Lockheed Martin Corporation will pay $2 million to settle allegations that it overbilled the government for fuel it used while manufacturing C-130 aircraft for the US Air Force, the Justice Department announced Friday.
Between 2006 and 2013, Lockheed manufactured C-130s for the Air Force at its Marietta, Georgia, facility. The federal government gave Lockheed up to 22,000 gallons of fuel per aircraft, which could be used for the engine runs, fuel operations and test flights necessary to manufacture C-130s. Once Lockheed exhausted its 22,000 gallon allotment on a particular aircraft, Lockheed, was financially responsible for any additional fuel.
However, the federal government's investigation indicated that Lockheed routinely used fuel in excess of the 22,000 gallons, but failed to reimburse the government. The evidence suggests that Lockheed used the fuel on other unrelated projects where the government was either not a party, or had not agreed to furnish fuel, according to the Justice Department.
"The resources of the United States Government are limited and must be protected," Acting U.S. Attorney John Horn said. "We expect companies doing business with the United States to be circumspect and forthright in billing the United States and using its resources ... The settlement reflects our resolve to ensure that companies that overbill or overcharge the government will be identified and held responsible for their actions."