It’s been a year since the U.S. Coast Guard (USCG) launched its Force Design 2028 (FD28) initiative to enhance agility, capability, and responsiveness. FD28 is off to a roaring start, considering the USCG already spent over $7 Billion of the $25 Billion investment from the One Big Beautiful Bill Act. With lofty goals and a historic influx of funding to support the largest overhaul of the service since World War II, FD28 offers numerous contracting opportunities for small businesses. This blog provides an overview of USCG contracting and highlights key USCG initiatives that all federal contractors should track closely.
Background on U.S. Coast Guard Acquisition
USCG has the unique position of straddling the line between civilian and defense contracting. In its civilian capacity (i.e., during peacetime), USCG falls under the Department of Homeland Security (DHS). DHS also oversees sub-agencies like the Transportation Security Administration (TSA), Federal Emergency Management Agency (FEMA), and Cybersecurity Infrastructure Security Agency (CISA). It also ranks among the top five civilian agency spenders, with $32.9 Billion spent in 2025. In FY24, over 40% of DHS’s contract spending went to small businesses, with Other Transaction spending increasing by over $3 Million from 2023 to 2024. In its defense capacity (i.e., during wartime), USCG falls under the Department of the Navy, within the Department of War. PilieroMazza has extensive information regarding DOW’s Acquisition Overhaul and Executive Orders regarding defense contracting priorities.
With a $25 Billion investment, a mission to overhaul, and FD28, businesses would be remiss not to explore contracting with the USCG. Now is the time to conduct market research, engage in teaming discussions, and advertise to be ready when opportunities arise.
Force Design 2028
In January 2025, USCG launched the FD28 initiative to enhance agility, capability, and responsiveness. FD28 includes four campaigns: Organization, Contracting and Acquisitions (C&A), People, and Technology. Anyone following DOW’s Acquisition Overhaul will find a lot of key points in FD28 familiar, especially with respect to cutting red tape to contract faster. Both C&A and Technology campaigns are key for government contractors, as they are slated to drive significant procurements, including FAR-based contracts and Other Transactions:
1. Contracting and Acquisitions Campaign
This campaign aims to streamline contracting and acquisitions to address emerging threats while enhancing industry collaboration. The Coast Guard plans to leverage creative commercial solutions, prioritizing speed and flexibility. These methods are not new to the Coast Guard. Pursuant to the Icebreaker Coalition Effort Pact—a trilateral agreement between the United States, Canada, and Finland combining collective knowledge, resources, and expertise to produce Arctic and polar icebreakers—USCG awarded two major contracts in December 2025 for constructing medium polar icebreakers, directly engaging with industry through commercial solutions to add the first polar icebreaker to its fleet in over 25 years, with more vessels on the way. Other key initiatives for the C&A campaign include:
- Streamlining contracting approvals by establishing a Senior Procurement Executive role to expedite key capabilities.
- Outsourcing procurement activity to increase efficiency by leveraging DOW and other agencies’ expertise beyond DHS.
- Establishing single points of accountability to empower Program Executive Officers and individual program managers to make decisions on their programs.
2. Technology Campaign
The Technology Campaign focuses on accelerating technology insertion, empowering the digital workforce, and modernizing IT and cybersecurity. Key initiatives include:
- Nex-Gen Maritime Surveillance: Developing an integrated sensor network leveraging AI and other leading technology.
- Revitalizing U.S. Maritime Industry: Replacing outdated processes and systems for vessel registration and mariner credentials.
- HR Information Technology: Streamlining workforce management with AI-enhanced decision-making.
- Modern Logistics System: Implementing an integrated logistics management system asset maintenance.
- Rapid Response Prototype Team: Establishing a team to deliver cutting-edge technology capabilities swiftly.
Key Takeaways
- Start Early, Win Big. Contractors who track acquisitions before they hit SAM.gov place themselves in a much more strategic position come competition time. You can start now by talking to potential teaming partners and attending USCG industry days.
- Think Beyond FAR-Based Solutions. DHS and DOW both emphasize utilizing Other Transaction Authority and leveraging industry’s commercial solutions.
- USCG Resources. USCG offers a variety of Small Business Resources and DHS’s Acquisition Planning Forecast System provides projections of all anticipated contract actions above $350,000 that small businesses may be able to perform under direct contracts with DHS or perform part of the effort through sub-contracting arrangements with large business prime contractors.
If you have questions about doing business with USCG, the DHS, and its sub-agencies, or any other issues affecting government contractors, please contact Lauren Brier, Josie Farinelli, Krissy Crallé, or another member of PilieroMazza’s Government Contracts Group.
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If you’re seeking practical insights to gain a competitive edge by understanding the government’s compliance requirements, tune into PilieroMazza’s podcasts: GovCon Live!, Clocking in with PilieroMazza, and Ex Rel. Radio.
