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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 »

United Technologies Corporation

Navy SH-3 Sea King Helicopter Defective Pricing

Date: 06/07/1999 (Date of Judgment)

Misconduct Type: Defective Pricing

Enforcement Agency: Defense – Navy

Contracting Party: Defense - Navy

Court Type: Civil

Amount: $304,729

Disposition: Judgment Against Defendant

Synopsis: The government sued United Technologies Corporation’s Sikorsky Aircraft Division alleging violations of the False Claims Act and the Truth in Negotiations Act (TINA) by submitting false cost or pricing data to the U.S. Navy during negotiations and providing a false statement to the effect that Sikorsky had submitted accurate, current and complete cost or pricing data. The lawsuit involved a contract the Navy awarded to Sikorsky in 1984 to extend the service life of the Navy's SH-3 Sea King helicopter, an effort that became known as the Main Gear Box Improvement Program. The court found one TINA violation, for which it awarded the government $196,640 in damages and $108,089 in interest. The court found Sikorsky did not violate the False Claims Act, concluding its actions were “merely negligent, inadvertent or a mistake.”