W International LLC and Precision Metal Equipment Handling LLC, each based in Michigan; W International SC LLC, based in South Carolina; and Edward Walker, chief executive officer of W International LLC and W International SC LLC, were accused of knowingly submitting inflated claims for weld tables used in military applications. The settlement resolves allegations brought under the False Claims Act; the defendants did not admit liability.

Attempts by ENR to seek comment from the accused contractors were unsuccessful.  

The companies were engaged in industrial welding and metal fabrication, with Precision Metal Equipment Handling manufacturing weld tables supplied to W International SC, according to the Justice Dept.

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In fabrication shops, weld tables are foundational fixtures used to position, hold and align steel components during welding and assembly, making them basic but essential production equipment in heavy manufacturing environments.

Federal officials said contractors are required to bill only allowable costs under defense agreements. “Contractors and subcontractors are expected to charge no more than authorized under their contracts with the military,” said Assistant Attorney General Brett A. Shumate of the Justice Dept’s Civil Division in a statement.

Funding for that work was provided through the Defense Production Act under a U.S. Air Force Technology Investment Agreement, as well as through supplier development funds connected to a Navy submarine-construction contract with General Dynamics Electric Boat, which leads construction of the Navy’s Columbia- and Virginia-class submarines, according to the Justice Dept.

The case comes as the Navy continues efforts to expand its industrial base to support shipbuilding programs, including initiatives to strengthen supplier capacity, modernize production processes and address workforce shortages across fabrication and manufacturing trades.

A recent report from the U.S. Government Accountability Office found that Navy shipbuilding programs face persistent supplier delays, workforce shortages and infrastructure constraints, and that none of the seven shipbuilders it reviewed were positioned to meet delivery goals under current conditions, as the Navy seeks to accelerate submarine delivery schedules.

Naval Criminal Investigative Service officials said fraud involving procurement of critical materials can undermine those efforts. 

“Contractors who overcharge betray the public’s trust and undermine this critical mission,” Greg Gross, special agent in charge of the agency’s economic crimes field office, said.

The settlement stems from a whistleblower lawsuit filed under the False Claims Act, which allows private individuals to bring claims on behalf of the federal government. The whistleblower, identified as a former employee of W International SC, will receive approximately $1.86 million as part of the settlement.

The case was handled by the Justice Dept’s Civil Division, the U.S. Attorney’s Office for the District of South Carolina, the Naval Criminal Investigative Service, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.

The lawsuit, filed in U.S. District Court for the District of South Carolina, remains an allegation-based resolution only; defendants admitted no liability.