Boeing, a prominent name in the aerospace industry, has found itself in a financial bind and a public relations predicament after it was discovered to be in violation of manufacturing specifications for one of its U.S. Navy contracts.
Boeing has a long-standing contract for the production of the V-22 Osprey, a military aircraft capable of vertical takeoff and landing. The U.S. Justice Department has revealed that between 2007 and 2018, Boeing failed to adhere to agreed-upon standards for the fabrication of composite components.
The U.S. government alleges that Boeing neglected to conduct the required monthly testing on autoclaves used in the composite curing process. Moreover, Boeing was found to be non-compliant with additional requirements related to testing at its facility in Ridley Park, Pennsylvania. In response to these alleged violations of the False Claims Act, Boeing has agreed to pay $8.1 million to settle the matter.
Brian M. Boynton, Principal Deputy Assistant Attorney General leading the Justice Department’s Civil Division, emphasized the government’s commitment to holding contractors accountable for adhering to contractual obligations. He stated, “The government expects contractors to adhere to contractual obligations to which they have agreed and for which they have been paid. Today’s settlement demonstrates our commitment to hold accountable contractors who violate such obligations and undermine the integrity of the government’s procurement process.”
In addition to the financial settlement, Boeing’s agreement also resolves claims filed under whistleblower provisions by former employees of Boeing who were involved in composites fabrication and autoclave operations within the V-22 program. As part of the settlement, these former employees will receive over $1.5 million.
The V-22 Osprey is a combat aircraft that employs a tiltrotor system, allowing it to function both as a helicopter and a turboprop airplane. Boeing’s production team responsible for the V-22, known as “Team Osprey,” comprises over 500 U.S.-based suppliers and employs more than 27,000 individuals across 44 states.