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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

Bid-Rigging on NAVO MSRC Contract

Date: 01/24/2011 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Multiple Agencies

Contracting Party: GSA

Court Type: Civil

Amount: $2,000,000

Disposition: Settlement

Synopsis: David Magee, a former employee at the Naval Oceanographic Major Shared Resource Center (NAVO MSRC) at the Stennis Space Center in Mississippi filed a False Claims Act lawsuit against Science Applications International Corp. (SAIC); Applied Enterprise Solutions (AES); Lockheed Martin; Dale Galloway, Chief Executive Officer of AES; Stephen Adamec, former Director of NAVO MSRC; and Robert Knesel, Deputy Director of NAVO MSRC. In April 2004, the General Services Administration (GSA) awarded a $3.2 billion contract to provide support services to the NAVO MSRC to SAIC, which partnered with subcontractors AES and Lockheed Martin Space Operations. SAIC was paid a total of $115 million under the contract, of which Lockheed Martin was paid $2 million. Magee alleged that Adamec and Knesel conspired with Galloway, AES, SAIC, and Lockheed to ensure that SAIC and its teaming partners were awarded the contract. In January 2011, Lockheed settled the lawsuit for $2 million. See related SAIC pending instance, “Bid-Rigging on NAVO MSRC Contract”.