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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…

Overbilling on the CR2 and S3 Contracts

Lockheed Martin Integrated Systems (LMIS) paid $27.5 million to settle allegations that it violated the False Claims Act by knowingly overbilling the government for work performed by employees who lacked required job qualifications. The alleged mischarging occurred on the Rapid Response (CR2) contract and the Strategic Services Sourcing (S3) contract, both awarded by the U.S. Army Communication and Electronics Command (CECOM). LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed at the rates of more qualified employees.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Defense - Army
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
12/19/2014
Contractors Involved Penalty
Total
Lockheed Martin $27,500,000
Further Information Released
DOJ Press Release 12/19/2014

Federal Contractor Misconduct Database