Mobile, Ala. – (GSN) – The U.S. Coast Guard and Florida-based Eastern Shipbuilding Group (ESG) mutually agreed to terminate their 10-year-old Stage 1 contract for the first four Heritage-class Offshore Patrol Cutters (OPCs), a multi-billion-dollar program heavily disrupted by delivery delays, 2018's Hurricane Michael, partial contract cancellations, and ESG's complete suspension of work due to intense financial strain.

Sam Lagrone, of US Naval Institute reported, parallel to this resolution, Republican Senator Rick Scott of Florida officially lifted his monthslong block on hundreds of Coast Guard promotion confirmations, which he had initiated in April 2026 to demand transparency from the service regarding its handling of the troubled procurement program.

While the Coast Guard aims to transition the completion of the remaining hulls as fast as possible to safeguard national maritime security, the resolution closes a contentious chapter in the $17 billion fleet modernization plan, shifting full future production focus toward Alabama-based Austal USA, which was selected in 2022 to oversee Stage 2 of the 25-ship acquisition project.

Last year, the Department of Homeland Security issued a request for information for towing two partially built cutters from Eastern to potentially be completed at a different shipyard.

Austal USA is undergoing transformative growth on the Mobile waterfront. The company committed to a $750 million dual-expansion project, which includes a submarine module fabrication facility and an assembly building for large steel ships, adding 2,000 local jobs. Many of the fabricators reside in Baldwin County.