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Archive for Tuesday, July 17, 2007

Boeing to pay $1M to settle billing claims

July 17, 2007

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— The Boeing Co. has agreed to pay more than $1 million to the federal government to settle allegations that it overbilled for materials used in installing new KC-135 aircraft engines, the U.S. attorney's office in Wichita announced Monday.

The settlement stems from an investigation into payment requests that Boeing made from 1998 to 2003.

In a news release, U.S. Attorney Eric Melgren said the government alleged that Boeing double-billed for materials used in modernizing KC-135 Stratotankers and RC-135 reconnaissance aircraft. The materials included nuts, bolts, rivets and fasteners.

Prosecutors alleged that Boeing charged for the materials even though those costs were included in the company's contract with the government.

Boeing claimed the contract allowed the transfer of costs, so the billing was not done improperly.

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