Sikorsky To Pay $3.5 Milion In Parts-Pricing Dispute

 

HARTFORD, Conn. (AP) _ Helicopter maker Sikorsky Aircraft Corp. has agreed to pay $3.5 million to resolve allegations it violated federal law and inflated the cost of spare parts to the Army, federal prosecutors said Monday.

From 2008 to 2011, Sikorsky did not disclose accurate, complete and current cost and pricing data to the Army purchasing unit that buys spare parts for the manufacturer’s Black Hawk helicopter. When determining the prices to be charged to the government, Sikorsky failed to disclose it had lower prices for certain parts.

The government paid artificially excessive prices, authorities said.

“Failure to disclose accurate, complete and current cost and pricing data created an uneven playing field in the negotiation process, which tilted unfairly in Sikorsky’s favor,” U.S. Attorney Deirdre M. Daly said.

Stratford-based Sikorsky is a subsidiary of United Technologies Corp. In a statement, it said it’s pleased to have resolved the matter.
Authorities say Sikorsky violated the False Claims Act.

“Unethical decisions and instances of fraud occurring within the defense contractor community continue to burden the U.S. defense budget and puts U.S. military readiness at a disadvantage,” said Craig W. Rupert, special agent in charge of the Defense Criminal Investigative Service.

Military contractors are required by law to disclose accurate, complete and current cost and pricing data to the government during negotiations.

(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments

One Comment

  1. Brittius says:

    Reblogged this on Brittius.com.

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Connecticut

CBS Hartford 4 Charity
Win Red Sox Tickets All Season

Listen Live