Mass. defense contractor reaches settlement agreement after allegations of overcharging U.S. Navy


BOSTON (WWLP) – The Justice Department has reached an agreement with a Massachusetts defense contractor after allegations the contractor overcharged the U.S. Navy.

Charles Stark Draper Laboratory, Inc. (Draper), a Cambridge-based non-profit research company and defense contractor, will pay nearly $3.5 million after charges that it improperly overcharged U.S. Navy contracts.

The settlement resolves allegations that Draper improperly overcharged the government under federal acquisition regulations for certain overhead costs and lacked documentation to justify the costs.

“Contractors responsible for supplying and supporting our armed forces are required to follow many rules designed to protect both our military and the taxpayers,” said Acting United States Attorney Nathaniel R. Mendell. “Our office monitors government contractors and – where appropriate – we will hold accountable those who fail to operate within the rules. This is our way of making sure taxpayers can trust that their money is going toward legitimate government-supported purposes and not overcharges.”

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