Case: 1:06-cv-00013-RLF-GWC Document #: 36 Filed: 05/26/2009 Page 1 of 57

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF THE VIRGIN ISLANDS
ST. CROIX DIVISION

UNITED STATES OF AMERICA §

Ex rel. SYLVESTER DAVIS, §
Individually §
§ CIVIL ACTION NO. 2006-0013
Plaintiffs, §
§
vs. §
§ SECOND AMENDED COMPLAINT
§ PURSUANT TO 31 U.S.C. §§ 3729-3732,
§ FEDERAL FALSE CLAIMS ACT
§
§
LOCKHEED MARTIN CORPORATION; §
§ JURY TRIAL DEMAND
§
Defendant. §

PLAINTIFF’S SECOND AMENDED COMPLAINT

PURSUANT TO 31 U.S.C. §§ 3729-3732,
FEDERAL FALSE CLAIMS ACT

It is critically important that manufacturers perform all required testing of parts

for equipment being used by our military personnel. . . . The U.S. Attorney’s
Office takes these matters very seriously and we will do all that we can to
ensure the safety of the men and women in the military.

John B. Hughes, Chief of the Civil Division, U.S. Attorney’s Office in Connecticut, quoted in
March 25, 2009 U.S. Department of Justice press release, “Sikorsky Aircraft Pays $2.9
Million to Settle False Claims Act Allegations,” available at
http://www.usdoj.gov/opa/pr/2009/March/09-civ-273.html, attached hereto as Exhibit O.
“The United States alleged that from 1991 to 2006, Sikorsky knowingly installed armored
plates . . . that had not been ballistically tested as required under the contract.” Id. "This
settlement sends a message that fraud, especially when it concerns the safety of our men
and women in uniform, cannot and will not be tolerated in Government contracts," said
Michael F. Hertz, Acting Assistant Attorney General for the Department of Justice’s Civil
Division. "As demonstrated here, the Department . . .[is] committed to rooting out such
fraud and prosecuting it." Id. 1

1 See also, e.g., “Northrop Agrees to Pay $325 Million to Settle Suit,” by Andy Pasztor, Wall Street Journal,
April 3, 2009, available at http://online.wsj.com/article/SB123871451033784579.html, attached hereto as

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The United States of America, by and through qui tam Relator, Sylvester Davis,

brings this action under 31 U.S.C. §§ 3729-3732 (the “False Claims Act”) to recover all

damages, penalties and other remedies established by the False Claims Act on behalf of

the United States and himself and would show the following:

PARTIES

1. Relator, Sylvester Davis (“Davis”), is an individual citizen of the United States

and a resident of the State of Texas. He was an employee of Defendant Lockheed Martin

Corporation at all relevant times.

2. Defendant Lockheed Martin Corporation (“Lockheed” or “Defendant”) is a

Maryland corporation with its principal place of business at 6801 Rockledge Drive,

Bethesda, MD 20817. More relevant to the events herein, is the Lockheed Martin

Corporation offices located at 1 Lockheed Street, Fort Worth, Texas 76108. Through such

offices, the relevant Joint Strike Force Program and other similar programs were managed

in relevant part. The software development process, its quality control and its compliance

evaluations for the F-35 and other programs occurred under the auspices of these offices.

Lockheed’s agent for service of process is Frances J. Frizzell, 6801 Rockledge Drive,

Bethesda, MD 20817.

JURISDICTION AND VENUE

3. Jurisdiction and venue are proper in this Court for the following reasons:

a. Jurisdiction for this Court exists pursuant to the False Claims Act (31 U.S.C.
§ 3730(b)(1) and 31 U.S.C. § 3732(a)), because Relator’s claims seek

Exhibit P: “In a release Thursday [April 2, 2009], the Justice Department said that investigators concluded that
between 1992 and 2002, TRW [which was acquired by Northrop in 2002] ‘failed to properly test parts’ and
‘made misrepresentations’ to the government about their reliability.”

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remedies on behalf of the United States for Defendant’s multiple violations of

31 U.S.C. § 3729, some of which occurred in the United States Virgin
Islands, and because the Defendant transacts, or was contemplated to
transact, substantial business within the United States Virgin Islands.

b. Venue exists in the United States Virgin Islands pursuant to 31 U.S.C. §

3730(b)(1), because the Defendant is qualified to do business in the United
States Virgin Islands, and it has transacted, or was contemplated to transact,
substantial business within the United States Virgin Islands.

GENERAL BACKGROUND

Lockheed Martin Corporation

4. Lockheed engages in all aspects of research, design, development,

manufacture, integration, operation, and support of technology systems, products, and

services in the United States and internationally. Its aeronautics segment produces military

aircraft, including the relevant F-35 Joint Strike Fighter and the F-16 Fighter, F/A-22 Air

Dominance, Attack and Combat Aircraft, C-130J Tactical Airlift Aircraft, C-5 Airlift Aircraft,

and the F-117 Stealth Fighter. There are a number of acronyms that are utilized

throughout the Complaint and a list of those acronyms and their definitions is attached as

Exhibit A to the Complaint.

