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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

Lockheed Engineering Sciences Corporation Case (False and Fraudulent Lease Cost Claims)

Date: 06/10/2003 (Date of Settlement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: NASA

Contracting Party: NASA

Court Type: Civil

Amount: $7,100,000

Disposition: Settlement

Synopsis: Lockheed Martin settled alleged violations of the False Claims Act, 31 U.S.C. § 3729, et seq., and Federal Acquisition Regulations in a building lease agreement with NASA. “The dispute focused upon the government’s contention that as part of the costs included in the 10 year lease agreement negotiated in 1992, [Lockheed] included charges associated with promissory notes it held as interest bearing debt. This debt was concealed in the lease costs and charged to NASA during the course of the contract.”