Investigations

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Lockheed-Martin Settles for $10.5 Million in Overcharge Case

Summary

An OIG investigation and audit by the Defense Contract Audit Agency disclosed that IBM's Federal Systems Division overcharged the FAA for rent on four office buildings in Rockville, MD, by approximately $15 million. Lockheed-Martin (which acquired IBM's Federal Systems Division) agreed to credit the FAA with $10,500,000, to be offset through future billings.