5. Defendant’s Electronic Systems segment offers systems for undersea,

shipboard, land and airborne applications. The Electronic Systems’ products include

missiles and fire control systems, air and theater missile defense systems, surface ship and

marine combat systems, anti-submarine and undersea warfare systems, radars, platform

integration systems, homeland security systems, surveillance and reconnaissance systems,

security and information technology (IT) solutions, simulation and training systems, and

post-automation systems. Defendant’s Space Systems segment offers satellites, missile

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systems, both airborne and missile defense technologies, fleet ballistics missiles and

launch services.

6. Defendant’s Integrated Systems and Solutions segment is the relevant

segment in this False Claims Act case. That segment develops, integrates and manages

net-centric solutions. The segment also provides technology in the areas of software and

systems engineering, at the heart of the claims in this case.

7. Defendant’s Information and Technology Services segment provides IT, IT-

related and other technology services; including IT integration and management,

maintenance and modification services, as well as mission and analysis services.

Technology Services also offers engineering, science and information services, research,

development, engineering and science in support of nuclear weapons stewardship and

naval reactor programs.

History and Justification for SEI

8. Recognizing the increasingly critical role software plays in its systems, the

DOD established the Software Engineering Institute to advance the practice of software

engineering and to help ensure software is produced on schedule, on budget and to the

highest quality standards. SEI is a federally funded research and development center

sponsored by the DOD through the Office of the Undersecretary of Defense for Acquisition

and Technology. The SEI management contract was competitively awarded to Carnegie

Mellon University in 1984. The organization is staffed by technical and administrative

professionals from government, industry and academia. The SEI mission is to provide

leadership in advancing the practice of software engineering to improve the quality of

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systems that depend on software.

History and Justification for SEAL

9. The Lockheed Martin Software Safety Working Group, established during the

Concept Development Phase (CDP) and including representatives from U.S. and U.K. software

suppliers, defined the software safety certification process known in the Air System Software

Development Plan (“AS SDP”) as Safety Evidence Assurance Levels (SEALs) along with the

corresponding process elements to achieve the required safety assurance. SEAL requirements

were added to the AS SDP in version 2 on April 24, 2002. SEAL describes the category

of required evidence needed to assure stakeholders that the system is sufficiently safe.

SEALs are for components that collaborate to fulfill requirements (e.g., architecture,

design, coding, testing). Therefore, the lower the SEAL level the more activities you have to

perform and documentation you have to create in order to provide Evidence Assurance that

you have appropriately mitigated the risks.

10. SEAL can trace it roots to the DO-178B and is related to it in both definition

and purpose. Section 2.2, of DO-178B defines the software level. The software level,

(section 2.2.2) is either:

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Level Condition Effect of Anomalous Behavior

A Catastrophic failure “... prevent continued safe flight
and
landing...”

B Hazardous/severe failure “... serious or potentially fatal

injuries
to a small number of … occupants
...”
C Major failure “... discomfort to occupants,
possibly
including injury...”

D Minor failure “... some inconvenience to

occupants...”
E None “... no effect on aircraft operational
capability or pilot workload...”

11. The “Condition” indicated in the table is the result that will occur if a “Level” x

item is not mitigated. For example, if a Level A risk is not mitigated it will cause

“Catastrophic failure” such as prevention of continued safe flight and landing.

12. You could also make a convincing argument that the SEAL requirements as

described in the AS SDP satisfy the requirements of MIL STD 882D as it relates system

safety requirements discussed in section 4. See Exhibit B, MIL Standard 882D.

13. Either way the necessity of the practices described in Appendix C of the AS

SDP cannot be disputed. Just as SEI has replaced DoD-Std-2167 as it relates to the

JSF program, SEAL as described in the AS SDP is a reformatted restatement of

concepts and principles of DO-178B/MIL STD 882D. Therefore saying that SEAL is

not necessary for a military aircraft would be the equivalent of saying that DO-178B

is not necessary for commercial aircraft. As described in the Joint Strike Fighter (JSF)

Air System (AS) Software Development Plan (SDP) SEALs are derived from the AS Hazard

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Risk Index (HRI). The HRI determines the SEAL level in the same way that the condition

determines the “Level” in DO-178B. The SEAL 1 description is below:

“C.2.3 SEAL 1
This level of assurance is required for hazards that have a HRI that lies in the range
1 to 3. This range is sometimes referred to as ‘safety critical’. These hazards are
normally under the full control of software. Failure of the software item leads directly
to a hazard’s occurrence. Since the HRI lies in this range, there are additional
activities required in order to ensure that there is the highest level of confidence that
the safety goals have been achieved. “

14. It is important to note that section C.3.2 of the AS SDP states “Software of

different SEALs must not be mixed in the same address space. Architectural design must

ensure that software of different SEALs is kept physically apart, preferably using an

operating system with computer hardware support.” This means that if one application

within the same address space is not following SEAL 1 process; for example, Flight Control

Redundancy Management (FCRM) which resides within the Flight Control System; then the

entire system which includes Flight Control Application, (FCA), and Air Data (ADA) is not

SEAL 1 compliant and vice versa.

