Another fraud incident with overcharging.
Sikorsky is a Lockheed-Martin subsidiary.
Sikorsky Support Services Inc., a helicopter manufacturer headquartered in Stratford, Conn., agreed to pay the federal government $70 million in a settlement alongside Wisconsin-based Derco Aerospace Inc. because of claims that it knowingly overcharged the Navy for spare parts and other materials needed to repair and maintain the aircraft it already uses.
According to a release from the Department of Justice, Sikorsky and Derco, which are both owned by the same parent company, Lockheed Martin, entered into a type of contract that violates federal statute because it gives suppliers an incentive to drive up government costs — which is what the lawsuit argued the two companies were doing.
The release said Sikorsky was purchasing parts from Derco at the original cost plus an additional markup of 32%, and then submitting cost vouchers to the Navy for reimbursements. The lawsuit alleged that Sikorsky and Derco’s failure to disclose those markup costs meant that both companies knowingly presented the Navy with false and fraudulent cost vouchers.
https://www.wshu.org/connecticut-news/2024-06-21/ct-sikorsky-doj-derco-settlement-fraud-charges
More:
https://www.justice.gov/opa/pr/sikorsky-support-services-inc-and-derco-aerospace-inc-agree-pay-70m-settle-false-claims-act
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