Ship repair is expensive business and in the current budget environment it is essential that the Coast Guard maximize the effectiveness of every maintenance dollar. The dry docking of large cutters is typically done at commercial shipyards, but in certain situations Navy shipyard facilities are used. In these cases, the Navy is required by regulation to charge a significantly higher labor rate to the Coast Guard for all dry dock-related activities (e.g., operation of the dock, temporary services, and security) than the rate charged for Department of Defense (DOD) vessels receiving the same service. The result is an exorbitant cost increase that strains the Coast Guard's already thinly stretched maintenance funding. The policies governing the Coast Guard's use of Navy shipyard facilities should be changed, eliminating the requirement for this extra charge.
Now Hear This: The Coast Guard Should Get a Break at Navy Shipyards
By Commander Nate Moore, U.S. Coast Guard