15. In other words the SEAL 1 compliance status of another application

residing within the same address space does not alleviate another application from

performing the activities described in the AS SDP to meet SEAL 1 compliance.

The same principle applies to SEI requirements for the same reasons; the applications

reside in the same address space.

16. Compliance to SEI level 4 and SEAL 1 is a two step process. Step 1, is to

define a process in the Software Development Plan (SDP), which if followed would produce

SEI and SEAL 1 compliant software. Step 2 is to follow the process while developing the

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software and generate the documents which will validate that the process defined in the

SDP was followed. Documents include but are not limited to Software Product Evaluation

(SPE) data, unit and formal test cases and reports, and metrics. If step 1 is not performed,

step 2 is irrelevant.

17. As it relates to this amended complaint it is important to note that lack of

compliance to SEI and SEAL 1 standards is not merely alleged, it is a documented and

admitted fact by Lockheed Martin. On two occasions; April 6, 2004 and July 28, 2004; the

Lockheed Martin Software Management Team (SMT) determined that the FCA IPT

software was not being developed in an SEI and SEAL 1 compliant manner. See Exhibit

M, April 6, 2004 Rejection, and Exhibit N, July 28, 2004 Rejection. The software crash

of the System Integrity Manager (SIM) software which occurred November 3, 2004 also

documents their non-compliance.

18. In their December 17th 1999 press release announcing the Lockheed Martin

Tactical Aircraft Systems earning SEI level 4 status, Lockheed Martin stated

"Earning Level 4 validates to our customers that our processes are

operating at a high level and that we have an infrastructure in place that
ensures continuous improvement in software development," said Charla K.
Wise, vice president of Product Engineering. "To our Joint Strike Fighter
(JSF) customers, earning Level 4 assures them that we have the ability to
handle the large software tasks that will be involved with the JSF as it moves
from the Concept Demonstration to the Engineering and Manufacturing
Development phase."

19. The Defendant has published guidelines for any Software developed by

Lockheed Martin Aeronautics Company reflecting specific requirements for Software

development:

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“All Lockheed Martin developed software must meet the specific

requirements of the Lockheed Martin Aeronautics Company standard
software development process, as defined in CBM 4004 and PM 4001
with approved tailoring. The LM Aero Ft. Worth software development
process was assessed at SEI CMM Level 4 on December 17, 1999.
Additionally all JSF software must meet the requirements defined for their
associated Software Evidence Assurance Level as defined in the Air
System SDP. “

All software relevant to this Qui Tam is characterized as SEAL 1 (Safety Critical, the

most stringent characterization)."

20. In a presentation whose purpose was to communicate to all of parts of

Lockheed Martin Aeronautics that had been merged into the organization made May 1,

2002 Philip C. Gould, Senior Manager, Software Process Branch, Software Engineering

Center, Lockheed Martin Aeronautics Company announced the decision to standardize the

division on the existing Fort Worth Software development process which consist of:

o Core Business Manual (CBM) 4004 – contract document

o Process Manual (PM) 4001 – working-level details
o Associated guidebooks, training, etc.

The rationale given in the presentation was “process known to produce Level 4 behavior

when properly implemented.” See Exhibit C, One Company, One Team …Coast to

Coast.

21. As part of the stated Single Process Initiative (SPI) he indicated that all

existing US military contracts would be modified to invoke CBM 4004 and indicates that

CBM 4004 is a high level document designed to replace Dod-Std-2167A.

22. It is important to note that as Phillip had previously indicated in his

presentation, PM 4001, which is the source of SEI level 4, provides the working level details

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for CBM 4004. This establishes a direct contractual link between SEI and the JSF

program.

23. In a subsequent chart intended to address issues/concerns from the non-Fort

Worth Division representatives with being required to comply with SEI, he recounts what

would be excuses used by the Defendants to not comply which the same requirements that

the company is assigning to the entire company:

• “A problem? – A little, at first

o “We’ve never done it that way before”
o “Our customer’s comfortable with how we operate”
o “What makes you think that you’re right and we were wrong?”
• Answer
o Decision was made to standardize on existing FW process based
on successful Level 4 assessment
ƒ That DOES NOT imply what was “right” or “wrong”
ƒ That DOES NOT imply that anyone was smarter than anyone else
ƒ It DOES establish a common baseline with known desirable results”
24. Later in the presentation Phillip recounts what would be more excuses used

by the Defendants:

• “Some initial reactions

− “But I’ve been doing this for years!”

