Bollinger Shipyards Fined $1 Million For Employing Ineligible Workers On USCG Projects

Bollinger Shipyard LLC, a Lockport, Louisiana-based company, has agreed to pay $1,025,000 to resolve allegations that it violated the False Claims Act.

The company was accused of knowingly billing the U.S. Coast Guard for labour provided by workers who were not eligible to work in the United States.

The allegations cover a five-year period from 2015 to 2020. Bollinger, which manufactures ships for the Coast Guard, including the Fast Response Cutter (FRC), was contractually required to ensure that all employees working on the project were eligible to work in the U.S.

Authorities claimed the company failed to meet this requirement and billed the Coast Guard for labour provided by ineligible employees. Despite the settlement, there was no determination of liability, and Bollinger has not commented on the allegations.

The U.S. Department of Justice (DOJ) discussed the importance of contractor compliance. A senior DOJ official said contractors must follow all requirements to ensure the safety and readiness of the fleet.

The Department of Homeland Security (DHS) Inspector General said that this settlement is a warning to contractors working with DHS programs to follow the law.

The Coast Guard Investigative Service (CGIS) reiterated its commitment to protect taxpayer funds and fully investigate any allegations of fraud.

Bollinger has been a trusted partner of the U.S. Coast Guard for over 40 years, delivering 184 vessels during this time. The FRC program, which started in 2008, has been a key project for the shipbuilder.

The first FRC, USCGC Bernard C. Webber, was delivered in 2011. The program is seen as a success, with at least 67 vessels planned.

In May 2024, the Coast Guard exercised an option for the 66th and 67th cutters, and the 58th vessel, USCGC John Witherspoon, was delivered in November 2024.

Two more cutters are under construction with delivery expected in 2025.

The shipyard is also working on a Polar Security Cutter (PSC), a heavy polar icebreaker of the Coast Guard, and a new series of berthing and messing barges for the U.S. Navy.

The company has delivered three barges so far and has received a contract for the seventh unit in the series.

Bollinger Shipyard was founded in 1946 by Donald G. Bollinger. It operates 11 shipyards in Louisiana and Mississippi and is located strategically near the Gulf of Mexico, the Mississippi River, and the Intercoastal Waterway.

It is the largest vessel repair provider in the Gulf of Mexico region.

Reference: U.S. Department of Justice

Source: Maritime Shipping News