The US Naval Sea Systems Command (NAVSEA) has scrapped the San Antonio Class multiship, multioption (MSMO) maintenance contract with Earl Industries over quality assurance issues.
The decision to cancel the contract is based on US Navy findings regarding the company's quality assurance programme and its ability to control the quality and documentation of work.
Termination includes an end to all work that is in process as well as options for future work over a five-year period.
US NAVSEA commander vice-admiral Kevin McCoy said the company's performance was not up to the standards and expectations of the US Navy.
"These failures are unacceptable, and we have lost confidence in Earl's ability to continue successfully performing this same type of work on the rest of the LPD-Class ships under the MSMO contract," he added.
The navy has plans to compete contracts on an individual basis among all eligible contractors for emergent maintenance / continuous maintenance work for the San Antonio Class ships.