Windsor Military Manufacturing Company Repays Inflated Contract Rates

WINDSOR, CT — A Windsor-based military manufacturer has entered into a civil settlement agreement with the United States and has paid $478,586.49 to resolve allegations that it violated the False Claims Act by inflating rates charged to and paid by the government on defense contracts.

Triumph Actuation Systems – Connecticut, LLC, which designs and manufactures mechanical and actuation components for commercial and U.S. military aircraft and military systems, entered into the agreement Tuesday, according to Vanessa Roberts Avery, United States Attorney for the District of Connecticut.

The government contends between April 1, 2014 and March 31, 2020, Triumph inflated the general and administrative rates charged to and paid by the government and higher tier contractors on government contracts by including certain labor costs in those rates when, in fact, those same costs had already been directly charged to and paid by others. As a result of Triumph’s inflated G&A rates, Triumph was paid twice for the same costs, Avery said.

"Federal contractors who falsely and fraudulently overbill the government, including defense contractors, will be held accountable," Avery said. "We thank the relator for coming forward to report the fraudulent conduct, and DCIS, Army CID, NCIS and DCAA for thoroughly investigating this matter."

Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office said, “Investigating allegations of cost mischarging on Department of Defense contracts is a top priority for the Defense Criminal Investigative Service, the law enforcement arm of the DoD Office of Inspector General. The DCIS is committed to working with its law enforcement partners and the U.S. Attorney’s Office to ensure the integrity of the DoD procurement process. The Defense Contract Audit Agency’s Operations Investigative Support Division provided valuable assistance in this matter."

"We are very pleased with today's announcement," Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office said. "This is a true testament to our continued commitment to work closely and seamlessly with our fellow law enforcement agencies to protect the financial interests of the United States Army and the United States Government as a whole."

The False Claims Act allegations resolved by the settlement were originally brought in a lawsuit filed by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The relator (whistleblower), a former employee of Triumph, will receive $90,931.43 as his share of the recovery, according to Avery.

The investigation was conducted by the Defense Criminal Investigative Service, the Department of the Army Criminal Investigative Division, the Naval Criminal Investigative Service, and the Defense Contract Audit Agency Operations Investigative Support Division.