A Windsor-based defense contractor has agreed to a settlement with the federal government to resolve allegations that it inflated rates charged to the government.
Triumph Actuation Systems, a company that designs and manufactures mechanical and actuation components for commercial and U.S. military aircraft and military systems, agreed to pay $478,586 to dismiss the allegations brought under the False Claims Act, according to the Connecticut U.S. District Attorney’s Office.
The government alleges that between April 1, 2014, and March 31, 2020, Triumph inflated its general and administrative rates by including particular labor costs in those rates that had already been charged to and paid by others, effectively getting paid twice for the same costs.
“Procurement fraud wastes taxpayer dollars, damages the integrity of the Department of the Navy procurement process, and ultimately threatens Navy and Marine Corps readiness,” Special Agent in Charge Michael T. Wiest of the NCIS Northeast Field Office, said. “NCIS and our federal partners remain committed to ensuring the good stewardship of taxpayer dollars and the safety of Department of the Navy warfighters by fully investigating all allegations of procurement fraud.”
The allegations were originally brought in a lawsuit filed by a former employee of Triumph, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $90,931.43 as a share of the recovery.
“Federal contractors who falsely and fraudulently overbill the government, including defense contractors, will be held accountable,” U.S. Attorney Vanessa Roberts Avery said. “We thank the [whistleblower] for coming forward to report the fraudulent conduct, and DCIS, Army CID, NCIS and DCAA for thoroughly investigating this matter.”
