L3 Technologies Inc agrees to pay $62 million to resolve False Claims Act violations

L3 Technologies Inc agrees to pay $62 million to resolve False Claims Act violations

By DCAA Staff Writer

L3 Technologies Inc. (L3) agreed to pay the United States $62 million to resolve allegations that its Communications System West division violated the False Claims Act and the Truth in Negotiations Act. The allegations stem from L3 knowingly making false statements and failing to disclose accurate, current and complete cost or pricing data for communications equipment sold to various government agencies including the Air Force, Army and Navy.

L3 manufactures communications equipment to operate unmanned vehicles and retrieve data and visuals for military operations and intelligence. The United States used three sole-source, fixed-price contracts to purchase equipment products between 2006 and 2014. In 2011, DCAA auditor Kaye Miller submitted a Form 2000, formally reporting and escalating suspected fraud, waste or abuse in the contract to investigative authorities. Kaye's work identified duplicative costs of low-cost common-stock items, such as nuts and bolts, within the proposals. As a result of Kaye's work, the United States alleged L3 knowingly double-charged the government for these parts. The settlement also resolved claims that L3 failed to disclose accurate, complete, and current cost or pricing data related to labor, materials, and other manufacturing costs for the devices, including their versions and kits.

DCAA's Operations Investigative Support Division (OIS) auditors helped the investigation, working alongside multiple investigative agencies and offices. The team prepared damage models and analyzed proposal documents and invoice histories to support the investigation. This settlement underscores DCAA's commitment to supporting the Warfighter and protecting the taxpayer by ensuring fair and reasonable contracts for the DoD.

Read the press release for more information.