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.