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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

Machine Tools Export Violation (China)

Date: 11/14/2001 (Date of Settlement)

Misconduct Type: Import/Export

Enforcement Agency: Commerce

Contracting Party: None

Court Type: Administrative

Amount: $2,120,000

Disposition: Fine

Synopsis: “The Department of Commerce... imposed a $2.12 million civil penalty against McDonnell Douglas [a subsidiary of Boeing]... as part of a settlement of charges that the company violated federal export control laws. The penalty is the maximum fine possible for the alleged violations.” McDonnell Douglas was alleged to have exported machine tools to China between 1994 and 1995 by submitting license applications containing false and misleading statements. “The Boeing Company assumes responsibility and liability for all exports under the Commerce Department's jurisdiction made or to be made by McDonnell Douglas.”