Boeing-owned drone maker to pay millions
By Terry Murry on Friday, January 15th, 2021 in Columbia Basin News More Top Stories
SEATTLE – Insitu, Inc., headquartered in Bingen, Washington, has agreed to pay $25 million to settle allegations that it violated the False Claims Act by knowingly submitting false cost and pricing data for contracts with the United States Special Operations Command and the Department of the Navy. In short, it sold the military drones that had used parts that the company priced as new.
The Columbia River Gorge company came to the settlement agreement without admitting to any liability. The case was first brought to the Department of Justice by a whistleblower lawsuit filed by D R O’Hara, a former employee. O’Hara will receive $4,625,000 of the recovered funds.
“We expect companies that seek to do business with the government to provide complete and accurate information so contract prices can be negotiated on a level playing field,” Acting Assistant Attorney General Jeffrey Bossert Clark of the civil division said. “This settlement demonstrates the Justice Department’s commitment to take appropriate action when it determines the taxpayer dollars have been misused.”
The lawsuit contended that between Jan. 1, 2009 and Dec. 31, 2017, Insitu entered into seven government contracts for the supply and operation of drones. It alleged that Insitu knowingly induced the government to award the noncompetitively bid contracts at inflated prices by proposing cost and pricing data for new parts and materials while planning to use less expensive recycled, refurbished, reconditioned, and/or reconfigured parts.
“Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing,” U.S. Attorney Brian T. Moran said.
