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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Boeing Company

Defective Work and Overbilling on KC-10

Date: 08/13/2009 (Date of Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – Air Force

Contracting Party: Defense - Air Force

Court Type: Civil

Amount: $25,000,000

Disposition: Settlement

Synopsis: Boeing agreed to pay the United States $25 million to resolve False Claims Act allegations that the company performed defective work on Air Force KC-10 Extender refueling aircraft. A lawsuit filed by former Boeing employees Anthony Rico and Fernando de la Garza alleged that Boeing defectively installed insulation blanket kits in KC-10 aircraft while performing depot maintenance at the Boeing Aerospace Support Center in San Antonio, Texas. It was also alleged that Boeing overcharged the government for installation of the blanket kits. The settlement consists of a $18,400,000 cash payment and $6,600,000 worth of repair work to be done on the defective blankets.