Airbus to pay USD1.04 million to settle overbilling case

Airbus US Space & Defense Inc, formerly Airbus Defense and Space Inc (ADSI), has agreed to pay USD1.04 million to resolve allegations that it violated the False Claims Act by overcharging various US federal agencies, including the navy, the US Department of Justice (DoJ) announced on 4 October.

“Government contractors have a responsibility to bill the government both accurately and transparently,” said Brian Boynton, acting assistant attorney general of the DoJ's civil division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”

The DoJ alleged that ADSI included an unapproved cost rate in the contract proposals it submitted to agencies from January 2016 to January 2017. It also accused ADSI of charging inaccurately disclosed fees on certain contracts from 2013 to 2020, and overcharging the navy to store a radar for eight months in 2019.

The allegations surfaced in a lawsuit that former ADSI employee Maros Kmec filed in US federal court in Virginia in 2019, the department said. Whistleblower law entitles Kmec to receive USD157,220 of the settlement funds.

In a statement, Airbus US Space & Defense Inc, or Airbus US for short, said it co-operated with the government's investigation and is pleased to have resolved the matter. “Airbus US remains committed to providing the US government with exemplary solutions at a competitive price,” the statement says.

Airbus US, which is based in northern Virginia, adopted its current name last year.