Bollinger Shipyards has received a $951.6 million Fixed-Price-Incentive-Firm Target (FPIF) contract modification from the U.S. Coast Guard to continue the design and construction of the so-called Polar Security Cutter (PSC) – the first new heavy icebreaker to be built in 50 years in the United States.
This milestone underscores Bollinger’s integral role in strengthening America’s maritime presence and operational capabilities in the Arctic, the Mississippi-based shipyard stated.
“Securing this contract modification has truly been a herculean effort and underscores the incredible trust the U.S. Government has placed in Bollinger to build and deliver the first heavy polar icebreaker in half a century,” said Ben Bordelon, President and CEO of Bollinger Shipyards. “We now look forward to receiving the green light to begin full production.”
Mr. Bordelon added: “I am also grateful for the leadership of President Trump and his Administration in recognizing the urgent need for American-made icebreakers. Because of his foresight and commitment to rebuilding America’s shipbuilding capabilities, this historic project is now moving forward.”
The modification came six years after VT Halter Marine won the initial $745.9 million contract. Bollinger purchased Halter Marine in 2022- thereby inheriting construction of up to three vessels for a total original cost of $1.9 billion.
The program has encountered delays and cost overruns since its inception. The Congressional Budget Office (CBO) estimates the lead vessel alone will now cost $1.9 billion. The second and third vessel, still to be funded, are expected to cost around $1.6 billion each, according to the CBO. This is markedly higher than the latest 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,” Troy Bouffard, Director of the Center for Arctic Security and Resilience at the University of Alaska Fairbanks, told the gCaptain news platform.
“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,” remarked U.S. Sen. Roger Wicker (R-MS), Chairman of the Senate Armed Services Committee. “The Mississippi Gulf Coast will not only benefit from even more national security-focused quality jobs and economic development, but it will also continue to be a national player and powerhouse in mission-critical innovation and military capability.”
(Art rendering of Polar Security Cutter from Bollinger Shipyards