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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 »
Arms Export Control Act Violation (QRS-11 Gyrochip)
Date: 03/28/2006 (Date of Consent Agreement)
Misconduct Type: Import/Export
Enforcement Agency: State Dept.
Contracting Party: None
Court Type: Administrative
Synopsis: Boeing paid a $15 million fine for a violation of the Arms Export Control Act involving unlicensed foreign sales of commercial airplanes containing the QRS-11 gyrochip (gyroscopic microchip), a component that has military applications. The State Department also imposed additional oversight and compliance requirements on Boeing because of three previous export violations (see Boeing instances “Arms Export Control Act Violation (Transfer of Rocket Data to China),” “Defense Services to Russia and Elsewhere (Arms Export Control Act Violation),” and “Wedgetail Project (Arms Export Control Act Violation)”). According to the State Department, between 2000 and 2003 Boeing sold to China and other countries 94 commercial jets with the gyrochip embedded in the flight boxes without obtaining an export license and in “blatant disregard” of State Department directives.