According to the U.S. Attorney’s Office, Lockheed improperly billed the Navy and Air Force for costs of the private venture with Alenia Aerospazio.
“It is troubling that a large defense contractor with long-established contractual ties with the United States failed to follow basic accounting rules and submitted claims for costs for which reimbursement was not permitted,” U.S. Attorney Sally Quillian Yates said in the settlement announcement Friday. “Lockheed Martin’s mischarging created a significant unintended subsidy for one of Lockheed Martin’s commercial ventures, and that is unacceptable.”
But there have been other instances of Lockheed Martin, based in Bethesda, Md., overbilling or making account errors that led to settlements with the government.
In 2000, Lockheed paid the government $5 million to settle claims that the company's Marietta and Nashua, N.H., subsidiaries overcharged the Navy for anti-submarine devices. Federal prosecutors said the government paid $1.8 million to $3.8 million too much for the devices.
Three years later Lockheed Martin paid $37.9 million to settle charges that it inflated costs on four Air Force contracts, intending to use the extra money to offset cost overruns on other Air Force projects.
Lockheed, with nine U.S. locations including Marietta, had sales last year of almost $45.2 billion.
In Marietta, Lockheed is home to the C-130J Super Hercules transport and the F-22 Raptor air dominance fighter. It also has the avionics and engine modernization programs for the C-5 Galaxy strategic transport and the P-3 Orion program operations, including the new wing production line.