Company to pay $1 million settlement for Air Force contracts awarded while ineligible

Wright-Patterson Air Force Base employees are among those affected by Congress when legislators continue to pass temporary funding measures, local experts say. STAFF

Wright-Patterson Air Force Base employees are among those affected by Congress when legislators continue to pass temporary funding measures, local experts say. STAFF
Local News
By Kspicker
July 28, 2020
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An oil equipment supplier agreed to pay a $1 million settlement in connection to three contracts it was awarded through a U.S. Air Force small business program based at Wright-Patterson Air Force Base.

Spectro Scientific is accused of violating the False Claims Act when it participated in the U.S. Air Force Small Business Innovation Research program, according to the U.S. Attorney’s Office. As part of the settlement agreement, Spectro Scientific will pay $1,050,957.

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The SBIR program aims to give small businesses the opportunity to create new technology using federally-funded research and development. To participate, businesses must have less than 500 employees and cannot be owned by a single venture capital company.

Spectro Scientific reportedly self-certified that it met the requirements and was eligible for funding. However, the company became ineligible for the SBIR program when an acquisition resulted in it being majority owned by a single venture capital company while it was awarded the contract, according to the U.S. Attorney’s Office.

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The Massachusetts company was awarded contracts in 2012, 2014 and 2017 while the company wasn’t eligible.

“This office is committed to protecting taxpayer dollars and safeguarding the integrity of these programs so eligible companies receive a fair opportunity to contract with the Air Force,” said U.S. Attorney David M. DeVillers.

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