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NEWS | June 23, 2020

Legal Settlement for Substandard Steel Components

By DCAA Staff Writer

The Department of Justice announced that Bradken Inc. paid $10,896,924 to resolve allegations that they produced and sold substandard steel components for installation on U.S. Navy vessels.  The United States alleged that a Bradken employee knowingly falsified test results to conceal the fact that the components did not meet the Navy’s specifications.  The United States further contended that Bradken invoiced shipbuilders for the steel parts as if they were made to the demanding military specification when they were not, causing the shipbuilders to invoice the Navy for defective parts.

This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Washington, Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency. 

The case was supported by DCAA Investigative Support Auditor Christy Donahue and Supervisory Auditor Mark Saunders,.  Christy was instrumental in analyzing cost records, manual test cards, input in testing databases, military specification attributes and certifications, and deciphering the cost allocation in the Earned Value Management System.

Read the Department of Justice press release here.