Lockheed Martin agreed to a $2 million settlement to resolve allegations that it overbilled the Air Force for fuel used to test-out C-130s prior to delivery, the US Attorney’s Office for the Northern District of Georgia stated. “The settlement reflects our resolve to ensure that companies that overbill or overcharge the government will be identified and held responsible for their actions,” acting district US Attorney John Horn said in an official statement. The Air Force Office of Special Investigations, working in tandem with DOD investigators, identified that the company exceeded the 22,000 gallons allocated for the testing of each aircraft and failed to reimburse the government between 2006 and 2013. Investigators further determined that government-funded fuel was used for unrelated projects at the company’s facility in Marietta, Ga. “Lockheed Martin has resolved the issues that led to this settlement and has no further details to add to those released by the US Department of Justice,” company spokeswoman Stephanie Stinn told Air Force Magazine in a April 8 statement.
Boeing’s receipt of the 10th lot contract award for the KC-46 Pegasus this week leaves just three lots left to complete the Air Force’s buy of the tanker, although a further buy of 75 additional aircraft as a “bridge” to the Next-Generation Aerial-refueling System (NGAS) seems increasingly likely.