Updated July 31, 2023
Coast Guard Waterways Commerce Cutter (WCC) Program:
Background and Issues for Congress
Introduction
As of 2019, the 13 WLICs were based at cities along the
The Coast Guard’s Waterways Commerce Cutter (WCC)
U.S. East and Gulf coasts in Alabama, Florida (three
program envisages procuring 30 replacements for the Coast
cutters), Louisiana (two cutters), Maryland, North Carolina,
Guard’s 35 aging river buoy tenders (WLRs), inland
South Carolina, Texas (three cutters), and Virginia. As of
construction tenders (WLICs), and inland buoy tenders
2019, the four WLIs were based at locations in Alaska,
(WLIs). The Coast Guard wants to have the first new WCC
Michigan, Oregon, and North Carolina.
be in service by 2025. On October 5, 2022, the Coast Guard
awarded a contract to Birdon America, Inc. of Denver, CO,
Rationale for Building New WCCs
to build up to 16 WLRs and 11 WLICs. The Coast Guard’s
The Coast Guard states in its FY2024 budget submission
proposed FY2024 budget requests $98.0 million in
that it wants to replace the 35 existing waterways cutters
procurement funding for the WCC program.
with new WCCs because “[i]n addition to age concerns and
the associated equipment obsolescence issues, the legacy
Terminology
fleet presents other sustainment challenges, including
Cutters are Coast Guard vessels that are more than 65 feet
hazardous materials stemming from the use of asbestos and
long and have accommodations for a crew. (Those less than
lead paint during construction of these assets. Outdated
65 feet long are called boats.) Waterways refers here to the
technology and vessel designs have also led to crew safety
intra-coastal waterways along the U.S. East and Gulf
concerns, maintenance cost increases, and non-compliance
coasts, and to U.S. inland waterways such as the
with environmental regulations. Finally, legacy vessel
Mississippi River. Tenders are vessels whose primary
configuration does not allow the assignment of mixed
mission is to maintain or repair something. Coast Guard
gender crews in accordance with the Coast Guard’s
tender designations begin with WL, meaning Coast Guard
workforce goals.”
vessel (W) and tender (L). (The W in the acronym WCC,
however, stands for waterways.)
WCC Program
WCC Missions
Program Initiation and Name
WCCs perform three primary missions under the Coast
The WCC program was initiated in the Coast Guard’s
Guard’s statutory role of providing aids to navigation
FY2018 budget submission. It was earlier called the Inland
(ATON): river buoy tending; inland construction tending
Waterways and Western Rivers Tender (or Cutter) program.
(which involves driving and removing piles and erecting
and repairing range towers and major lights); and inland
Acquisition Strategy
buoy tending. WCCs are used for maintaining more than
The Coast Guard wants to replace the 35 existing waterway
28,200 marine aids to navigation on 12,000 miles of inland
commerce cutters with 30 new WCCs, including 16 WLRs,
waterways on which 630 million tons of cargo move each
11 WLICs, and 3 WLIs. The Coast Guard states that the
year. Additional WCC missions include search and rescue
WCC program
(SAR), marine safety, marine environmental protection, and
ports, waterways, and coastal security.
determined that three WCC variants will best meet
mission needs. All three variants will be monohull
Existing Waterways Cutters
ships, meaning self-propelled cutters instead of tug
The Coast Guard’s 35 existing WCCs are built to nine
and barge configurations. The River Buoy Tender
different designs, and include 18 WLRs, 13 WLICs, and 4
[WLR] and Inland Construction Tender [WLIC]
WLIs. As of 2022, the 35 vessels were an average of 57
variants will be acquired on one contract; these
years old.
variants will maximize commonality with notable
exceptions for hull length, working deck layout, and
Geographic Distribution
deck equipment, including the crane.
As of 2019, the 18 WLRs were based at cities along the
The Inland Buoy Tender will be acquired separately
Mississippi and other inland rivers in Alabama, Arkansas,
from the other two variants. In June 2021, the WCC
Illinois, Iowa, Kentucky (two cutters), Mississippi (three
cutters), Missouri, Nebraska, Oklahoma, Pennsylvania, and
Program began partnering with the U.S. Army
Tennessee (four cutters). Although these locations are in the
Corps of Engineers Marine Design Center, which
central and eastern United States, the rivers in question are
has experience with similar acquisitions, to develop
referred to by the Coast Guard as the western rivers.
a Government-led design for the Inland Buoy
Tender variant. The Inland Buoy Tender will be
contractor-built.
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Coast Guard Waterways Commerce Cutter (WCC) Program: Background and Issues for Congress
(U.S. Coast Guard, “Waterways Commerce
price contract with economic price adjustments for
Cutter,” accessed March 23, 2023.)
the detail design and construction of its river buoy
and inland construction tenders [WLRs and
Figure 1 and Figure 2 show renderings of WCCs. The
WLICs]. The initial award is worth $28.49 million.
winner of the WLR/WLIC contract (see below) will be able
to compete for the WLI contract.
The contract includes options for the construction
of a total of 16 river buoy tenders [WLRs] and 11
Figure 1. Notional Rendering of WLIC and WLR
inland construction tenders [WLICs]. If all contract
line items are exercised, the total contract value is
estimated at $1.19 billion.
A total contract value of $1.19 billion for 27 WLRs and
WLICs equates to an average cost of about $44.1 million
each.
April 2023 GAO Report
The April 2023 GAO report states
The contract award for the detailed design and
construction contract for segment 1 [for the

