Title: Lockheed Martin: Corporate Rap Sheet | Corporate Research Project
Headings: Lockheed Martin: Corporate Rap Sheet
Lockheed Martin: Corporate Rap Sheet
Lockheed Martin

Content: In January 2003 Lockheed agreed to pay $1.4 million to settle allegations that Loral Corp., which it acquired in 1996, had overbilled the Air Force on the F-15E Weapon System Trainer. In June 2003 Lockheed paid $7.1 million to settle charges that one of its units submitted fraudulent lease cost claims to NASA, for which it was doing work on the space shuttle program. In August 2003, Lockheed agreed to pay $37.9 million to settle charges that it inflated costs in several contracts for the U.S. Air Force. In January 2005 Lockheed Martin Missiles and Fire Control agreed to pay $1.4 million to resolve allegations of mischarging the U.S. Army in connection with its production and support contracts for the Multiple Launch Rocket System. In 2007 Lockheed agreed to repay the federal government $265 million plus interest in connection with overbilling for work on the F-35 Joint Strike Fighter. The company called the overbilling “inadvertent.” A February 20008 U.S. Government Accountability Office report singled out Lockheed’s F-22A fighter plane in a review of weapons systems plagued by large cost overruns, delays and quality problems. ( The following year the Senate voted to terminate the F-22 program.) In June 2008 the Project On Government Oversight made public a 2007 report by the Defense Contract Management Agency that found Lockheed failed to follow 19 of 32 Pentagon guidelines on tracking and managing costs on major weapons programs. In August 2008 Lockheed agreed to pay $4 million to settle charges that it failed to get permission to sell missiles to the United Arab Emirates and that the company revealed classified information during negotiations with the Persian Gulf nation.