− “Why do I need to know that?”

− “We don’t have time in our schedule for all of this”

25. By addressing and discounting these excuses when merging companies

within Lockheed Martin as indicated in this presentation, the Defendant acknowledged that

the excuses that would be given for not complying with SEI and SEAL 1 requirements on

the JSF program are not valid and have no merit. It further demonstrates Lockheed Martin’s

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propensity to promote for its own benefit processes and procedures that it was not

following.

26. The District Court is requested to take judicial notice of the Defendant’s vast

experience in military contractor projects and its awareness of the appropriate standards

and protocols by which it is expected to perform services for the benefit of the United

States of America. Further, the District Court is requested to take judicial notice of the

several False Claims Act cases in which this same Defendant has been required to pay

substantial funds for defrauding the United States of America.

OTHER CLAIMS; NOTICE TO THE U.S.

27.. While Relator’s primary focus herein has been upon the Defendant’s FCA

violations regarding the ongoing F-35 Program, Relator has also provided notice, not later

than March 2006, to the DOJ and its associated federal agents and attorneys in this case

about Defendants’ plant-wide failures to develop and test software products according to

required SEI and SEAL I, II and III, where required by contract with the U.S. Relator

disclosed, first internally to Defendant, that it was not performing its software development

and testing obligations for any of its military contracts under the required SEI and SEAL

standards. Defendant, while recognizing Relator with an award for bringing this important

deficiency to the attention of management, conceded the necessity to ensure SEAL

compliance for the F-35 flight controls to address greater risks. See Exhibit D

attached hereto. However, Defendant paid only lip service to the problem and refused to

remedy the past corruption of software in its military contracts, nor did Defendant make the

necessary effort to implement the necessary changes in software development, testing and

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compliance in order to comply with its obligation to the U.S. to ensure that software was

being developed, tested and in compliance with SEI and SEAL I standards on the F-35, F-

22 and other systems requiring such reliability levels for software products. Thus, the

scope of Defendant’s violations, as admitted by Defendant, is broader than the F-35

Program. The national, if not international, defense is now at risk, as a result of the

Defendant’s corrupt software development performance for the F-35 Vehicle Systems.

Other systems, such as the F-35 Mission Systems, have reportedly suffered similar

software issues at various [SEI] safety criticality levels.

Joint Strike Fighter Program

28. The F-35 JSF Program is a joint program with no lead service; that is, it is

staffed by Air Force, Navy and Marine Corp personnel. The Program Executive Officer

position alternates between the Departments of Navy and Air Force, and that person

reports to the Service Acquisition Executive (SAE) of the other service.

JSF Information

29. The Joint Strike Fighter (JSF) Program, formerly the Joint Advanced Strike

Technology (JAST) Program, is the Department of Defense’s focal point for defining

affordable, next generation strike weapon systems for the Navy, Air Force, Marines and a

growing number of U.S. allies, all of whom remain uninformed regarding this corrupt

weapons system. The focus of the program is affordability – reducing the development

cost, production cost and cost of ownership of the JSF family of aircraft. Lockheed is the F-

35 prime contractor, while Northrop Grumman and BAE Systems are principal partners in

the project.

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30. The Joint Strike Fighter is a multi-Service/international cooperation warplane.

The cornerstone of the program is affordability based on a next-generation, multi-role

strike fighter aircraft that will have a 70 to 90 percent commonality factor for all the variants,

significantly reducing manufacturing, support and training costs. First delivery of

operational aircraft was anticipated for fiscal 2008. That delivery did not occur as

promised, due, in large part, to the issues raised in this complaint.

31. During the current Systems Development and Demonstration (SDD) phase

awarded October 26, 2001, the program was supposed to be focused upon developing a

family of strike aircraft that significantly reduces lifecycle cost, while meeting the operational

requirements for the Services. The requirements represent a balanced approach to

affordability, lethality, survivability and supportability. The program will use a phased block

approach that addresses aircraft and weapons integration and provides a validated and

verified air system for the Service Initial Operational Capability requirements.

32. During SDD, the team planned to build a total of twenty-two (22) test aircraft.

Fourteen (14) were proposed to undergo flight testing, seven were to be used for non-

airborne test activities, and one was to be used to evaluate the F-35’s radar signature

[stealth].

33. Final assembly of the F-35 will take place at Defendant’s location in Fort

Worth, Texas. Northrop Grumman Corporation in Palmdale and El Segundo, California will

manufacture the center-fuselage and the aft fuselage, and tails will be manufactured by

BAE systems in Samlesbury, England. Defendant in Fort Worth will manufacture the

forward fuselage and wings.

