Bollinger Shipyards has agreed to pay $1,025,000 to resolve allegations that it violated the terms of its Fast Response Cutter (FRC) contract with the U.S. Coast Guard.
The Lockport, La.-based shipbuilder was accused of employing ineligible workers on FRC projects from 2015 to 2020. Although Bollinger denies the allegations, the company has agreed to the settlement to resolve claims under the False Claims Act, the Department of Justice (DOJ) announced on Wednesday.
“Specifically, the United States alleged that Bollinger was contractually required to confirm that its employees were eligible to work in the United States. The United States further alleges that Bollinger failed to comply with this requirement and, as a result, several ineligible employees worked on the contract. Further, the United States alleged that Bollinger billed the Coast Guard for the labor provided by the ineligible employees and received payment for those bills,” the DOJ said.
The investigation was conducted by the U.S. Attorney’s office, the Department of Homeland Security (DHS), the federal Office of Inspector General and the Coast Guard.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly disregard their contractual obligations.”
“Today’s settlement sends a clear message that contractors providing services to DHS programs will be held accountable for breaking the law,” said Inspector General Joseph V. Cuffari Ph.D. of the DHS.
Bollinger, which constructs and repairs vessles for commercial and government customers across 13 facilities in Louisiana and Mississippi, has built 184 vessels for the Coast Guard, including 58 Sentinel-class FRCs. Current orders bring the FRC program to 67 vessles
Beyond the FRC program, Bollinger Shipyards holds several key Navy and Coast Guard contracts, including the Coast Guard’s Polar Security Cutter program.
