Cooperating Bell Helicopter Textron To Pay $3.7 Million More for Overcharges

Bell Helicopter Textron Inc. has agreed to pay the United States an additional $3,718,770, bringing the total paid to resolve civil claims arising from the company’s cost charging practices on some of its contracts with the government to $16,570,018, according to the Justice Department. 

The Army and other government agencies contract with the Ft. Worth-based company to purchase helicopters and parts, modifications, customization, and related goods and services. In August 2004, Bell notified the Defense Department’s Inspector General that its billing of the costs of certain subcontracts, work transfers, and other transactions with its subsidiaries, divisions, and affiliated companies had resulted in overcharges to the government. The company submitted a report in 2006 describing its conduct and the financial impact on the government and paid the government $12,851,248.
 
While the government was investigating and analyzing the conduct the company disclosed, Bell submitted additional reports detailing similar intra-company transactions with Bell Helicopter Textron Canada Limited that resulted in overcharges. As part of the settlement announced today, Bell agreed to pay an additional $3.7 million to resolve any claims the United States may have arising out of the newly disclosed conduct.
 
There’s a message here, we believe. As stated by Tony West, Assistant Attorney General for the DOJ’s Civil Division, "We are committed to working with government contractors who self-disclose serious misconduct to reach a just resolution that protects federal procurement programs and the taxpayers. Those who fully cooperate with the government will be dealt with fairly."