S. 1577: To amend section 1151 of title 14, United States Code, to modify the restriction on construction of Coast Guard vessels in foreign shipyards.

This bill proposes to modify existing restrictions on the construction of vessels for the U.S. Coast Guard in foreign shipyards. Specifically, it amends section 1151 of title 14 of the United States Code, which previously prohibited such construction, allowing for certain exceptions.

Key Provisions

• General Modification: The bill begins by removing the blanket prohibition against constructing certain Coast Guard vessels in foreign shipyards.
• Exceptions Based on National Security: The President would have the authority to permit exceptions to the prohibition if it is deemed necessary for national security. However, this requires:
  • A notification to Congress, with a 30-day waiting period before any contracts can be made.
  • Certification that the foreign shipyard is either:
    • A member of NATO or
    • Part of a U.S. defense treaty in the Indo-Pacific.
  • Proof that the cost of using the foreign shipyard is less than using a domestic shipyard.
  • Evidence that the timeline for construction from the foreign shipyard is shorter than that from a domestic shipyard.
  • Verification that the foreign shipyard has successfully completed relevant vessel construction in the previous five years at a cost and timeline competitive with domestic options.
• Acquisition of Completed Vessels: The bill also allows the Secretary of the Coast Guard to acquire completed vessels from foreign shipyards if:
  • The shipyard is in a country that is a NATO member or has an active U.S. defense treaty in the Indo-Pacific.
  • The foreign government enters into a warranty agreement regarding the vessel with the U.S. Government.

Overall, this legislation aims to provide more flexibility for the Coast Guard in terms of vessel construction while maintaining certain safeguards related to national security.

Relevant Companies

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