Defense contractor Lockheed Martin Corporation broke federal law when it used money from the federal government to lobby for more federal deals. But the penalty for this misuse of taxpayer dollars doesn’t amount to much punishment when weighed against the kinds of contracts Lockheed Martin has received.

Lockheed Martin operates Sandia National Laboratories, one of the nation’s leading nuclear research facilities. It has had this responsibility since 1993, yet, in spite of its three-decade run of managing that operation, Lockheed officials decided to use some of the federal contractor funding to lobby Congress from 2008 to 2012 to get a more lucrative deal.

While it did not receive the kind of contract it hoped for, Lockheed Martin came away with a two year non-competitive extension worth $7.7 billion.

The Department of Justice subsequently discovered that Lockheed Martin’s actions had violated the Byrd Amendment, which prohibits the use of federal funds for lobbying. The fine Lockheed got slapped with—the price it paid for breaking the law in order to land that $7.7 billion contract extension—was $4.79 million. Not too bad a deal.

-Noel Brinkerhoff

To Learn More:

Lockheed Martin Unit to Pay $4.7 Million to Settle False Claims Charge (Corporate Crime Reporter)

Settlement Agreement (NukeWatch.org) (pdf)

Sandia Corporation Agrees to Pay $4.7 Million to Resolve Allegations Related to Lobbying Activities (U.S. Department of Justice)

Lockheed Used Taxpayer Money to Lobby for more Taxpayer Money (by Noel Brinkerhoff, AllGov)