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Defense Suppliers Forced Out of Fed Business Under DOJ Settlement

June 21, 2019, 2:09 PM

Liberty Air Parts Inc. and U.S. Supply Corp. agreed to pay the U.S. government $159,391 to settle a False Claims Act suit alleging a scheme to provide inferior bolts, rings, knobs, and rivets to the Defense Logistics Agency.

The companies also agreed to cease doing business with the federal government in exchange for the Justice Department dropping the case, the agreement says.

The DOJ’s complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, had accused the companies of proposing to furnish non-surplus parts while actually providing cheaper surplus parts to obtain a competitive advantage over ...