|
THE DOJ AND USCG PAID THE DEFENDANTS
In a civil fraud lawsuit settlement, the DOJ agreed to pay to the defendant almost twice the normal or "anticipated" maintenance "man-hour" rate to fix the defendant's own engine defects.
The defective engines required almost 10 times the overhauls anticipated by the original prime contract. Internal USCG reports state that the engines had to be overhauled 9.41 times as often as originally contracted for ! ( = $ x 10 ) In order to obtain final settlement approval, the negotiated settlement's "Cost Per Overhaul" was deceivingly represented as about half of the USCG's in-house cost to overhaul. Shockingly, this was not only the wrong cost to use (it should have been the "industry's standard "costs-to-overhaul"), it was twice the "man-hour" rate originally contracted for, anticipated and industry-standard, at that time. ( = $ x 10 x 2 ) The USCG used public bid responses to misrepresent and justify its calculations. Concurrently, their own internal USCG reports repeatedly acknowledged that the Defendant was the "SOLE SOURCE" supplier of the engine and its repair parts and that the defects were in the design and manufacturing process and a third-party overhaul house could not fix this. The DOJ and USCG both knew these numbers to be true and did it anyway. What was labeled and originally disclosed to the FBI as fraudulently hidden defects was relabeled as a "Product Improvement Program" and later covertly folded into the negotiated 6-year, "Power-By-The-Hour" maintenance, repair and overhaul contract, at excessive prices and frequency. It is the author's belief that this is still going on today.
|
|
"DEMANDS "Wherefore, Plaintiffs demand: "1. That Defendants be required to pay to Plaintiffs the sum of $10,000 plus 3 times the excess of costs of engines actually required on account of defective performance over costs contractually guaranteed, said excess being $360,000,000. EMPHASIS ADDED: 3 X $360,000,000 = $1,080,000,000 + FINES. "2.That, in addition, Defendants be required to pay to Plaintiffs 3 times the excess of costs of spare parts and services actually required on account of Defendants' failure to comply with contractual obligations or failure to disclose non compliance over costs actually contemplated by contract, said excess being unknown but estimated as equal to excess engine costs. EMPHASIS ADDED: SEE COLUMNS 3 & 4 IN LAST LINE IN TABLE ABOVE !
"3.In the alternative, that Defendants be required to pay Plaintiffs $10,000 plus 3 times the excess cost of re-engining all contracted aircraft plus 3 time the excess cost of spare parts and services plus 3 times the excess cost of interim maintenance and replacement and services." EMPHASIS ADDED: SEE COLUMNS 3 & 4 IN LAST LINE IN TABLE ABOVE !
|