Prosecutors: Lockheed Martin subsidiary pays $27.5M for allegation it overbilled government

Industrials Associated Press

A subsidiary of defense contractor Lockheed Martin has agreed to pay $27.5 million to resolve allegations that it overbilled the government, federal prosecutors announced Friday.

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U.S. Attorney Paul Fishman said that Lockheed Martin Integrated Systems agreed to the settlement for what the government alleges was overbilling for work on two U.S. Army Communications and Electronics Command contracts.

A message seeking comment left with Lockheed Martin wasn't immediately returned. Prosecutors noted in a news release that "there has been no determination of liability."

"U.S. forces rely on the goods and services provided by defense contractors, so it is imperative the government be able to rely on those contractors to adhere to the rules," Fishman said in the release. "This settlement should remind all who do business with the government that there is a price to pay for fudging the math."

The work was done at Fort Monmouth in New Jersey, and the Aberdeen Proving Ground in Maryland. Fishman said the subsidiary used under-qualified employees, but billed the government at rates meant for qualified workers.