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Suggested Citation:"2. Appendix A: Statement of Task." National Academies of Sciences, Engineering, and Medicine. 2017. Acquisition and Operation of Polar Icebreakers: Fulfilling the Nation’s Needs. Washington, DC: The National Academies Press. doi: 10.17226/24834.
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Page 18
Suggested Citation:"2. Appendix A: Statement of Task." National Academies of Sciences, Engineering, and Medicine. 2017. Acquisition and Operation of Polar Icebreakers: Fulfilling the Nation’s Needs. Washington, DC: The National Academies Press. doi: 10.17226/24834.
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Page 18

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9 Appendix A Committee on Polar Icebreaker Cost Assessment: Statement of Task SEC. 604. NATIONAL ACADEMY OF SCIENCES COST ASSESSMENT. (a) Cost Assessment.—The Secretary of the department in which the Coast Guard is operating shall seek to enter into an arrangement with the National Academy of Sciences under which the Academy, by no later than 365 days after the date of the enactment of this Act, shall submit to the Committee on Transportation and Infrastructure and the Committee on Science, Space, and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate an assessment of the costs incurred by the Federal Government to carry out polar icebreaking missions. An ad hoc committee 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;

10 (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. (d) Use of Information.—In formulating cost pursuant to subsection (a), the National Academy of Sciences may utilize information from other Coast Guard reports, assessments, or analyses regarding existing Coast Guard Polar class icebreakers or for the acquisition of a polar icebreaker for the Federal Government.

Next: 3. Appendix B: MISSION NEED, THE POLAR ENVIRONMENT, AND ICEBREAKER CAPABILITY »
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On July 11, 2017, the National Academies of Sciences, Engineering, and Medicine Committee on Polar Icebreaker Cost Assessment released a letter report that advises the U.S. Congress on strategies to minimize life-cycle costs of polar icebreaker acquisition and operations. The Committee recommends the number and type of polar icebreakers to fund and an acquisition strategy that achieves a lower cost.

The Committee developed an independent cost estimate using available concept designs to determine if the U.S. Coast Guard’s existing cost estimates for heavy and medium icebreakers are reasonable. It also compared operating costs of the current fleet to the prospective operating costs of new vessels. The Committee recommends a science-ready design for the new icebreakers and the use of an enhanced maintenance program to ensure continuity of operations for existing icebreakers.

This letter report is mandated by the Coast Guard Authorization Act of 2015, and sponsored by the USCG. View the press release.

View a video summarizing the report findings:

On July 25, 2017, the U.S. House of Representatives Transportation and Infrastructure Committee Subcommittee on Coast Guard and Maritime Transportation held a hearing that examines the U.S. Coast Guard’s infrastructure and acquisition needs, and includes the testimony of Rear Admiral Richard D. West (Navy Ret.) who served as Chair for the Committee on Polar Icebreaker Cost Assessment. Witness statements are available online, and the video of the hearing is below:

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