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ULA settles lawsuit that said it defrauded government of $90 million

ULA has settled a lawsuit with a whistleblower who claimed the company had defrauded the federal government of at least $90 million by overbilling employee work hours.

Unlike the commercial marketplace where prices of goods and services are determined by market forces including competition, sellers in the aerospace industry face little or no competition and contract pricing is based largely on a contractor’s estimated costs, the lawsuit says.

ULA charged the government tens of millions of dollars for work that was never performed and inflated the estimated labor hours including the time required to buy parts and materials from vendors, the lawsuit says.

ULA retaliated against Scott [the whistleblower] by forcing him out of the company after he revealed the alleged illegal activities. ULA officials placed a camera above his desk, monitored and questioned his cell phone and computer use, and suggested he violated the law or engaged in improper bidding practices himself, the lawsuit says.

ULA used a system called the Keith Crohn model that creates a grid using the cost of equipment to reach an employee cost. A labor value was placed on the grid for every item ordered through the company’s purchasing department. For example, any item that cost between $1 and $1,000 would be assigned a labor value of 8 hours. It didn’t matter what part it was, the lawsuit said. The U.S. bans arbitrary cost estimates when actual data is available that establishes the cost.

The first paragraph of the quote above actually describes the bad deal that the Air Force made with ULA back in the early 2000s, giving the company a monopoly on launches while subsidizing it to the tune of $1 billion per year. That deal is now dead, and ULA is instead forced to compete with SpaceX (and soon others I hope) for launch contracts. Not surprisingly, their prices have dropped considerably.

Conscious Choice cover

Now available in hardback and paperback as well as ebook!

 

From the press release: In this ground-breaking new history of early America, historian Robert Zimmerman not only exposes the lie behind The New York Times 1619 Project that falsely claims slavery is central to the history of the United States, he also provides profound lessons about the nature of human societies, lessons important for Americans today as well as for all future settlers on Mars and elsewhere in space.

 
Conscious Choice: The origins of slavery in America and why it matters today and for our future in outer space, is a riveting page-turning story that documents how slavery slowly became pervasive in the southern British colonies of North America, colonies founded by a people and culture that not only did not allow slavery but in every way were hostile to the practice.  
Conscious Choice does more however. In telling the tragic history of the Virginia colony and the rise of slavery there, Zimmerman lays out the proper path for creating healthy societies in places like the Moon and Mars.

 

“Zimmerman’s ground-breaking history provides every future generation the basic framework for establishing new societies on other worlds. We would be wise to heed what he says.” —Robert Zubrin, founder of founder of the Mars Society.

 

All editions are available at Amazon, Barnes & Noble, and all book vendors, with the ebook priced at $5.99 before discount. The ebook can also be purchased direct from my ebook publisher, ebookit, in which case you don't support the big tech companies and I get a bigger cut much sooner.

 

Autographed printed copies are also available at discount directly from me (hardback $24.95; paperback $14.95; Shipping cost for either: $5.00). Just email me at zimmerman @ nasw dot org.

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