Lockheed Martin Corp. has agreed to pay the federal government $2.2 million in cash and make certain repairs valued at an additional $2.2 million to settle a whistleblower lawsuit brought by a former employee. The company sold the US Coast Guard a defective communications system for the Coast Guard’s National Security Cutters.
About the Whistleblower Statute
In 1863 to combat fraud in Union contracts during the Civil War, Congress passed the Whistleblower or Qui Tam statute. It was not until 1986 before Congress modernized the Whistleblower statute and renamed it to the False Claims Act (FCA). It became the government’s primary tool to combat fraud. Individuals who report government-program fraud bring the lawsuit on behalf of the government.
Lockheed Martin Whistleblower
A former lead engineer shined the light that Lockheed’s Radio Frequency Distribution System (RFDS) failed to meet the requirement of transmitting and receiving several different radio signals at the same time without undue interference. This is known as simultaneous operations. The Coast Guard has purchased six RFDS systems from the company along with commisioning three more.
The engineer was assigned to investigate the operation of the communications system in response to complaints from the Coast Guard. The crew told him that they had experienced difficulties receiving signals from a helicopter while it was trying to land on the ship’s helipad. The communication system was simultaneously transmitting another signal. The helicopter was able to land safely, but the implications of the situation were concerning.
The engineer worked for the company for 17 years.
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