Skip to Content

Lockheed Martin subsidiaries reach $70 million settlement for claims they overcharged Navy for parts

STRATFORD, Conn. (AP) — Two Lockheed Martin subsidiaries have agreed to pay the federal government $70 million for overcharging the Navy for aircraft parts. The U.S. Department of Justice says Sikorsky Support Services and Derco Aerospace knowingly entered into an improper subcontract for spare parts and materials for aircrafts used to train Navy pilots. Under the contract, Sikorsky, a Connecticut company, purchased parts from Derco, a Wisconsin company, at the cost Derco paid other suppliers for the parts, plus a substantial markup. Lockheed Martin says it is pleased the agreement brings the case, which originated as a federal whistleblower lawsuit, to a close.

Article Topic Follows: AP-National

Jump to comments ↓

Associated Press

BE PART OF THE CONVERSATION

KVIA ABC 7 is committed to providing a forum for civil and constructive conversation.

Please keep your comments respectful and relevant. You can review our Community Guidelines by clicking here

If you would like to share a story idea, please submit it here.

Skip to content