General Dynamics Ordnance and Tactical Systems, Inc. (GD-OTS) has agreed to pay $838,125 to settle civil allegations related to phosphate procedure compliance issues in several Department of Army contracts. The United States Attorney’s Office for the Middle District of Pennsylvania announced the settlement.
United States Attorney Brian D. Miller stated that GD-OTS voluntarily disclosed that, from June 1, 2019, to April 8, 2021, the company submitted payment vouchers and documents for producing 60mm, 81mm, and 120mm shell bodies that did not undergo phosphate testing as frequently as required by contract terms. The disclosure included activities both as successor in interest to Medico Industries and as owner of GD-OTS-WB.
After identifying the issue, GD-OTS took corrective action and reported the matter to government contracting officials. “After it discovered the problems, GD-OTS took prompt corrective action and disclosed the matter to United States government contracting personnel,” said Miller.
The investigation was conducted by the Defense Criminal Investigative Service (DCIS), Department of the Army Criminal Investigation Division (Army CID), Assistant U.S. Attorney Tamara Haken, and the Affirmative Civil Enforcement Unit of the United States Attorney’s Office for the Middle District of Pennsylvania.
