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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

Rent Overcharge

Date: 03/31/2001 (Date of Settlement)

Misconduct Type: Defective Pricing

Enforcement Agency: Transportation

Contracting Party: Transportation

Court Type: Civil

Amount: $10,500,000

Disposition: Settlement

Synopsis: Lockheed gave the FAA $10.5 million in credit for future billing to settle a case involving overcharged rent. “An OIG investigation and audit by the Defense Contract Audit Agency disclosed that IBM’s Federal Systems Division overcharged the FAA for rent on four office buildings in Rockville, MD, by approximately $15 million. Lockheed-Martin (which acquired IBM’s Federal Systems Division) agreed to credit the FAA with $10,500,000, to be offset through future billings.”