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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Bid-Rigging on NAVO MSRC Contract

David Magee, a former employee at the Naval Oceanographic Major Shared Resource Center (NAVO MSRC) at the Stennis Space Center in Mississippi filed a False Claims Act lawsuit against Science Applications International Corp. (SAIC); Applied Enterprise Solutions (AES); Lockheed Martin; Dale Galloway, Chief Executive Officer of AES; Stephen Adamec, former Director of NAVO MSRC; and Robert Knesel, Deputy Director of NAVO MSRC. In April 2004, the General Services Administration (GSA) awarded a $3.2 billion contract to provide support services to the NAVO MSRC to SAIC, which partnered with subcontractors AES and Lockheed Martin Space Operations. SAIC was paid a total of $115 million under the contract, of which Lockheed Martin was paid $2 million. Magee alleged that Adamec and Knesel conspired with Galloway, AES, SAIC, and Lockheed to ensure that SAIC and its teaming partners were awarded the contract. In January 2011, Lockheed settled the lawsuit for $2 million. See related SAIC pending instance, “Bid-Rigging on NAVO MSRC Contract”.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
GSA
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
1/24/2011
Contractors Involved Penalty
Total
Lockheed Martin $2,000,000
Further Information Released
Complaint 3/4/2011
DOJ Press Release 3/4/2011

See also:

Federal Contractor Misconduct Database