Bollinger Shipyards LLC, a major U.S. shipbuilding contractor based in Lockport, Louisiana, has agreed to pay $1,025,000 to settle allegations of False Claims Act violations. The claims involve billing the U.S. Coast Guard for work performed by unauthorized employees between 2015 and 2020.
According to the settlement, Bollinger knowingly billed the Coast Guard for labor that was prohibited under its Fast Response Cutter (FRC) contracts. The company allegedly failed to verify the work eligibility of employees as required, leading to ineligible workers contributing to the project.
“It is essential to the safety and operational readiness of our fleet that contractors comply with all contractual requirements,” said Brian M. Boynton, Principal Deputy Assistant Attorney General. The settlement underscores broader concerns over maritime security and government contracting oversight.
Joseph V. Cuffari, Inspector General of the Department of Homeland Security, emphasized that contractors violating laws will be held accountable.
Despite the settlement, Bollinger Shipyards maintains a strong presence in U.S. shipbuilding. The company operates 13 facilities across Louisiana and Mississippi, making it the Gulf of Mexico's largest vessel repair company. To date, Bollinger has been awarded contracts for up to 67 FRCs, with 55 already commissioned.
In addition to the FRC program, Bollinger is involved in several critical U.S. government contracts, including the Mine Countermeasures Unmanned Surface Vessel for the U.S. Navy and the Polar Security Cutter program for the Coast Guard, the first U.S. heavy icebreaker in five decades.
The investigation was conducted jointly by the DHS Office of Inspector General and the Coast Guard Investigative Service.