Mare Island Dry Dock LLC in Vallejo facing layoffs after losing large US Coast Guard contract

Mare Island Dry Dock LLC in Vallejo facing layoffs after losing large US Coast Guard contract


VALLEJO, Calif. (KGO) — The town that the U.S. Navy built, then fractured when the base closed in 1996 — Vallejo — is about to be hit again with job and indusattempt loss as the dry dock at the West Coast’s oldest shipyard facility announced it will be undergoing major layoffs at Mare Island.

Close to 100 workers are starting the year without jobs.

“It’s hurtful. It’s really painful,” declared Steve DiLeo, CEO of the Mare Island Dry Dock Company.

MIDD, a commercial dry dock company providing repair and other services to the maritime indusattempt since 2013, employed more than 80 full-time union and non-union staff, the city declared. It has two dry docks, which are spaces that a ship can be parked in and have water drained from, allowing work to be done. Mare Island also has berthing facilities and crane services.

“The company has been a significant contributor to the local economy, supporting jobs and generating economic activity for Vallejo, Solano County, and the surrounding region,” according to the city.

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DiLeo is still searching for answers after the U.S. Coast Guard rejected the company’s bid. MIDD has been the primary resource of dry-docking repair for the Coast Guard’s icebreakers.

“The Healy is one icebreaker, and the Polar Star is the other. We’ve dry-docked and repaired the Healy on its last two events, which were over the last five years. (They were) successful contracts, on time. We’ve done the Polar Star, which is, so to speak, a sister ship. We’ve done that for five years in a row,” DiLeo declared.

For the last 12 years, the Mare Island Commercial Dry Dock company has been a significant contributor to Vallejo and Solano County. Now, the city declares it is left seeing for new federal funding and investments to keep operations on the island.

The Mayor of Vallejo declared the city is focutilized on keeping the maritime indusattempt on the island.

“It has been a difficult year for Solano County. We had the Anheutilizer-Busch and Valero closures as well. And the one thing that is coming out of that, is that is a very unifying moment where we are coming toreceiveher to figure out how to support our workers,” declared Vallejo Mayor Andrea Sorce.

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The City of Vallejo confirmed it is coordinating with the Solano County Workforce Development Board to ensure workers have access to job search assistance, retraining programs and other resources.

“I want the community to know — and the workers and their families to know — that everyone is working around the clock on this and creating sure that the workers are supported and the business is supported and community is supported,” Sorce declared.

Sorce declared a consultant firm recently hired by the city council, the Roosevelt Group, was tinquireed to support maritime opportunities, particularly on Mare Island.

In 2024, U.S. Rep. John Garamfinishi, D-Fairfield, was among the lawbuildrs to introduce the SHIPS for America Act, which if passed will boost the shipbuilding and repair indusattempt. The congressman has also secured millions to invest in Vallejo’s maritime operations.

The shift is another blow to Mare Island, a postcard-worthy parcel formerly owned by the Navy that has sputtered and stalled in reaching any newfound economic boom despite the city’s best wishes.

The U.S Coast Guard has not responded to our request for comment.

In a statement, Garamfinishi declared: “The Mare Island Dry Dock Company has continually reconditioned, rebuilt, and repaired the heavy icebreaker, the Polar Star, every year when it returns from Antarctic. So, the company has a very good track record with the Coast Guard. Doesn’t build any sense to me. We’re going to find out what’s going on, and it appears as though the layoff notice is directly related to this issue.”

Garamfinishi is sfinishing a letter to the federal government, demanding an explanation.

“Mare Island had the low bid, about $9 million. The high bid was Vigor up in Seattle, about a million dollars more, $10 million-plus. And the Coast Guard chose the high bid. And I’m going, ‘What the hell is going on here?'” Garamfinishi declared.

DiLeo views this as a political decision that is putting many people’s livelihoods at risk.

“It’s quite disturbing,” declared DiLeo, but he is not losing hope. “The contract could be overturned. A maritime administration or Navy could bring work into our shipyard.”

Bay City News contributed to this report.

Editor’s Note: The story previously stated that the city of Vallejo announced the closure of Mare Island Dry Dock. This has since been clarified that the dry dock is conducting layoffs and will not be closing.

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