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34. Flight-testing will be conducted at Fort Worth, Edwards Air Force Base, and

Naval Air Station Patuxent River. Additionally, the STOVL and CV variants will undergo

sea trials aboard American, British and Italian aircraft carriers. First flight of the

Conventional Take-Off and Landing (CTOL) version of the aircraft was scheduled for the

third quarter of 2006.

35. The JSF program is intended to fulfill stated Service needs as follows:

a. U.S. Navy First day of war, survivable strike fighter aircraft to

complement F-A-18E/F;

b. U.S. Air Force Multirole aircraft (primary-air-to-ground) to replace the

F-16 and A-10 and complement the F/A-22;

c. U.S. Marine Corps STOVL aircraft to replace the AV-8B and F/A-18 as

their only strike fighter;

d. United Kingdom Royal Navy & Royal Air Force STOVL aircraft to

replace Sea Harriers & GR.7s as a supersonic strike fighter; and

e. Other Countries Potential JSF customers include current operators of

F-16, F/A-18 and AB-8B.

36. The F-35 Program is managed via various Integrated Product Teams (IPTs).

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Original Project Schedule

37. The original project schedule for the various milestones was as follows:

Table 3-1. FCA SW IPT Software Milestones

Capability/Release Due Date
CTOL Release for Structural Coupling Test 01/2006
CTOL Release for First Flight 03/2006
STOVL Release for Structural Coupling Test 09/2006
STOVL Release for First Flight 05/2007
CTOL Prime Structural Coupling 07/2007
CTOL Prime First Flight 10/2007
CV Release for Structural Coupling Test 08/2008
CV Release for First Flight 11/2008

International Partners

38. The mission of the International Directorate (ID) is to lead the integration of

international participation within the framework of the program office. The core JSF

program is a multi-national cooperative development program originally comprised of nine

(9) partner nations: United States, United Kingdom, Italy, The Netherlands, Turkey,

Australia, Canada, Denmark and Norway.

39. The Department of Defense has placed increasing emphasis on international

armaments cooperation and R&D and acquisition of weapon systems and defense

technology. In further support of this initiative, JSF ID has implemented a Security

Cooperative Participation (SCP) approach with Israel and Singapore. Future opportunities

will be coordinated with the respective international Project offices within the Defense

Security Cooperation Agency, Air Force and Navy to ensure that the USG strategy for

international participation is mutually beneficial to all participants.

40. The cumulative JSF Partnership Participation Cost contributed by the nine

partner nations exceeded $4.525 billion. In that regard, Israel and Singapore have also

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agreed to join the program as Security Cooperation Participants.

41. The cumulative cost/value for the aircraft contemplated under the contract

exceeds $140.8 billion. With this sort of investment, honesty in the Defendant’s rendition of

services for payment by the government is critical, and that critical reliance by the United

States has been misplaced.

Software Process and Document Approval Organizations

42. The False Claims Act Complaint herein concerns the knowing and intentional

concealment of material facts and misrepresentations of material facts by Defendant to the

United States in connection with required standards for (1) software development, (2)

software testing and (3) software development process compliance, all of which has

defrauded the United States out of significant sums of money; likely, in the hundreds of

millions of dollars.

43. The JSF Software Management team reviews and approves all JSF Software

Development Plans (SDPs), reviews monthly metric data to ensure compliance to all

Lockheed Martin and JSF software process requirements. Approval of the SDP is the

representation of Defendant's compliance with all required: (1) software development, (2)

software testing and (3) software development process compliance.

44. The JSF Software Management team in conjunction with AV IPT will review

and approve product SDPs for conformance to JSF-specific software development and

maintenance requirements. Additionally, JSF software quality assurance, configuration

management, system safety, and system security engineering representatives must review

the product-level SDPs for content relating to their disciplines. These reviews will ensure

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that:

a. The necessary additional product-level detail is provided, and the detail is

appropriate for size, type, and intended lifecycle of the development;

b. Any tailoring taken AS SDP is appropriate and supported by rational;

c. The software development approach is properly integrated into the total

program approach, including program management (configuration

management, quality assurance, etc.) and systems engineering specialties

(system safety, system security engineering, etc.); and

d. Overall document quality, including readability and accessibility are

acceptable.

45. A Prime Team SDP is also reviewed and approved by LM-Aero Software

Engineering Process Group (SEPG) except when such requirement has been waived.

