May 4, 2016, following full-and-open competition under solicitation HSCG23-15-R-FRCPII. Cumulative obligations now stand at $2,075,724,899.08 against a base-and-all-options ceiling of $2,143,837,027.33, according to award data retrieved directly from USAspending.gov.

Why it matters: The Fast Response Cutter program is the Coast Guard's primary near-shore patrol vessel recapitalization effort, replacing the aging Island-class fleet. Phase II, awarded to Bollinger, is structured to complete the program's full complement, and the contract's economic-price-adjustment clause means obligations continue to climb well after initial award as material and labor costs are periodically repriced — a structure other shipbuilders bidding similar firm-fixed-price, multi-year vessel contracts should note when pricing their own EPA clauses.

By the numbers:

• Cumulative obligations: $2,075,724,899.08
• Base-and-all-options ceiling: $2,143,837,027.33
• Latest funding action: $13,717,761 (economic price adjustment, August 5, 2026)
• NAICS: 336611 (Ship Building and Repairing)
• Product/service code: 1905 (Combat Ships and Landing Vessels)
• Competition: Full and open competition; no set-aside
• Contracting office: U.S. Coast Guard HQ Contract Operations (CG-912)

The most recent transaction, a bilateral modification dated August 5, 2026, obligated funds for the contract's second-quarter calendar-year-2026 economic price adjustment under clause H.9 of the underlying contract. It follows a similar $35.9 million EPA obligation posted February 25, 2026, and a $12.6 million EPA obligation posted December 9, 2025 — a recurring cadence of price-adjustment fundings layered on top of the base shipbuilding work.

The underlying award description, per USAspending, states the Coast Guard has a requirement to procure up to 26 Fast Response Cutters under this phase, with Phase II intended to complete the fleet at a total of 58 cutters.

Source: USAspending.gov