Menu

Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Alleged False Claims and Kickbacks on Hanford Site Subcontract

The United States sued Mission Support Alliance LLC (MSA), Lockheed Martin Corporation (LMC), Lockheed Martin Services Inc. (LMSI), and Jorge Francisco Armijo for alleged false claims and kickbacks in connection with a subcontract to support the cleanup at the Hanford Nuclear Site. (During the time period in question, MSA was owned by Lockheed Martin Integrated Technology, Jacobs Engineering Group, and Centerra Group (formerly Wackenhut Services), and Armijo served as president of MSA.) The lawsuit involved a support services subcontract MSA awarded to LMSI in 2009. The government alleged the defendants knowingly made false statements to the Department of Energy regarding the amount of profit included in the billing rates for LMSI under the subcontract, causing the government to pay the defendants tens of millions of dollars in inflated claims and unallowable profit. The government also alleged LMC made payments of more than $1 million to Armijo and other MSA executives in order to obtain improper favorable treatment from MSA with respect to the award of the subcontract, in violation of the Anti-Kickback Act. In April 2021, it was reported the defendants agreed to pay the government $6 million in restitution to settle the lawsuit.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
Energy
Court Type
Civil
Disposition
Settlement
Date of Complaint
2/8/2019
Contractors Involved Penalty
Total
Lockheed Martin Unknown
Further Information Released
Complaint 2/8/2019
DOJ Press Release 2/8/2019

See also:

Federal Contractor Misconduct Database