The action represents a complete termination of all work in process as well as options for future work over a five-year period, the command said Friday.
The decision to terminate was based on Navy findings of alleged improper work performed, concern over Earl Industries' quality assurance program and the company's ability to control the quality and documentation of work it performs.
Those concerns were triggered by the number and severity of corrective action reports issued under the Norfolk Ship Support Activity contract issued last year for USS San Antonio (LPD 17) repairs, it said.
"The company's performance on this contract was not in keeping with the type of quality work the Navy expects from our industry partners," said NAVSEA Commander Vice Adm. Kevin McCoy. "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."
Work under the contract included options for performance of all scheduled Chief of Naval Operations availabilities as well as all necessary emergent maintenance/continuous maintenance work on ships of that class during the contract's five-year period of performance.
Ship maintenance contractors are accountable to perform first-time quality work in accordance with specifications. They are also accountable for maintaining records, including supporting documentation, adequate ability to demonstrate the extent of work that has been performed and in compliance with applicable procurement regulations and the terms and conditions of maintenance contracts, NAVSEA said.