LOUISIANA
Bollinger Shipyards agreed to pay the federal government $8.5 million to settle a lawsuit alleging that the company did shoddy work resulting in U.S. Coast Guard boats buckling and failing once they were put into service, officials announced Wednesday.
“Those who expect to do business with the government must do so fairly and honestly,” said Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”
These are the allegations against Bollinger:
The False Claims Act suit alleges that Bollinger misrepresented the longitudinal strength of patrol boats it delivered to the Coast Guard that resulted in the boats buckling and failing once they were put into service.
In 2002, the U.S. Coast Guard contracted to lengthen the Coast Guard’s existing fleet of 110-foot patrol boats to 123 feet and to make other modifications.
Bollinger was the subcontractor that performed the 123-foot patrol boat design and conversion work.
An essential element of the conversion was that the modified boats have sufficient longitudinal strength to meet the performance requirements set forth in the contract.
The federal government alleged that Bollinger gave the Coast Guard with engineering calculations that falsely represented the longitudinal strength of the boats and was two times greater than their actual longitudinal strength.
The United States alleged Bollinger ran the calculations three times and only provided the Coast Guard with the highest and most inaccurate, of the three calculations.
The United States further alleged Bollinger also failed to follow the quality control procedures that were mandated by the contract that would have ensured against such engineering miscalculations.
Authorities said the claims resolved by the settlement are allegations only, and there has been no determination of liability.