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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

Inflating the Price of B-1 Bomber Towed Decoy System

Date: 09/02/2008 (Date of Filing)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Defense – General

Contracting Party: Defense - Air Force

Court Type: Civil

Amount: $4,000,000

Disposition: Settlement

Synopsis: The federal government filed a False Claims Act lawsuit against Boeing, claiming the company unlawfully inflated the price it charged the Air Force for a missile-decoy system for the B-1 bomber. The government claimed that during contract negotiations in 1998, Boeing failed to disclose that it was outsourcing the fabrication of parts used in the system, which led the Air Force to overpay Boeing by $7.5 million on 140 submitted invoices. In October 2010, Boeing agreed to pay $4 million to settle the lawsuit. Boeing settled without admitting wrongdoing.