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BAE shipyard sues Navy over extra work on USS Bataan

The dock landing ship USS Oak Hill (LSD 51) transits the Strait of Hormuz on April 3, 2020. The Bataan Amphibious Ready Group is deployed to the U.S. 5th Fleet area of operations in support of naval operations to ensure maritime stability and security in the Central Region, connecting the Mediterranean and Pacific through the Western Indian Ocean and the three strategic choke points. (U.S. Navy photo by Mass Communication Specialist 3rd Class Andrew Waters/Released)
October 04, 2020

BAE Systems’ Norfolk shipyard is suing the Navy’s Mid-Atlantic Regional Maintenance Center, claiming the yard is owed nearly $1.1 million for work it did on USS Bataan.

The lawsuit contends that the Navy is refusing to pay for extra work that BAE and its subcontractors had to perform because the Navy didn’t provide necessary supplies or complete needed work while Bataan was in the BAE shipyard.

BAE won a $51.6 million, fixed-price contract to repair and modernize Bataan in September 2017. It was originally supposed to complete the work in July 2018, but that was extended to November 2018.

When the ship was not delivered by then, the Navy declared BAE in default of the contract. BAE continued to work on the ship until March 2019.

The lawsuit alleges that the Navy’s challenges securing funds for additional work delayed completion. In addition, the lawsuit says the Navy’s continued dumping of liquids into the bilge spaces prevented BAE from completing cleaning and pumping work.

It also alleges that the Navy also expanded the work required, as when it directed the yard to add multiple pendant and wire installations on the Flight Deck Safety Nets.

BAE said most of its claims for payment for the additional work were denied by the Navy’s Contracting Officer in a formal final decision, prompting the shipyard to sue for the funds it claims it is owed.

The Navy maintenance center has not yet filed a formal response to the BAE complaint. A spokesman was not immediately available for comment.


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