Government & Politics  October 27, 2014

First RF pays $10M in settlement over inflated Army contract pricing

UPDATED: BOULDER – First RF Corp., an antenna and radio system company based in Boulder, has agreed to pay $10 million to settle allegations that it violated the False Claims Act by submitting inflated claims for electronic warfare antennas sold to the U.S. Army to combat improvised explosive devices.

The settlement announced Monday by the Justice Department resolves the United States’ investigation into First RF’s conduct in connection with a 2005 Army contract for the sale of electronic warfare antennas that were used in Iraq.

The United States alleged that First RF knowingly submitted false data to the Army that misrepresented First RF’s cost to manufacture the antennas, inflating the price for the antennas and the payments First RF received for them.

SPONSORED CONTENT

Solar Operations and Maintenance for Commercial Properties

One key qualification to consider when selecting a solar partner to install your system is whether they have an Operations and Maintenance (O&M) or service department. Since solar is a long-term asset with an expected lifecycle of 30 plus years, ongoing O&M should be considered up front. A trusted O&M partner will maximize your system’s energy output and therefor the return on your investment.

In a statement Monday morning, U.S. Attorney John Walsh, representing the District of Colorado said, “When defense contractors supply our armed forces with equipment, those contractors must be absolutely truthful in their price negotiations. It is no excuse for dishonesty that the military equipment was urgently needed. Defense contractors that fail to act with integrity in such negotiations should know that they will face consequences.”

But First RF disputed the federal government’s characterization of the case.

In a statement released late Monday, First RF Corp. said it “strongly disputed the Department of Justice’s position, but cooperated extensively in the government’s investigation, and provided DOJ with substantial evidence in support of the company’s position.

“Despite that evidence, DOJ’s lawyers and auditors continued to assert that First RF was liable. First RF ultimately made a determination that it was better to pay the Department of Justice a settlement amount, rather than spending the next four, five or even 10 years fighting the matter in the courts and spending millions of dollars on that legal battle. Instead, the company chose to settle, eliminate the cost and distraction of possible litigation, and focus the energies and effort of First RF’s talented staff on developing and fielding new technologies for our customers.”

The claims resolved by the settlement are allegations only, and there has been no determination of liability, according to the Justice Department.

First RF relies heavily on government grants and contracts to research, development and test its equipment that often is sold to the military. A company spokesman said the settlement would not affect ongoing contracts or the many Small Business Innovation Research grants the company has received.

 

 

UPDATED: BOULDER – First RF Corp., an antenna and radio system company based in Boulder, has agreed to pay $10 million to settle allegations that it violated the False Claims Act by submitting inflated claims for electronic warfare antennas sold to the U.S. Army to combat improvised explosive devices.

The settlement announced Monday by the Justice Department resolves the United States’ investigation into First RF’s conduct in connection with a 2005 Army contract for the sale of electronic warfare antennas that were used in Iraq.

The United States alleged that First RF knowingly submitted false data to the Army that misrepresented First…

Sign up for BizWest Daily Alerts