Bollinger responds to fed lawsuit over cutter repairs

The nation’s largest tier-two shipbuilder, Lockport-based Bollinger Shipyards has been sued by the federal government over repairs made to eight U.S. Coast Guard cutters in 2006.

On July 29, the U.S. Department of Justice filed a claim that accused Bollinger of falsifying reports to allegedly cover up information regarding the structural strength of eight patrol boats that were taken out of service when repairs were said to have failed. The government lawsuit claims that the shipbuilder made false statements to secure a government contract for re-lengthening the vessels in question.

Five years ago, Bollinger was awarded a government contract to renovate 49 Coast Guard cutters by extending their length from 110 feet to 123 feet. The DOJ has now accused the company of filing reports on hull strength that were manipulated to secure the project at the risk of jeopardizing quality and safety.

On Friday, Bollinger legal spokeswoman Debbie Hearns, of the Washington-based law firm Wiley and Rein, called the government action disappointing.

“Since its founding, Bollinger Shipyards has operated on the principle that ‘quality is remembered long after price is forgotten,'” Hearns said. “Three generations of the Bollinger family have earned a spotless record for honest and fair dealing with every customer, including the U.S. Navy and Coast Guard, our largest client.”

Since 1984, Bollinger built every one of the 122 patrol boats purchased by the Coast Guard with no serious complaints until now.

According to DOJ Assistant Attorney General Tony West, the cutter Matagorda suffered hull failure when put into service. It was the first of the patrol boats in question to undergo repair attempts that were deemed unsuccessful and resulted in those vessels being taken out of service.

The DOJ has accused Bollinger of having falsified hull strength calculations with intent to dupe the federal government into awarding the Coast Guard cutter job to this shipbuilder.

“Companies which make false statement to win Coast Guard contracts do a disservice to the men and women securing our borders,” West said. “We will take action against those who undermine the integrity of the public contracting process by providing substandard equipment to our armed services personnel.”

“We are disappointed with the Department of Justice’s decision to file a complaint related to work completed in 2006,” Hearns said.

“Throughout this process, Bollinger has been open and cooperative with the government, and will remain committed to providing the government all the necessary information and assistance to bring this matter to a close,” he added.

Hearns said that Bollinger has already made attempts to resolve the matter outside of litigation. “But we are fully prepared to defend our good name aggressively in a court of law,” she said.

The DOJ suit against Bollinger seeks unspecified damages under the False Claims Act.

The U.S. Coast Guard is the largest client of Bollinger Shipyards of Lockport, which produced the guard’s cutter patrol boat and performed expansion work on 49 of the vessels in 2006. COURTESY PHOTO