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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…

TH-67 and OH-58 Program Mischarging

According to the October 2006 newsletter of the U.S. Army Legal Services Agency, Procurement Fraud Branch, Contract & Fiscal Law Division: “In July 2006, Bell Helicopter Textron Inc. paid approximately $6.4 million to the Army to resolve a pending cost mischarging issue. In August 2004, Bell Helicopter made a voluntary disclosure of possibly fraudulent conduct to the DoD IG. The general nature of the disclosure was that Bell may have overcharged the Government for subcontractor costs, failed to properly document material costs, and used improper source selection criteria when selecting subcontractors for the OH-58 and TH-67 programs. After coordination with DOJ, DODIG admitted Bell into their Voluntary Disclosure Program. The Voluntary Disclosure is proceeding. Bell has taken corrective action and repaid the Army $6.4 million.” In May 2010, the Department of Justice announced that Bell submitted additional reports detailing similar overcharges arising from intra-company transactions with Bell Helicopter Textron Canada Limited and paid an additional $3.7 million. According to DOJ, the total Bell has paid to resolve civil claims arising from its cost charging practices currently stands at $16.6 million.

Misconduct Type
Cost/Labor Mischarge
Enforcement Agency
Defense – Army
Contracting Party
Defense - Army
Court Type
Administrative
Disposition
Settlement
Date of Settlement - approx.
7/1/2006
Contractors Involved Penalty
Total
Textron, Inc. $16,570,018
Further Information Released
DOJ Press Release 7/14/2010
Army Procurement Fraud Advisor’s Newsletter (excerpt) 1/29/2010

Federal Contractor Misconduct Database