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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 »

Textron, Inc.

TH-67 and OH-58 Program Mischarging

Date: 07/01/2006 (Date of Settlement - approx.)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Defense – Army

Contracting Party: Defense - Army

Court Type: Administrative

Amount: $16,570,018

Disposition: Settlement

Synopsis: According to the October 2006 newsletter of the U.S. Army Legal Services Agency, Procurement Fraud Branch, Contract & Fiscal Law Division: “In July 2006, Bell Helicopter Textron Inc. paid approximately $6.4 million to the Army to resolve a pending cost mischarging issue. In August 2004, Bell Helicopter made a voluntary disclosure of possibly fraudulent conduct to the DoD IG. The general nature of the disclosure was that Bell may have overcharged the Government for subcontractor costs, failed to properly document material costs, and used improper source selection criteria when selecting subcontractors for the OH-58 and TH-67 programs. After coordination with DOJ, DODIG admitted Bell into their Voluntary Disclosure Program. The Voluntary Disclosure is proceeding. Bell has taken corrective action and repaid the Army $6.4 million.” In May 2010, the Department of Justice announced that Bell submitted additional reports detailing similar overcharges arising from intra-company transactions with Bell Helicopter Textron Canada Limited and paid an additional $3.7 million. According to DOJ, the total Bell has paid to resolve civil claims arising from its cost charging practices currently stands at $16.6 million.