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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
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.
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