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Relevant Organizational Structure for Qui Tam Case

46. The following is a hierarchy visual of the IPTs relevant to this case:

Air System IPTs Hierarchy

Air System

Air Vehicle

Vehicle Systems
WBS 1300

Flight Control Systems

WBS 1330
Systems Engr
And Integration
WBS 1331

Flight Control
Application S/W
WBS 1332

System Integrity
Manger S/W
WBS 1333

Flight Control
Hardware
WBS 13334

AIR SYSTEM ORGANIZATIONAL RESPONSIBILITIES

AIR SYSTEM IPT

47. Air System IPT is comprised of the following IPTs:

a. Air System Integration

b. Air System Engineering

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c. Air System Requirements

d. Air System Logistics

e. Air System Production

48. The air system IPTs that are most relevant to this Qui Tam action include:

a. Air System Integration IPT

. b. Air System Engineering IPT

c. Air System Requirement IPT

49. Air System Integration IPT. It is the mission of the Air System Integration to

establish and execute the framework and forums to accomplish program-wide integration

consistent with program visions statement. In working toward that goal the Air System

Integration team is responsible for ensuring all products and activities of JSF Program

Office (JPO) are integrated/coordinated to achieve an optimum air system solution.

50. Air System Engineering IPT. The Air System Engineering IPT will foster

sound Systems Engineering by the management and coordination of Integrated Technical

Plans, Configuration Control, Measurement of Technical Status and Technical Processes.

In order to complete their mission the Air System Engineering team is responsible for:

a. Ensuring all products and activities are designed and developed in

accordance with sound systems engineering principles;

b. Managing the Air System Software Policy and Practices;

c. Overseeing Product Implementation of specialty Engineering

Disciplines;

d. System Safety, RM, ESOH, System Security, PHM, System

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Integrity, EEE, Survivability;

e. Managing the program, Modeling, Assimilation, Analysis;

f. Establish Program-wide metrics to aid IPT in their tasks;

g. Developing team and individual performance subjected/criteria that

emphasize air system optimization and engineering process.

51. Air System Requirements IPT. Air System Requirements IPT centrally

manages Air System Requirements across the JSF program. The team is the owner of the

Air System Concept of operations, JSF Operational Requirements Document, Leader of the

JSF Operation Advisory Group, and is the owner of the Lethality Pillar. Overall the Air

System Requirements IPT is responsible for;

a. Evaluation Requirements to changes to the Air System Block Plan,

Joint Contract Specification (JCS) and the JSF Operation

Requirement Document.

b. Coordinating Delta SDD Requirements for the Partner JCS;

c. Coordinating Post-SDD Air System Requirements;

d. Leading Requirement Working Group Process;

e. Developing/Managing JSF Science and Technology and Product

Roadmaps;

f. Conducting JSF Air System Operational Capability Assessments;

g. Acting Service Partner Interphase Current Future Requirements;

h. Manage Requirements for the Spiral Development Process.

52. The overall goal of the Air Vehicle is through teaming with the contractor to

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develop, validate, and deliver an affordable operationally effective, operationally suitable,

production ready and sustainable JSF Air Vehicle within SDD cost and schedule for the

warfighter. The Air Vehicle Team accepts the total system performance and integration

responsibility for the JSF Air Vehicle that satisfies SDD production affordability/risk

objectives and satisfies JSF Vehicle performance requirements.

53. The Air Vehicle System Engineering Integration IPT cuts across the Air

Vehicle to ensure integration at all levels. The team is also responsible for the following

functional areas: Environmental Issues; Propulsion Integration; Requirements and

Specialty Engineering; Aerodynamic Performance; Flight Science.

54. Vehicle Systems Organizational Responsibilities. The Vehicle System

IPT is responsible for a wide variety of systems in the air craft such as the Flight Control

System Hardware and Software; Utility Systems (Electrical, Thermal, Hydraulic, Landing

Arresting, Fuel, Fire Protect, Ice Detection, etc.); Onboard Vehicle Systems Processing

Infrastructure (Vehicle Management Computer, Remote I/Os, Operating System); the

Vehicle Systems PHM Area Manager/Software; and the overall propulsion system

integration.

55. Flight Control System Organizational Responsibilities. The Flight

Systems IPT is responsible for all hardware and software required to process and convert

stick and throttle commands into effector (flaperons, ailerons, etc.) commands in order to

maneuver the airplane as commanded by the pilot.

56. System Integrity Manager Organizational Responsibilities. The

System Integrity Manager (SIM) IPT provides fault detection, isolation and annunciation to

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the pilot for both the Flight Control and Air Data. Additional Flight Control Redundancy

Management (FCRM) capabilities included Integrated Cautions and Warnings (ICAWS),

PHM, Crash Survivable Memory Unit (CSMU) Manager, Ground Collision, Avoidance,

System and fault isolation during maintenance operations and ensure flight control systems

integrity prior to flight.

57. SIM IPT designs and develops the FCRM and Flight Control Initiated Built-In-

Test (FCIBIT) Computer Software Configurations Items (CSCIs).