procurement of the WLRs and WLICs] and the
Source: Notional vendor rendering of WLIC (left) and WLR (right),
shown at U.S. Coast Guard, “Waterways Commerce Cutter,”
acquisition decision event (ADE) 2B milestone
accessed March 23, 2023.
have been delayed following a pre-award
challenge.…
Figure 2. Coast Guard Notional Designs for WLR,
The program plans to achieve initial operational
WLIC, and WLI
capability (IOC) before adjudicating the full results
of initial operational testing. This raises the
possibility of rework if testing identifies problems,
such as design flaws, on cutters that have already
been produced. The Coast Guard plans to mitigate
this risk by using the preliminary results from initial
testing to inform its initial operational capability
decision. (GAO Report 23-106701, p. 52; see page
53 for additional discussion.)
FY2024 Funding
The Coast Guard’s proposed FY2024 budget requests $98.0
million in procurement funding for the WCC program, to be
used for commencing production of WLIC #1 and WLR #1;
procuring long leadtime materials (LLTM) for WLIC #2
and WLR #2; and other program activities. The House
Appropriations Committee, in its report (H.Rept. 118-123

of June 27, 2023) on the FY2024 DHS Appropriations Act
Source: Coast Guard il ustration showing indicative (i.e., notional)
(H.R. 4367), recommends approving the funding request.
designs for the WLI (top), WLIC (middle), and WLR (bottom),
The Senate Appropriations Committee, in its report (S.Rept.
shown at U.S. Coast Guard, “Waterways Commerce Cutter,”
118-85 of July 27, 2023) on the FY2024 DHS
accessed March 23, 2023.
Appropriations Act (S. 2625), recommends denying the
funding request.
Procurement Cost
An April 2023 Government Accountability Office (GAO)
Section 244 of H.R. 4367 as reported would prohibit
report on major Department of Homeland Security (DHS)
FY2024 WCC procurement funding and prior-year
acquisition programs states that as of June 2022, the WCC
procurement funding that remains available for obligation
program’s total estimated procurement cost was $922
in FY2024 within the WCC program from being “used to
million, or an average of about $30.7 million per cutter.
enter into or carry out a procurement contract with any
(GAO Report 23-106701, p. 52.)
entity deemed not eligible for an award from a size
standpoint by the Small Business Administration.” H.Rept.
Contract Award
118-123 states: “The Committee is disappointed in the lack
On October 5, 2022, following a Request for Proposals
of professionalism demonstrated by acquisition staff
(RFP) released on April 30, 2021, the Coast Guard
responsible for this project and expects the Coast Guard to
announced that it had
take substantive action to improve the quality of its
acquisition work and related communications” (pp. 49-50).
today awarded Birdon America, Inc. of Denver, an
indefinite-delivery, indefinite-quantity firm fixed
Ronald O'Rourke, Specialist in Naval Affairs
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Coast Guard Waterways Commerce Cutter (WCC) Program: Background and Issues for Congress

IF11672


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