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About POGO's Federal Contractor Misconduct Database (FCMD)

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 »

Boeing Company

Boeing Launch Services Suspension

Date: 07/24/2003 (Date of Suspension)

Misconduct Type: Ethics

Enforcement Agency: Defense – Air Force

Contracting Party: Defense - Air Force

Court Type: Administrative

Amount: $0

Disposition: Suspend/Debar - Company

Synopsis: Boeing Launch Services and Delta Program business units were suspended from receiving new federal contracts from July 24, 2003 to March 4, 2005. The suspensions were based on a pending criminal investigation into Boeing’s unlawful possession and use of a competitor’s proprietary documents in connection with the competition for a U.S. Air Force Evolved Expendable Launch Vehicle (EELV) contract, and the indictment of two former Boeing employees. A majority of the contracts assigned to Boeing were transferred to Lockheed on the basis of the suspension. The Federal Acquisition Regulation (FAR) 9.407 provides a basis for the suspension of the Boeing units. In June 2006, Boeing entered into a global settlement with the U.S. Department of Justice for $615 million to resolve this and other pending investigations. See Boeing Company misconduct instance "Illegal Hiring of Government Officials and Improper Use of Proprietary Information."