Bollinger suing Northrop over cutter contract - Navy News | News from Afghanistan & Iraq - Navy Times

Bollinger suing Northrop over cutter contract

NEW YORK — Bollinger Shipyards Inc. has filed a $12 million lawsuit against the shipbuilding arm of defense giant Northrop Grumman Corp. in a dispute involving the renovation of Coast Guard cutters that were later taken out of service.

Lockport, La.-based Bollinger had a joint venture with Northrop Grumman Ship Systems Inc. to extend the length of 49 Coast Guard cutters from 110 feet to 123 feet. But the first eight boats produced under that contract were taken out of service when the frames cracked on their maiden voyages.

The renovations also were performed by Halter Marine Inc. of Gulfport, Miss. The $200 million contract that covered the work was canceled by the Coast Guard in July 2005.

The vessels, called Island Class cutters, were originally built between 1984 and 1991 by Bollinger.

The federal court complaint, which asks for arbitration, claims that Bollinger was ordered by Northrop Grumman to stop work on the contract after Bollinger had delivered six boats and had begun work on six others.

To terminate the joint venture, Bollinger said it demanded that Northrop Grumman pay it $12.1 million in damages, but the company refused in October 2007.

In September, the Coast Guard awarded Bollinger a contract worth up to $1.5 billion to design and build up to 34 new patrol boats — a move that resulted in sharp criticism by U.S. Rep. Bennie Thompson, a Mississippi Democrat.

In 2005, the Coast Guard said the cancellation of the renovation contract was not a reflection of the work done by Bollinger.

In the lawsuit, Bollinger said Northrop Grumman “through its sole negligence, delivered late, ill-defined specifications and drawings to Bollinger. Bollinger needed this information in a timely manner to efficiently perform its subcontract.”

Northrop Grumman Ship Systems spokesman Ed Winter said the company does not comment on litigation.