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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 »

Lockheed Martin

Contract Dispute (Idaho National Engineering and Environmental Laboratory)

Date: 10/29/2004 (Date of Judgment)

Misconduct Type: Poor Contract Performance

Enforcement Agency: Energy

Contracting Party: Energy

Court Type: Civil

Amount: $66,000,000

Disposition: Judgment Against Defendant

Synopsis: On October 29, 2004, the U.S. District Court in Idaho issued a decision upholding the termination for default of Lockheed’s Pit 9 contract and rejecting the Corporation’s counterclaims. "The court concluded that the Corporation must repay $54 million in progress payments, plus interest, and pay approximately $12 million in decontamination and decommissioning costs." The lawsuit stemmed from a fixed-price contract that was awarded in 1994 for the design, construction and testing of remediation facilities and the remediation of waste found in Pit 9 at the Idaho National Engineering and Environmental Laboratory reservation. In 1998, the management contractor for the Department of Energy terminated the Pit 9 contract for default. Ultimately, the company recorded an after-tax charge of $117 million as a result of the decision.