Polar Icebreaker Cost Assessment
An ad hoc committee
“(a) shall:
(1)
describe current and emerging requirements for the Coast Guard's polar
icebreaking capabilities, taking into account the rapidly changing ice cover in
the Arctic environment, national security considerations, and expanding
commercial activities in the Arctic and Antarctic, including marine
transportation, energy development, fishing, and tourism;
(2) identify
potential design, procurement, leasing, service contracts, crewing, and
technology options that could minimize life-cycle costs and optimize efficiency
and reliability of Coast Guard polar icebreaker operations in the Arctic and
Antarctic; and
(3) examine:
(A) Coast Guard estimates of the
procurement and operating costs of a Polar icebreaker capable of carrying out
Coast Guard maritime safety, national security, and stewardship responsibilities
including:
(i) economies of scale that might be achieved for
construction of multiple vessels; and
(ii) costs of renovating
existing polar class icebreakers to operate for a period of no less than 10
years.
(B) the incremental cost to augment the design of such an
icebreaker for multiuse capabilities for scientific missions;
(C) the
potential to offset such incremental cost through cost-sharing agreements with
other Federal departments and agencies; and
(D) United States polar
icebreaking capability in comparison with that of other Arctic nations, and with
nations that conduct research and other activities in the Arctic.
(b)
Included Costs: For purposes of subsection (a), the assessment shall include
costs incurred by the Federal Government for:
(1) the lease or operation and
maintenance of the vessel or vessels concerned;
(2) disposal of such vessels
at the end of the useful life of the vessels;
(3) retirement and other
benefits for Federal employees who operate such vessels; and
(4) interest
payments assumed to be incurred for Federal capital expenditures.
(c)
Assumptions: For purposes of comparing the costs of such alternatives, the
Academy shall assume that:
(1) each vessel under consideration is
(A)
capable of breaking out McMurdo Station and conducting Coast Guard missions in
the Antarctic, and in the United States territory in the Arctic (as that term is
defined in section 112 of the Arctic Research and Policy Act of 1984 (15 U.S.C.
4111)); and
(B) operated for a period of 30 years;
(2) the acquisition
of services and the operation of each vessel begins on the same date; and
(3)
the periods for conducting Coast Guard missions in the Arctic are of equal
lengths.”
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Report Materials
Lease vs Buy spreadsheet