DRI Relays Inc. (DRI), a subsidiary of TE Connectivity Corporation (TEC), has agreed to pay $15.7 million to resolve allegations that it violated the False Claims Act by supplying military parts that did not meet military specifications, the Justice Department announced today.
TEC acquired DRI in October 2020. DRI manufactures electrical relays and sockets for numerous military platforms and has manufacturing locations in Long Island, New York, and Bangalore, India. In January 2011, TEC disclosed to the Department of Defense that DRI had not conducted certain required tests on MIL-PRF-83536 relays and MIL-DTL-12883 sockets, and cooperated with the government’s investigation. The United States subsequently alleged that between 2015 and 2021, under various Department of Defense (DoD) contracts and subcontracts, DRI invoiced for military grade electrical relays and sockets when it knew those parts had not met the testing requirements to be deemed military grade.
“It is essential to the safety and operational readiness of our military that contractors comply with applicable military specifications,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet their contract obligations.”
“Maintaining the integrity of the U.S. Department of Defense supply chain is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “The DoD expects its suppliers to adhere to contract specifications and perform required testing on products sold to the U.S. military. We are committed to working with our law enforcement partners to investigate allegations of contractors failing to meet testing protocols and disclose product deficiencies.”
“This settlement demonstrates the resolve of the Department of the Army Criminal Investigation Division (Army CID) and our law enforcement partners to ensure the integrity of the equipment and materiel procured or used by the United States Army,” said Special Agent in Charge Keith K. Kelly of the Department of the Army CID Fraud Field Office. “Failures to adhere to established standards when providing military parts can place our Soldiers at significant risk and adversely impact the Army’s warfighting capabilities.”
This matter was handled by Senior Trial Counsel Art J. Coulter of the Civil Division’s Commercial Litigation Branch, Fraud Section. DCIS, Army CID, and the Defense Contract Audit Agency assisted in this investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.