U.S. Coast Guard logo. The Coast Guard has awarded a $3.5 billion contract to Davie Defense for ASC construction work.
The U.S. Coast Guard has awarded Davie Defense a potential $3.5 billion contract to build and deliver five Arctic Security Cutters.
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Coast Guard Awards Davie Defense $3.5B Arctic Security Cutter Contract

5 mins read
  • The U.S. Coast Guard awards Davie Defense a potential $3.5 billion contract for five Arctic Security Cutters 
  • Davie Defense plans to build vessels in Finland and Texas through February 2035
  • The 2026 Homeland Security Summit on Nov. 12 will address DHS priorities in AI, cyber defense and more

The U.S. Coast Guard has awarded Davie Defense a potential $3.5 billion contract to build and deliver five Arctic Security Cutters, or ASCs.

Coast Guard Awards Davie Defense $3.5B Arctic Security Cutter Contract

The Coast Guard operates as part of the Department of Homeland Security during peacetime, supporting a wide range of national security and public safety missions. As DHS advances priorities in border security, AI, cyber defense and operational modernization, hear directly from agency leaders and industry executives at the 2026 Homeland Security Summit about the department’s evolving mission needs and strategic priorities. Sign up now!

DHS said Wednesday the finalized agreement is the first of three previously announced ASC contracts, adding that USCG expects to finalize two additional ASC contracts soon.

What Is the Scope of the Coast Guard Contract?

According to DHS, the first vessel is scheduled for delivery in 2028, while all five cutters are expected to be delivered by February 2035.

Davie Defense said two of the five ASCs will be built at Helsinki Shipyard in Finland, while three vessels will be constructed at Gulf Copper facilities in Galveston and Port Arthur, Texas.

The company said the contract, which was first announced in February, runs through February 2035 and maintains the previously announced delivery schedule for all five vessels.

Davie Defense added that the ASC program supports the expansion of the U.S. Arctic fleet and the delivery of a total of 11 ASCs. The company noted the program supports the transfer of Arctic shipbuilding expertise to the U.S. and workforce development efforts along the Texas Gulf Coast.

Davie Defense said the effort could drive as much as $1 billion in investment to support U.S. shipbuilding capacity. The company also plans to hold a June 1 groundbreaking event in Galveston tied to upgrades at Gulf Copper facilities.

What Is the Arctic Security Cutter Program?

The ASC program is a new class of Arctic icebreakers designed to support Coast Guard missions in polar maritime environments. It intends to provide the Coast Guard with a modern icebreaking fleet to support maritime safety, national security and Arctic access.

DHS said the ASC program supports President Donald Trump’s initiative to expand the country’s Arctic fleet through the delivery of 11 ASC polar icebreaker vessels. It also supports efforts to strengthen the U.S. shipbuilding industrial base.

What Did Coast Guard & Davie Defense Leaders Say About the Contract?

Adm. Kevin E. Lunday, commandant of the Coast Guard, said finalizing the contract represents “decisive action” to support U.S. security interests in the Arctic.

“The Arctic Security Cutters will deliver the essential capability to uphold U.S. sovereignty against adversaries’ aggressive economic and military actions in the Arctic,” Lunday said. “These cutters will ensure the Coast Guard’s ability to control, secure, and defend our northern border and maritime approaches.”

Philip Burns-O’Brien, CEO of Davie Defense, said the agreement marks “a major milestone” for the ASC program.

“We are proud to work alongside the Coast Guard to advance this strategic program and strengthen America’s icebreaking capability,” Burns-O’Brien added.

James Davies, co-founder of the Inocea Group, said the vessels will strengthen Coast Guard operations in the Arctic region.

“The Arctic is increasingly strategic to global security and economic resilience, and these vessels will provide the U.S. Coast Guard with critical capability in a region where reliability and operational readiness are non-negotiable,” Davies said.