Bollinger Shipyard Pays $1M Settling Allegations of “Ineligible” Workers

 

The U.S. Department of Justice has reached a settlement agreement with Bollinger Shipyard of Louisiana related to allegations that the company billed the U.S. Coast Guard for labor provided by workers who were “not eligible to work in the United States.” The allegations related to work done between 2015 and 2020 for the U.S. Coast Guard as part of the contract for the Fast Response Cutter program.

According to the announcement, Bollinger Shipyard has agreed to pay $1,025,000 to resolve the allegations. There was no determination of liability. 

Bollinger manufactures ships for the United States, including the Coast Guard’s Fast Response Cutter (FRC). The program began in 2008 with the award for the prototype vessel which became the Bernard C. Webber which was delivered in 2011 and commissioned the following year. The U.S. Coast Guard considers it a highly successful program with current plans to expand to at least 67 vessels. In May 2024, it excised a construction option with Bollinger for numbers 66 and 67 and in November took delivery on number 58. Two more are currently under construction for delivery in 2025.

“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 announcing the settlement agreement.

The United States alleged that, from 2015 to 2020, Bollinger knowingly billed the Coast Guard for labor prohibited under the FRC contracts. The company was “contractually required to confirm that its employees were eligible to work in the United States,” said DOJ. The allegations were that the Coast Guard was billed for “the labor provided by the ineligible employees” and that Bollinger “received payment for those bills.”

“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 Department of Homeland Security (DHS). “DHS’ Office of Inspector General (DHS OIG) and our law enforcement partners will continue to prioritize protecting our national security from these kinds of schemes.”

Bollinger has not commented on the agreement. It highlights a long relationship with the U.S. Coast Guard. During the November 2024 handover ceremony for number 58, the U.S. Coast Guard Cutter (USCGC) John Witherspoon, Bollinger said it was the 184th vessel built by the company for the U.S. Coast Guard over a 40-year partnership.

Bollinger is also under contract to build the Polar Security Cutter (PSC) heavy polar icebreaker for the United States Coast Guard. Other projects include a new class of berthing barges for the U.S. Navy. It has delivered three of the berthing and messing barges to the Navy and in October 2024 received a contract for the seventh unit of the class.

Donald G. Bollinger founded the company in 1946. Currently, Bollinger operates 11 yards located in Louisiana and Mississippi with direct access to the Gulf of Mexico, the Mississippi River, and the Intracoastal Waterway. It is also the largest vessel repair company in the Gulf of Mexico region.