The Coast Guard said yesterday that it will temporarily stop its review and suspend its pursuit of a $96.1 million refund for faulty ships built by Lockheed Martin and Northrop Grumman, pending a Justice Department investigation.

The Justice Department and the Department of Homeland Security's office of the inspector general are investigating the Coast Guard's contracts, including those for eight 123-foot patrol boats found to have structural problems. The patrol boats are part of the Coast Guard's 25-year, $24 billion fleet modernization known as Deepwater.

"In light of the ongoing investigation, the Coast Guard has agreed with the Department of Justice and the Inspector General to postpone pursuit of its contractual remedies at this time," Rear Adm. Gary Blore said at Coast Guard headquarters. Blore said the Coast Guard may resume its pursuit of the $96.1 million refund depending on the outcome of the Justice investigation.

The Coast Guard will continue to provide documents and technical support to assist the government's investigation.

The latest move signals a shift by the Coast Guard, which this year had begun the process for a formal negotiation with the Integrated Coast Guard System, the joint venture between Lockheed, of Bethesda, and Northrop Grumman, of Los Angeles, over the faulty boats. Northrop Grumman builds the ships, while Lockheed Martin provides communications equipment and other technology.

After revoking acceptance of the patrol boats last May, the department demanded a refund. The boats were removed from the waters off Florida in late 2006 and decommissioned in April 2007. Some electronics issues were first identified in 2003 by Michael De Kort, a former Lockheed Martin employee, who later chronicled his complaints in a YouTube video.

"We continue in dialogue with the Coast Guard for the purpose of trying to resolve this issue, and as such it would be inappropriate to comment further on the matter," said Megan Mitchell, an ICGS spokeswoman.

The Deepwater program is intended to modernize 91 cutters, 195 aircraft, and computer and communications equipment, and to integrate logistics capabilities.