The Justice Department (DoJ) yesterday said Sikorsky Aircraft [UTX] has agreed to pay the United States $2.9 million to resolve fraud allegations in connection with its contract for the manufacture of UH-60 Black Hawk helicopters for the Army.
Sikorsky manufactures Black Hawk and variants for the Army, Navy, Air Force, and Marines, as well as for other nations.
Under Sikorsky’s Army contract, Sikorsky was required to install armored plates in the Black Hawk to the left of the pilot and to the right of the co-pilot that were ballistically tested to ensure that the helicopters could withstand combat.
The United States alleged that from 1991 to 2006, Sikorsky knowingly installed armored plates purchased from Ceradyne [CRDN] that had not been ballistically tested as required under the contract.
The Army knows of no injuries resulting from the untested plates. Under the False Claims Act, a contractor who knowingly claims payment for noncompliant goods is liable for three times the government’s damages plus a $5,500 to $11,000 civil penalty for each false claim.
“This settlement sends a message that fraud, especially when it concerns the safety of our men and women in uniform, cannot and will not be tolerated in Government contracts,” Michael Hertz, acting Assistant Attorney General for DoJ’s Civil Division, said in a statement. “As demonstrated here, the Department, including the United States Attorneys’ offices, and investigative agencies such as the ones here, are committed to rooting out such fraud and prosecuting it.”
John Hughes, chief of the Civil Division for the U.S. Attorney’s Office in Connecticut, said: “It is critically important that manufacturers perform all required testing of parts for equipment being used by our military personnel.”
The Defense Criminal Investigative Service, Army Criminal Investigative Division, Defense Contract Audit Agency, and Defense Contract Management Agency conducted the investigation, in conjunction with the United States Attorney’s Office for the District of Connecticut.