A Sacramento firm paid the U.S. Government $3.3 million to settle allegations the company overcharged on contracts for missile, space and other defense contracts.
U.S. Attorney Benjamin Wagner announced Wednesday that Aerojet and their parent company GenCorp Inc. settled charges they fraudulently included certain costs in calculating rates.
Around 92% of Aerojet’s sales are government customers. There was an investigation by various military units that found Aerojet improperly added costs to their contracts in an effort to help fight off takeover bids in 2004 and 2006.
“This settlement makes clear that contractors will not be permitted to overcharge the government under defense contracts,” said U.S. Attorney Wagner.
Aerojet is based in Rancho Cordova; they provide both solid rocket motors and liquid rocket engines, in addition to motors, thrusters and other propulsion devices.Copyright © 2014, The Baltimore Sun