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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 »

Lockheed Martin

Mischarged Costs on C27J Aircraft Program

Date: 12/17/2010 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – General

Contracting Party: Defense - General

Court Type: Civil

Amount: $10,280,000

Disposition: Settlement

Synopsis: Lockheed Martin reached a $10.3 million False Claims Act settlement with the federal government over claims that its Marietta, Georgia aircraft manufacturing division inflated the overhead rates on contracts with the U.S. Air Force and U.S. Navy from 1996 to 2000. The settlement resolved the government’s allegations that Lockheed Martin mischarged costs in a deal with Alenia Aerospazio, an Italian aerospace company, to develop the C27J tactical transport aircraft. The government claimed Lockheed charged business development, proposal and other commercial costs to government accounts.