Lockheed Subsidiary to Pay $27.5 Million to Settle Overbilling Allegations

The Department of Justice has announced that Lockheed Martin Integrated Systems has agreed to pay $27.5 million to resolve allegations that it violated the False Claims Act by knowingly overbilling the government for work performed by LMIS employees who lacked required job qualifications.  LMIS is a subsidiary of Lockheed Martin Inc., headquartered in Bethesda, Maryland.

The alleged mischarging occurred on two contracts with the Army Communication and Electronics Command to provide rapid access to products and services in Iraq and Afghanistan. Individual task orders were to be separately negotiated to quickly meet the needs of CECOM.

LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to at the rates of more qualified employees.  The overbilling allegedly resulted in greater profit for LMIS.

For more information, see the DOJ release.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
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