The Department of Justice confirmed the $29.74 million payment from Lockheed Martin on February 6, 2025. This financial penalty resolved allegations under the False Claims Act regarding defective pricing on F-35 Lightning II contracts. The settlement specifically addressed violations of the Truth in Negotiations Act (TINA). Federal statutes mandate that defense contractors must provide "accurate, complete, and current" cost and pricing data when negotiating sole-source contracts. The investigation proved Lockheed Martin failed to disclose supplier cost data to the Joint Program Office (JPO) between 2013 and 2015.
Auditors discovered that the corporation inflated pricing proposals for five specific F-35 contracts. These contracts covered Low-Rate Initial Production and sustainment operations. The defense giant possessed knowledge of lower supplier costs but withheld this information from government negotiators. This suppression of data forced the Department of Defense to agree to higher contract values than necessary. The taxpayer absorbed the premium. The $29.74 million recovery includes $11.5 million in restitution plus interest calculated from July 2024.
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