DOJ announced on Friday that Lockheed Martin Integrated Systems has agreed to pay $27.5 million to settle allegations that the company improperly billed for work done by employees who failed to meet the requirements of Lockheed’s contract:

The alleged labor mischarging occurred on the Rapid Response (CR2) contract and the Strategic Services Sourcing (S3) contract, both issued by the U.S. Army Communication and Electronics Command (CECOM)….The purpose of the CR2 and S3 contracts is to provide rapid access to products and services to be provided to the Army in Iraq and Afghanistan….LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to the United States at the rates of more qualified employees.  The overbilling allegedly resulted in greater profit for LMIS.

Read the entire DOJ press release, “Defense Contractor Agrees To Pay $27.5 Million To Settle Overbilling Allegations”