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Sikorsky To Pay $3.5M Over Army Cost Claims

Tue, 04/01/2014 - 8:13am

HARTFORD, Conn. (AP) -- Helicopter maker Sikorsky Aircraft Corp. has agreed to pay $3.5 million to resolve allegations it violated federal law and inflated the cost of spare parts to the Army, federal prosecutors said Monday.

From 2008 to 2011, Sikorsky did not disclose accurate, complete and current cost and pricing data to the Army purchasing unit that buys spare parts for the manufacturer's Black Hawk helicopter. When determining the prices to be charged to the government, Sikorsky failed to disclose it had lower prices for certain parts.

The government paid artificially excessive prices, authorities said.

"Failure to disclose accurate, complete and current cost and pricing data created an uneven playing field in the negotiation process, which tilted unfairly in Sikorsky's favor," U.S. Attorney Deirdre M. Daly said.

Stratford-based Sikorsky is a subsidiary of United Technologies Corp. In a statement, it said it's pleased to have resolved the matter.

Authorities say Sikorsky violated the False Claims Act.

"Unethical decisions and instances of fraud occurring within the defense contractor community continue to burden the U.S. defense budget and puts U.S. military readiness at a disadvantage," said Craig W. Rupert, special agent in charge of the Defense Criminal Investigative Service.

Military contractors are required by law to disclose accurate, complete and current cost and pricing data to the government during negotiations.

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