L3Harris Settles False Claims Case with U.S. Military for $62 Million

L3Harris Technologies, a major defense contractor, has agreed to pay $62 million to settle allegations of submitting false claims to the U.S. military regarding equipment prices. This settlement, announced by the Justice Department on Thursday, resolves a longstanding dispute over pricing proposals submitted for government contracts from 2006 to 2014.

L3Harris stated that it was “pleased to have been able to amicably resolve the matter,” clarifying that the settlement came “without any admission of fault or liability.” Despite the settlement, the company maintained its commitment to upholding the integrity of the government procurement process and providing accurate cost and pricing data.

The settlement comes just one day after the Pentagon formally accepted a Boeing 747-8 BBJ jet from Qatar’s royal family, a gift intended to be retrofitted for use as the next Air Force One. L3Harris, which was recently selected to help modify the aircraft, has not disclosed whether it will continue working on the Air Force One project following the settlement.

Allegations of False Pricing Data

The false claims case revolves around pricing proposals submitted by L3Harris for various products acquired by the U.S. government through “sole source, fixed-price contracts.” Between 2006 and 2014, L3Harris failed to disclose accurate or current pricing data related to labor, materials, and other costs. The Justice Department alleges that the company falsely certified its pricing information in numerous government contract proposals, resulting in the settlement.

Prior to the 2019 merger with Harris Corporation, L3Harris was known as L3 Technologies, and the allegations stem from that period. The Department of Justice clarified that the settlement does not serve as an admission of liability by L3Harris or a concession by the U.S. government.

L3Harris’s Role in Air Force One Modification

While the settlement resolves past pricing issues, it does not directly impact L3Harris’s current work on the Boeing 747-8 BBJ, which was gifted to the Trump administration by Qatar’s royal family. The jet, which President Donald Trump intends to use as a replacement for the aging Air Force One, will undergo significant modifications. The $62 million settlement announcement coincided with the Pentagon’s formal acceptance of the aircraft, underscoring L3Harris’s role in the broader military and aviation sectors.

DOJ’s False Claims Allegations and Company’s Response

The Department of Justice’s allegations stem from L3Harris’s failure to disclose accurate and complete cost data regarding labor and material costs for products sold under sole source contracts. The company has faced scrutiny over its false certifications related to cost estimates submitted for contracts with the federal government.

However, L3Harris’s decision to settle without admitting fault highlights the ongoing debate about the company’s practices and the broader implications of corporate governance in government procurement.

Collaboration on Air Traffic Control Task Force

In related news, the Trump administration announced an emergency task force focused on addressing issues with air traffic control equipment at Newark Liberty International Airport. Executives from L3Harris, Verizon, and the Federal Aviation Administration (FAA) are part of this collaborative effort to resolve equipment malfunctions affecting the airport’s air traffic control system.

This task force represents a broader initiative to modernize air traffic control systems across the U.S. and ensure the reliability of equipment critical to aviation safety.


Related News: https://airguide.info/?s=L3Harris, https://airguide.info/?s=Air+force+one

Sources: AirGuide Business airguide.info, bing.com, cnbc.com