58. FCA SW IPT Organizational Responsibilities. The FCA IPT

generates commands for the Air Vehicle control effectors, lift fan doors, nose wheel

steering, and commanded engine thrust and provides fault tolerant air data, correcting the

raw, sensed air data parameters, and computing the required standard air data parameters

for use by FCS and other Air Vehicle subsystems.

59. The FCA SW IPT designs and develops the Control Law (CLAW) and Air

Data CSCIs.

60. Air Data (ADA) CSCI Overview. The ADA CSCI provides the current state of

the aircraft relative to the surrounding air mass, properties of the surrounding air mass and

the overall health of the Air Data System.

61. The ADA correct the raw air data inputs, monitors the true air data inputs,

selects the best available air data inputs, and calculates the air data output signals.

62. The ADA CSCI primarily interfaces with the four Air Data Sensors (left & right

Multi-Function Probes and left & right Flush Ports) and the two other Flight Control

Applications (FCRM and CLAW). Its outputs are also consumed by the DMC (Display

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Management Computer) for presentation to the pilot.

63. A Multi-Function Probe is mounted on each side of the fuselage. Each probe

supports two sensor packages. The sensors packages proved measured static and total

pressure (Ps & Pt), and measured angle of attack (AOA). These raw Air Data parameters

are affected by various factors, including but not limited to: the placement of the probes on

the airframe, configuration of the air vehicle (open doors, externally loaded stores, etc.),

attitude of the air vehicle with respect to the surrounding air mass, velocities, turns,

rotations, etc. Thus, the raw Air Data parameters must be corrected using empirical data

from wind tunnel testing to obtain the true Air Data inputs. Each package also contains a

heating element. Each package produces a message that is transmitted through the

Vehicle System network to one of the VMCs. The transmitted messages are then Cross-

Channel Data linked to the other two VMCs; thus, each instantiation of the ADA has access

to all four MFP messages during each frame of execution.

64. A Flush Port is mounted on each side of the fuselage. Each port supports two

sensor packages. The sensor packages provide measured static pressure (Ps). This raw

Air Data parameter is affected by various factors, including but not limited to: the placement

of the ports on the airframe, configuration of the air vehicle (open doors, externally loaded

stores, etc.) attitude of the air vehicle with respect to the surrounding air mass, velocities,

turns rotations, etc. Thus, the raw Air Data parameter must be corrected using empirical

data from wind tunnel testing to obtain the true Air data input. Each package also contains

a heating element. Each package produces a message that is transmitted through the

Vehicle System network to one of the VMCs. The transmitted messages are then Cross-

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Channel Data linked to the other two VMCs; thus each instantiation of the ADA has access

to all four FP messages during each frame of execution.

65. The FCRM CSCI provides the attitude, performance and configuration data

needed by the ADA CSCI to perform corrections. It also provides and maintains the DST

(Device Status Table) information to perform the monitoring of the Air Data signals. This

information is required to perform the monitoring of the Air Data signals. This information is

required because the ADA CSCI does not maintain the status of all Air Data System

components from frame to frame of execution. The FCRM CSCI consumes the failure

indications output by the ADA CSCI to maintain the DST.

66. The purpose of the CLAW CSCI is to stabilize the aircraft in all flight regimes

while allowing the pilot to direct the aircraft to achieve mission performance. The CLAW

method of control implements a feedback design using pilot inputs and sensor feedbacks to

compute effector commands. The software computations are inherently physics based

using equations of motion to map the pilot’s commands to aircraft response.

Relator’s Job Title and Responsibilities

67. Relator, until very recent, had the Job Title in the JSF Program of “Software

Lead and Software Product Manager (SPM) for the JSF Flight Control Application (FCA)

Software Integrated Product Team (IPT)”. Relator’s job grade was: Embedded Software

Engineer Senior Staff.

68. Relator’s responsibilities were several. First, Realtor was responsible for

defining a software development process that met the overall objectives of the JSF

program and was compliant with the following documents:

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a. Lockheed Martin PM 4001;

b. Joint Strike Fighter (JSF) Air System Software Development Plan (SDP); and,

c. Safety Evidence Assurance Level (SEAL) 1.

69. Second, Realtor was responsible for generating a Software Development

Plan which would document the Flight Control Application (FCA) Software (SW) Integrated

Product Team (IPT) software development processes.

70. Third, Relator was responsible for ensuring that all FCA SW IPT CSCI

software is developed in a manner compliant with all Lockheed Martin and JSF Program

software development process requirements.

71. Fourth, Relator was responsible for managing, technically, a staff of six (6)

engineers.

