A former NASA aluminum manufacturer recently agreed to pay $46 million to several customers, including the space agency, to resolve criminal charges and civil claims against the company
Share to twitterWorkers examine part of the Taurus XL rocket as it is assembled for the 2011 Glory mission.A former NASA aluminum manufacturer recently agreed to pay $46 million to several customers, including the space agency, following a Department of Justice investigation. The company provided aluminum used in two failed NASA missions in 2009 and 2011, although liability in those cases has not been determined.
"The SPI employees generally engaged in these practices to conceal the inconsistent quality of aluminum extrusions produced by SPI, avoid the costly scrapping of metal and accompanying production delays, improve SPI’s and SEI's [parent company Sapa Extrusions Inc.] profits, and receive bonuses that were calculated in part based on a production metric," DOJ stated.
The company pled guilty to one count of mail fraud, and also entered into a deferred prosecution agreement related to criminal information that charges the company with mail fraud. The plea agreement is scheduled to be held May 13. It also agreed to pay $34.6 million in relation to a civil settlement, for"causing a government contractor to invoice MDA and NASA for aluminum extrusions that did not comply with contract specifications," the DOJ stated.
NASA further claims that SPI out-of-specification parts led to the failure of the 2009 Orbiting Carbon Observatory and 2011 Glory launches and subsequent loss of the missions, but SPI disputes that position, DOJ added. NASA's launch services program performed a technical investigation of the failures that eventually involved NASA's Office of the Inspector General, and the DOJ.
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