FOR IMMEDIATE RELEASE CIV
FRIDAY, OCTOBER 18, 1996 (202) 616-2765
TDD (202) 514-1888
RANDTRON SYSTEMS INC. WILL PAY UNITED STATES
$500,000 TO SETTLE FALSE CLAIMS ACT ALLEGATIONS
WASHINGTON, D.C. -- A unit of Lockheed Martin Tactical
Systems will pay the United States $500,000 to settle claims it
didn't give the government relevant information that would have
lowered the price of military contracts for radar antennas, the
Department of Justice announced today.
Assistant Attorney General Frank W. Hunger of the Civil
Division and Michael J. Yamaguchi, United States Attorney for San
Francisco, said the settlement resolves claims with Randtron
Systems Inc. of Menlo Park, California, that the government had
intended to bring in a suit filed under the False Claims Act.
The Department said Randtron produced TRAC-A radar
antennas for the Navy's E-2C Hawkeye early warning aircraft under
subcontracts with Grumman Aerospace Corporation, the prime
contractor for the Hawkeye.
The government alleged that during negotiations for
four production subcontracts from 1986 through 1988 Randtron
failed to make required disclosures to Grumman and Department of
Defense officials that it had substantial quantities of excess
parts and materials left over from prior antenna production jobs
that it intended to use in the contracts under negotiation.
The government claimed that if Randtron had made such
disclosures the Navy would have negotiated lower prices for the
radar antennas. The government alleged that Randtron was
required to disclose the information to the government under the
Truth in Negotiation Act.
Randtron entered into the settlement agreement without
admitting liability, legal fault or responsibility.