Posted on 08/09/2007 10:44:50 AM PDT by Freeport
Lockheed Martin overcharged the US government by $265 million on the F-35 Joint Strike Fighter development programme, the company announced on 9 August.
The company is now in the process of reimbursing the funds to the government, although it was not immediately clear if the funds will be returned to the JSF programme office for reinvestment or go elsewhere.
“We are working with the government to determine the appropriate amount of interest” owed, according to a released company dossier.
The government’s joint programme office did not immediately return a phone call seeking comment.
The overbilling issue was discovered during a “routine internal audit” by the company, a spokesman told Flight. The trouble “had to do with invoices connected with [JSF partners] Northrop Grumman and BAE Systems,” the spokesman said, adding that neither of Lockheed’s partners were not to blame for the error.
Lockheed incorrectly coded certain costs in the programme’s billing system, the company says.
(Excerpt) Read more at flightglobal.com ...
No, but very commendable of L-M to catch it and pay it back. Honesty is always a Good Thing.
Does this mean that both of the partners WERE to blame for the error?
Yeah.. At least they’re not acting like Boeing...
Pragmatic and prudent more than commendable. If the company catches it, it is a mistake and consequences are probably minor. If the government catches it, then it is more likely to be considered fraud and somebody loses a job and maybe even goes to jail.
Same behavior almost cost them the contract in the first place.
Martha???
/sarcasm off
When I read that, I was thinking the same think, but I suspect it’s a type-o.
It's commendable and prudent. Nothing wrong with both. :-)
“neither of Lockheed’s partners were not to blame”
Yeah. pretty sneaky how the spokesman passed the blame on others.
Blame Congress to a large extent for all the great work they do to mess things up. Their cure is often worse than the original disease.
Governments, wherever they are in the world, are easy to rip off. After all, it is not their money they are spending.
This is why GE sold it’s Aerospace operations to Martin-Marietta which became Lockheed Martin. GE didn’t want the “meatball” on the NBC Nightly News
FWIW, GE still holds 43% of the outstanding shares (the largest block of voting shares) and controls two seats on L-M’s board of directors.
This is a profit opportunity for defense contractors. By jumping through all the hoops to comply, the costs of the programs are driven up. Since the contracts usually give a fixed % of the contract as profit, the more costly the effort, the more profit to be made.
Standard bureaucratic growth model.
Man if that isn't the truth. Take it from someone who works in government contracts for a defense contracting company.
Just check out some of the Federal Acquisition Regulations (FAR) and Defense Federal Acquisition Regulations Supplement (DFARS) we have to follow.
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