The federal government has alleged a military contractor overcharged it by at least $44 million for parts, labor and supplies on a multi-billion dollar contract for tens of thousands of trucks ordered by the Army’s acquisitions center based in Warren, MI.
Filing its complaint in U.S. District Court in Detroit, the Justice Department accused BAE Systems, the American subsidiary of a global defense and security contractor based in London, England, of “certifying and submitting false or fraudulent” prices to contracting officials at Michigan’s Army Tactical Command Life Cycle Management Command (TACOM).
“Private companies are entitled to earn an honest profit from procurement contracts with the U.S. government, but they may not knowingly overcharge the military for supplies and materials,” said U.S. Attorney Barbara McQuade in Detroit. “The conduct alleged in this complaint is akin to charging $600 for a hammer.”
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