Navy Ship Manufacturer Pays $800k to Settle FCA Case Involving Substandard Valves
When it comes to the safety of our military, there is no room for shortcuts. Austal USA LLC, a shipbuilder out of Mobile, Alabama, crossed that line by allegedly supplying the military with “butterfly valves” that did not meet military grade standards. Butterfly valves are quarter-turn valves that rotate to control the flow of fluids in pipelines, the failure of which could lead to leaks in a ship’s hull. Austal recently agreed to pay over $800,000 to settle a False Claims Act (FCA) case alleging it invoiced the government for non-military grade butterfly valves installed on five Littoral Combat ships.
This might sound like a technical hiccup, but the stakes are high. The Navy relies on contractors to provide equipment that can withstand the harshest conditions, ensuring Navy ships are designed and built at the highest standards. As Principal Deputy Assistant Attorney General Brian M. Boynton put it, “It is essential to the safety and operational readiness of our Navy fleet that contractors comply with applicable military specifications.”
The truth is, cutting corners in manufacturing isn’t just bad business—it’s dangerous. The U.S. Attorney for the Southern District of Mississippi, Todd W. Gee, didn’t mince words when he said, “We cannot and will not tolerate companies who cut corners and misrepresent the products they provide to our military.” When a company puts profit before safety, it is the service members and those they are protecting who are the ones at risk.
It’s easy to overlook the impact that a single faulty part can have, but as Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Service (DCIS) explained, “Supplying nonconforming parts to the Department of Defense compromises military systems and potentially endangers the lives of U.S servicemembers.” As Special Agent in Charge Greg Gross of the Navy Criminal Investigative Service (NCIS) stated, “Product substitution risks degrading warfighter capability and wastes U.S. taxpayer dollars.”
So, what’s the takeaway? If you see something, say something. Whether you are working on a production line or in a procurement office, you have a responsibility to speak up if something does not seem right. It affects more than just the machine, or workplace itself. One wrong piece could be the butterfly effect to a bigger problem for everyone else.
If you believe to have information that violates the False Claims Act and would like to speak to an experienced member of the Constantine Cannon whistleblower team, please do not hesitate to contact us for a free and confidential consultation. And if you’d like to learn more about the steps to becoming a whistleblower, download our ebook.