Introduction

Bollinger Shipyards LLC, a prominent U.S. shipbuilding contractor, recently agreed to a $1,025,000 settlement due to alleged False Claims Act violations. This case underscores the importance of contractual compliance in the maritime industry, particularly in shipbuilding for the U.S. Coast Guard.

False Claims Act Violations and Settlement

Between 2015 and 2020, Bollinger is alleged to have billed the U.S. Coast Guard for work performed by illegal workers on Fast Response Cutter (FRC) contracts. The company reportedly failed to verify employee work eligibility, breaching contract terms. This led to a settlement of $1,025,000 to resolve allegations of these contract violations.

Implications for Maritime Security and Government Oversight

The case highlights critical issues in maritime security and government contracting oversight. Key points include:

• Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the importance of contractors adhering to all requirements to ensure fleet safety and operational readiness.
• Inspector General Joseph V. Cuffari Ph.D. asserted that contractors servicing DHS programs will be held accountable for legal breaches.

Bollinger Shipyards’ Continued Prominence

Despite the settlement, Bollinger maintains a strong presence in U.S. government and commercial shipbuilding:

• Operates 13 facilities across Louisiana and Mississippi, making it the largest vessel repair company in the Gulf of Mexico region.
• Has been awarded contracts for up to 67 FRCs, with 55 already in operational service.
• Portfolio includes the Mine Countermeasures Unmanned Surface Vessel for the U.S. Navy and the Coast Guard’s Polar Security Cutter program.

Conclusion

The Bollinger Shipyards settlement serves as a reminder of the stringent requirements in government contracting within the maritime industry. Ensuring compliance with contract terms is vital for maintaining maritime security and operational integrity.

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