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 related to billing the U.S. Coast Guard for work performed by unauthorized employees.
The settlement addresses claims that between 2015 and 2020, Bollinger knowingly billed the Coast Guard for labor that was prohibited under Fast Response Cutter (FRC) contracts. The company allegedly failed to verify employee work eligibility as required by contract terms, resulting in several 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,” stated Principal Deputy Assistant Attorney General Brian M. Boynton.
The case highlights broader implications for maritime security and government contracting oversight. Inspector General Joseph V. Cuffari Ph.D. of the Department of Homeland Security said that “contractors providing services to DHS programs will be held accountable for breaking the law.”
Despite this settlement, Bollinger maintains a significant presence in U.S. government and commercial shipbuilding. The company operates 13 facilities across Louisiana and Mississippi, positioning itself as the Gulf of Mexico region’s largest vessel repair company. To date, Bollinger has been awarded contracts for up to 67 Fast Response Cutters since the program’s inception, with 55 already commissioned into operational service.
In addition to the FRC program, Bollinger’s portfolio includes several critical government contracts, including the Mine Countermeasures Unmanned Surface Vessel for the U.S. Navy and the Coast Guard’s Polar Security Cutter program – the first heavy icebreaker to be built in the United States in five decades.
The investigation was conducted jointly by DHS OIG and the Coast Guard Investigative Service.
