On February 6, the U.S. Department of Justice (DOJ) announced that Lockheed Martin Corporation agreed to pay $29 million to settle allegations that it violated the False Claims Act through defective pricing on contracts for F-35 military aircraft. The settlement resolves allegations brought forward by a whistleblower in a qui tam lawsuit.
According to the government, Lockheed Martin “inflated pricing proposals it submitted to obtain contracts for the F-35 by failing to provide to (the Department of Defense’s) DOD’s F-35 Joint Program Office (JPO) accurate, complete, and current cost and pricing data during the negotiations leading to the award of five contracts for the production or sustainment of the F-35.”
The DOJ alleges that Lockheed Martin violated the Truth in Negotiations Act (TINA) which mandates that when negotiating sole source contracts, the government has access to the cost or pricing data that the offeror used when developing its proposal.
“Had LMC provided accurate, complete, and current cost and pricing data, JPO would have awarded the contracts in lower amounts,” the government states.
“Those who do business with the government must do so fairly and honestly,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “We will pursue contractors that knowingly misuse taxpayer funds.”
“The United States relies on contractors such as Lockheed Martin to provide accurate, complete, and current information, including...
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