WASHINGTON — Boeing agreed to an $8.1 million settlement with the federal government to resolve allegations that the corporate submitted false claims and made false statements regarding its contracts with the U.S. Navy to construct the tiltrotor V-22 Osprey, the Justice Department said Thursday.
The federal government had alleged that from about 2007 to 2018, Boeing didn’t conduct contractually required monthly tests on autoclaves that were utilized in the strategy of curing composite materials used to make Ospreys at its Ridley Park, Pennsylvania, facility. Autoclaves are pressure cooker-like machines that use high heat and pressure to sterilize objects and kill bacteria.
The settlement, which was signed Wednesday, said Boeing denies the allegations that it didn’t conduct the required autoclave tests, and doesn’t admit liability. Justice said that the claims – while now resolved – remain allegations. Boeing and the federal government agreed to the settlement to avoid lengthy litigation to resolve the claims.
The U.S. Navy didn’t immediately reply to Defense News’ requests for comment. A Boeing spokesperson reiterated in an announcement that the settlement reflected no admission of liability.
Justice said that former Boeing employees who worked on autoclave operations and composites fabrication on the V-22 program and filed a civil motion in 2016 under the qui tam, or whistleblower, provisions of the False Claims Act. The federal government can pay those former employees greater than $1.5 million as a part of the settlement of the case, and Boeing can pay their attorneys greater than $1.1 million for his or her fees and costs.
“The federal government expects contractors to stick to contractual obligations to which they’ve agreed and for which they’ve been paid,” Principal Deputy Assistant Attorney General Brian Boynton, who’s head of Justice’s civil division, said within the statement. “Today’s settlement demonstrates our commitment to carry accountable contractors who violate such obligations and undermine the integrity of the federal government’s procurement process.”
Editor’s note: This story was updated after publication to incorporate a transient Boeing comment.
Stephen Losey is the air warfare reporter for Defense News. He previously covered leadership and personnel issues at Air Force Times, and the Pentagon, special operations and air warfare at Military.com. He has traveled to the Middle East to cover U.S. Air Force operations.