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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

Self-Reported F-35 Overbilling

Date: 08/09/2007 (Date of Announcement)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Non-Governmental

Contracting Party: Defense - General

Court Type: N/A

Amount: $265,000,000

Disposition: Restitution

Synopsis: Lockheed Martin announced it would refund the Department of Defense roughly $265 million for inadvertently overbilling on the F-35 Joint Strike Fighter development program. Lockheed Martin discovered an accounting error during a routine audit earlier that week and immediately notified the government. The billing error, which dated back to 2002, was caused by a coding error in Lockheed’s billing system involving invoices from subcontractors Northrop Grumman and BAE Systems, neither of which was at fault for the error.