KeyW Made Misrepresentations Or Omissions Regarding Pod Prototype

KeyW Corporation paid the U.S. Air Force $512,000 to settle allegations related to the False Claims Act, for its false representations or omissions of material information about the adequacy of the adhesive curing procedures that its subcontractor used for the pod’s endcones and related procedures to address concerns about the endcones.

KeyW was awarded a contract in 2020 to produce a prototype of an AgilePod for the U.S. Air Force, designed to be a multi-mission pod with capability to carry intelligence, surveillance, and communications gear on military aircraft.

The settlement resolves the allegations against KeyW, according to the Department of Defense Office of the Inspector General. The settlement agreement is neither an admission of liability by KeyW nor a concession by the United States this its claims are not well founded.

Christopher Silvestro, Acting Special Agent in Charge of the DoD’s OIG Defense Criminal Investigative Service, Northeast Field Office said, “The manufacturing of defective products, including ones intended for use in military aircraft, creates a significant risk to America’s warfighters. DCIS remains committed to working with our law enforcement partners and the Justice Department to hold accountable those who commit fraudulent activity that impacts the Department of Defense.”

William Rouse, Special Agent in Charge, Procurement Fraud Det 4, Wright Patterson AFB stated, “This investigation shows our commitment to work with our partner agencies and the Department of Justice to safeguard Air Force systems. OSI will continue to protect warfighter readiness by pursuing individuals and corporations who jeopardize the safety and effectiveness of those critical systems and equipment.”

Assistant U.S. Attorney Matthew J. Horwitz represented the United States in this case, assisted by Sarah Schild and Kate Rottmayer both attorneys in the Air Force Material Command Law Office, Procurement Fraud Law Division.

FMI:  www.justice.gov/