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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…

Arms Export Control Act Violation (QRS-11 Gyrochip)

Boeing paid a $15 million fine for a violation of the Arms Export Control Act involving unlicensed foreign sales of commercial airplanes containing the QRS-11 gyrochip (gyroscopic microchip), a component that has military applications. The State Department also imposed additional oversight and compliance requirements on Boeing because of three previous export violations (see Boeing instances “Arms Export Control Act Violation (Transfer of Rocket Data to China),” “Defense Services to Russia and Elsewhere (Arms Export Control Act Violation),” and “Wedgetail Project (Arms Export Control Act Violation)”). According to the State Department, between 2000 and 2003 Boeing sold to China and other countries 94 commercial jets with the gyrochip embedded in the flight boxes without obtaining an export license and in “blatant disregard” of State Department directives.

Misconduct Type
Import/Export
Enforcement Agency
State Dept.
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Consent Agreement
3/28/2006
Contractors Involved Penalty
Total
Boeing Company $15,000,000
Further Information Released
Consent Agreement 5/21/2008
Draft Charging Letter 5/21/2008

Federal Contractor Misconduct Database