Military contractor pays United States more than half million dollars to settle False Claims Act allegations

DAYTON, Ohio – A company that contracted with the United States Air Force to produce a pod for military aircraft paid the United States $512,000 to settle False Claims Act and related allegations. 

The KeyW Corporation (KeyW) was awarded a contract in August 2020 to produce a prototype of an AgilePod variant for the Air Force, the AgilePod-26. The AgilePod-26 was designed to be a multi-mission pod capable of carrying intelligence, surveillance and communications equipment on military aircraft. 

The settlement resolves allegations that KeyW made false representations or omitted material information regarding the adequacy of the adhesive curing procedures that its subcontractor used for the prototype’s endcones, and the anticipated effectiveness of proposed testing procedures that the company used to investigate or address concerns regarding the prototype’s endcones.

“The manufacturing of defective products, including ones intended for use in military aircraft, creates a significant risk to America’s warfighters,” said Acting Special Agent in Charge Christopher Silvestro of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office. “DCIS remains committed to working with our law enforcement partners and the Justice Department to hold accountable those who commit fraudulent activity that impacts the Department of Defense.”

“This investigation shows our commitment to work with our partner agencies and the Department of Justice to safeguard Air Force systems. OSI will continue to protect warfighter readiness by pursuing individuals and corporations who jeopardize the safety and effectiveness of those critical systems and equipment" stated William Rouse, Special Agent in Charge, Procurement Fraud Det 4, Wright Patterson AFB.

Assistant United States Attorney Matthew J. Horwitz represented the United States in this matter. Air Force Material Command Law Office, Procurement Fraud Law Division attorneys Sarah Schild and Kate Rottmayer also helped pursue this matter.

The settlement agreement is neither an admission of liability by KeyW nor a concession by the United States this its claims are not well founded.

# # #