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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

Violations of Arms Export Control Act and International Traffic in Arms Regulations

Date: 08/01/2008 (Date of Order)

Misconduct Type: Import/Export

Enforcement Agency: State Dept.

Contracting Party: Defense - General

Court Type: Administrative

Amount: $4,000,000

Disposition: Settlement

Synopsis: The U.S. State Department and Lockheed Martin Corp. reached an agreement pursuant to the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR). Lockheed submitted a voluntary disclosure concerning unauthorized actions it took to sell Hellfire missiles to the United Arab Emirates, including an unauthorized proposal to sell significant military equipment, the unauthorized export of classified and unclassified technical data, the failure to comply with requirements for safeguarding classified information, and the failure to obtain a non-transfer and use certificate. Separately, Lockheed submitted a second voluntary disclosure involving the unauthorized export of classified information on the Joint Air-to-Surface Standoff missile. Under a consent agreement, Lockheed agreed to pay a civil penalty of $4,000,000, of which $1,000,000 is suspended on the condition that it be used for remedial compliance measures.