Wed, Sep 03, 2008
Sues Planemaker Under False Claims Act
The US government filed a federal lawsuit Tuesday against
Boeing, saying the American planemaker and defense contractor
deliberately inflated the price for a decoy system fitted to US Air
Force B-1B Lancer bombers.
According to The Associated Press, the lawsuit claims the Air
Force paid $7.5 million more than it should have, since Boeing was
able to find a cheaper source for parts needed for the system...
but failed to disclose that fact during contract negotiations, way
back in 1990.
Specifically, the contract was based on Boeing's assertions it
would manufacture parts for 57 decoy systems -- towed behind the
bombers to thwart attacks from ground-based missiles and
shoulder-fired rockets -- at a Boeing facility in Palmdale, CA. But
the government says Boeing planned all along to close that plant,
and obtain parts from a subcontractor at reduced cost.
Assistant US Attorney Lisa Palombo said had the USAF known of
that change, it would have pushed for a lower price... and
furthermore, that Boeing employees warned their managers to
disclose the potential savings.
"It's a significant amount and, of course, it's all taxpayer
money," she said. "We make it a priority to collect all taxpayer
funds that are obtained through fraud. We don't make exceptions for
anyone, individuals or large companies."
Company spokesman Forrest Gossett said Boeing believes it
conducted its side of the negotiations in good faith, and that it
fulfilled its contract.
The Air Force paid $36 million for the kits, according to the
AP. Under the False Claims Act, the government may recover up to
three times the amount it overpaid, on top of penalties.
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