DRI Relays Inc. to Pay $15.7 Million Over Alleged False Claims Violations

Key Takeaways

• Settlement Amount: DRI Relays Inc. will pay $15.7 million to settle False Claims Act allegations related to supplying military parts that failed to meet required specifications.
• Background: The case involves parts sold to the Department of Defense (DoD) from 2015 to 2021, which did not undergo the necessary testing to be classified as military-grade.
• Initial Disclosure: TEC, DRI's parent company, disclosed testing failures to the DoD in 2011, but the issue resurfaced in subsequent years.
• DOJ’s Statement: Acting Assistant Attorney General Yaakov M. Roth emphasized the importance of contractors complying with military specifications to ensure operational readiness and safety.
• Military Supply Chain Integrity: Investigators from the DoD and Army Criminal Investigation Division (CID) stressed the critical need for compliance to maintain military safety and warfighting capabilities.

Deep Dive

When you think about the equipment that keeps our military running smoothly, you might imagine high-tech gear, advanced weaponry, and well-oiled machinery. What’s often less visible, though, are the parts that make all of this work—like electrical relays and sockets. DRI Relays Inc. (DRI), a subsidiary of TE Connectivity Corporation (TEC), has found itself in the spotlight over a failure to meet the very standards that keep those parts dependable for our armed forces. The company has agreed to pay $15.7 million to settle allegations under the False Claims Act, after it was accused of selling military parts that didn’t meet the required specifications.

This all started back in 2011 when TEC, the parent company of DRI, flagged a serious issue to the Department of Defense (DoD)—certain military-grade relays and sockets had not undergone the proper testing. It was a mistake, one that TEC disclosed and worked with the DoD to investigate. However, despite the company’s transparency back then, the issue resurfaced years later.

Between 2015 and 2021, DRI continued to invoice the DoD for parts that were supposed to meet military specifications. The problem? Those parts didn’t pass the required testing to actually be classified as “military grade,” even though the company billed the DoD as if they did.

This isn’t just about paperwork and compliance; it’s about the safety and readiness of our military. Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division made it clear, “It is essential to the safety and operational readiness of our military that contractors comply with applicable military specifications. We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet their contract obligations.”

The settlement serves as a reminder that the integrity of the military supply chain isn’t something to be taken lightly. Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, pointed out the bigger picture, “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 investigating allegations of contractors failing to meet testing protocols and disclosing product deficiencies.”

And let’s not forget the real-world impact this can have. Keith K. Kelly, Special Agent in Charge of the Army CID Fraud Field Office, added a sobering thought, “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.”

When companies fail to meet agreed-upon standards, the ripple effect can endanger not only the military’s operational capabilities but also their relationships with government entities. For organizations working with the Department of Defense and other federal agencies, this settlement demonstrates the importance of strict adherence to testing protocols and specifications. In an environment where national security is at stake, the cost of non-compliance is not just financial, it’s a matter of trust and operational integrity.

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