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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

Heiser v. Lockheed Martin (Inflated Costs in Contract for Flight Training Programs)

Date: 01/23/2003 (Date of Settlement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – Air Force

Contracting Party: Defense - Air Force

Court Type: Civil

Amount: $1,407,834

Disposition: Settlement

Synopsis: Lockheed settled allegations that its Loral Corp. subsidiary inflated costs in a contract with the Air Force, in violation of the False Claims Act, 31 U.S.C. § 3729, et seq. “In 1992, Loral contracted with the government to update flight training programs, including simulated programs for the F-15E Weapon System Trainer (WST) being developed by the Air Force. The lawsuit, which was unsealed today, alleges that Loral wrongfully inflated estimated costs it was required to disclose during contract negotiations, resulting in an inflated contract price and false claims for payment under the contract.”