Reported 11 months ago
Lockheed Martin subsidiaries, Sikorsky Support Services and Derco Aerospace, are set to pay $70 million to the U.S. Department of Justice for overcharging the Navy for aircraft parts. The improper subcontract involved a 32% markup on spare parts and materials for Navy pilot training aircrafts, resulting in inflated charges to the government. The settlement, stemming from a whistleblower lawsuit filed under the False Claims Act, serves as a warning against exploiting the procurement process.
Source: YAHOO