News and Press Releases

NASA CONTRACTOR AGREES TO PAY $3 MILLION SETTLEMENT UNDER FALSE CLAIMS ACT BIRMINGHAM

FOR IMMEDIATE RELEASE
June 10, 2010


BIRMINGHAM Pratt & Whitney Rocketdyne, Inc., has agreed to pay the government almost $3 million to resolve allegations under the False Claims Act arising out of a dispute over fees charged on a contract with NASA after Pratt & Whitney merged with Rocketdyne in 2005, according to a settlement announced today by U.S. Attorney Joyce White Vance.

 Prior to the merger, Rocketdyne had subcontracted with Pratt & Whitney for work on a Space Shuttle flight support services contract Rocketdyne had with NASA. Following the August 2005 merger, Pratt & Whitney Rocketdyne billed NASA fees under the pre-merger subcontract. In December 2006, the Defense Contract Audit Agency questioned whether those subcontract fee billings allowed the merged company to reap excess profits.

Following an investigation, the parties reached a settlement.  Under the terms of the settlement agreement, Pratt & Whitney Rocketdyne will pay $2,988,819 to resolve the allegations under the False Claims Act.

  “Contractors who work on government projects have a duty to correctly bill the government for work completed under the contract,” Vance said. “My office is committed to ensuring that in cases where a contractor has improperly charged the government, a proper resolution that protects the taxpayers’ interests is achieved. The return of almost $3 million today is a good result for the citizens,” she said.

The Defense Contract Audit Agency and the NASA Office of the Inspector General investigated this matter and assisted in settlement negotiations. Assistant U.S. Attorney Lloyd Peeples represented the United States in the case.

 

Return to Top

USAO Homepage
Justice 101
USAO Briefing Room
Red Ribbon Week October 23-31
United States Attorneys 225th Anniversary
Stay Connected with Twitter
Project Safe Childhood

Help us combat the proliferation of sexual exploitation crimes against children.

Prisoner Re-entry

 

If you believe your organization has expertise or resources that could improve outcomes for ex-offenders re-entering society, please e-mail our Community Outreach Coordinator at Jeremy.Sherer@usdoj.gov
or call 205-244-2019.