Coast Guard Shipyard Construction Exceptions

Full Title:
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.

Summary#

This bill would change section 1151 of title 14, United States Code, which limits construction of Coast Guard vessels in foreign shipyards. The bill keeps the basic prohibition but adds specific exceptions. Under the bill, the President may allow construction in a foreign shipyard for national security reasons if the President notifies Congress, waits 30 days, and certifies with the Commandant that: the shipyard is either a NATO member or party to an active U.S. defense treaty in the Indo-Pacific; using that foreign shipyard would cost less than using a U.S. shipyard; the foreign shipyard can deliver a vessel more than 18 months sooner than a U.S. shipyard; and the foreign shipyard has shown in the past five years it can design, build, and deliver vessels that meet the missions in 8 U.S.C. 468(a) at the required cost and timeline. The bill also allows the Secretary to acquire a completed vessel from a foreign shipyard if the shipyard is in a NATO country or a country that is party to an active U.S. defense treaty in the Indo-Pacific and if that country’s government provides a warranty agreement for the vessel.

What it means for you#

If approved, the bill could allow certain Coast Guard vessels or major components to be built or bought from allied foreign shipyards in specific cases. Any such exception would require a presidential determination and certification, a 30-day notice period to Congress, and, for purchases of completed vessels, a warranty agreement from the foreign government. The allowed foreign shipyards must be NATO members or covered by an active U.S. defense treaty in the Indo-Pacific.

Expenses#

No publicly available information on the bill’s overall costs or budget effects. The bill does require that, for an exception, the President certify that using the foreign shipyard would cost the United States less than using a domestic shipyard.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.