Vallejo, California-based Mare Island Dry Dock, a ship repair and refurbishment facility, has announced that it will cease operations and close permanently after the loss of a critical U.S. Coast Guard contract that had an immediate and material impact on the company’s financial stability. "The company determined that continuing operations was no longer viable.”
The closure will impact 80 full-time employees and an unknown number of subcontractors.
According to a company statement, "After 12 incredible years, the difficult decision was made to close the doors at Mare Island Dry Dock due to unfortunate circumstances beyond our control."
"This company was built on hard work, long days, problem-solving, and a deep commitment to getting the job done right. Along the way, we were fortunate to work with an amazing group of employees, customers, vendors, and friends who believed in us and supported what we were building. You became more than business contacts — you became part of our story."
"The outpouring of support from the community on social media has been truly overwhelming and deeply appreciated. Your kind words, messages, and shared memories have meant more to us than we can express."
"We are truly grateful for the relationships, memories, and trust you shared with us over the years. Thank you for being part of our journey and allowing us to be part of yours."
According to a Coast Guard Statement, "On December 11, 2025, the Coast Guard awarded a contract to provide dry dock repairs for Coast Guard Cutter HEALY, a medium icebreaker. These repairs are essential to ensuring the vessel can safely and effectively support operations in the U.S. Arctic Region and advance national security objectives. Following a competitive procurement process conducted in accordance with federal acquisitions regulations, Vigor Marine Group was determined to provide the best value to the government based on the Coast Guard's stated technical and performance requirements. Federal law prohibits the disclosure of contractor bid and proposal information."
It is likely that the financial instability of Mare Island Dry Dock played a significant role in the decision.
Change is constant, and it's coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life, nor promises of a bright future. We see good people being laid off through no fault of their own. Just because something terrible hasn't happened yet doesn't mean it won't. It can happen to anyone, at any time, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. While many employees can read the writing on the wall, why do most assume it’s targeted at someone else? Are you now wondering, Am I Next?