72. Fifth, Relator was responsible for performing and/or managing the following

activities:

a. Maintenance of the Control Law (CLAW) Software Requirement Specification

(SRS) Document;

b. Generation and maintenance of the Air Data (ADA) SRS;

c. Software design and development of the Air Data Computer Software

Configuration Item (CSCI);

d. Generation of the Flight Control System (FCS) System Segment

Specification (SSS) Requirements for Air Data functionality;

e. Configuration Management (CM) of all the FCA CSCI Software and their

related software products;

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f. Unit testing, static analysis and hardware/software (HW/SW) integration of all

FCA IPT software;

g. CLAW Onboard Model software development;

h. Tool development;

i. Coordination with tool vendors on bugs, improvements and tool updates;

j. Software Tool training;

k. Design, development, unit testing, static analysis and HW/SW integration of

all FCA middleware services interface software;

l. Memory and throughput allocation management;

m. Metric generation and reporting; and,

n. Tool analysis.

73. It is in the conduct of these responsibilities that Relator became aware of the

initial oversights or disregard of the software process, testing and compliance review which

morphed into Defendant’s knowing and intentional misrepresentations and concealments

regarding the development of the software, the testing of the software and the compliance

of the process with the SEAL 1 and related standards regarding the F-35 Program and

others, including the F-22 and other software products on which such standards were

ignored. Defendant’s Award to Relator acknowledged the range of violations. See

Exhibit D attached hereto.

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FALSE CLAIMS ACT STANDARDS AND VIOLATIONS

Introduction

74. Prior to June 1998 the acquisition, development, or support of mission-critical

software systems were governed by standards (DOD-STD-2167A/MIL-STD-498) generated

by the Department of Defense (DOD). Prior to March 1995 software quality programs for

the acquisition, development, or support of mission-critical software systems and were

governed by DOD-STD-2168.

75. These documents described the software and quality processes for all

defense contracts involving software. If software was developed under a military contract

you were required to develop it in a manner compliant with these DOD standards.

76. With the evolution of commercial industry standards these military standards

became redundant and were cancelled. Currently the acquisition, development, or support

of mission-critical software systems and their associated software quality plans are

governed by industry standards such as:

a. Software Engineering Institute (SEI) Capability Maturity Model (CMM); and

b. Safety Evidence Assurance Level (SEAL).

77. In order for contractors to receive a defense contract their internal software

processes must have been determined to be designated at a certain SEI/CMM level and in

the case of flight critical software additional requirements are stipulated by SEAL Level 1.

In addition to these requirements it is of course expected that Lockheed will develop its

software in a manner compliant with its own internal software development processes and

any specific JSF program requirements.

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78. All Lockheed developed software must meet the specific requirements of the

Lockheed Martin Aeronautics Company standard software development process, as

defined in CBM 4004 and PM 4001 with approved tailoring. The Lockheed Aero Ft. Worth

software development process was assessed at SEI CMM Level 4 on December 17, 1999.

Additionally all JSF software must meet the requirements defined for their associated

Software Evidence Assurance Level as defined in the Air System SDP. All software

relevant to this Qui Tam is characterized as SEAL 1 (Safety Critical, the most stringent

characterization).

Scope of Violations

79. The Lockheed JSF contract stipulates that the software must be developed in

a manner compliant with SEI/CMM Level 4 and that Flight Control System (FCS) Software

must meet SEAL 1 requirements. These requirements are knowingly not being followed by

Defendant. This document details this violation of the contract. Defendant, along with

other unnamed persons assigned to the JSF Program:

a. Participated in a concealed, active interference with the generation of

processes and procedures, (which would have led otherwise to software

safety and process compliance) all of which caused the development of

unsafe software which needlessly compounded the danger to any pilot who

flies the JSF aircraft;

b. Intentionally misled and misrepresented to the Lockheed Software

Management Team (SMT) and the JSF Program Office (JPO) on multiple

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occasions the VS, FCS, and FCA software safety and process compliance

status to ensure continued funding of the program;

c. Concealed the accurate software safety and process status from the SMT

and JPO to avoid interruption of funding of the JSF Program;

80. It is important to note that the software safety requirements contained in

Appendix C of the AS SDP are very specific as to what type and degree of testing must be

performed. It does not leave any gray area. Specific improper actions taken by Defendant

relative to this allegation are:

a. Developing formal qualification tests cases and procedures using the

implementation to generate the expected results. Using this improper

methodology, the test will never fail, but the intended purpose of the testing is

not achieved;

b. Performing formal qualifications test using software models that are not

compliant with software safety and process requirements;

c. Refusing to comply with software safety and process standards even after a

software crash occurred in the lab due to non-compliance to software safety

and process requirements that would have caused loss of the aircraft had it

occurred on the airplane;

d. Performing improper formal qualification tests using simulation software

models that have not been verified/validated;

e. Directing team members to alter presentations by misrepresenting or making

ambiguous the state of software safety and software process compliance;

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f. Directing specific team members to not disclose safety defects or otherwise

speak at presentations and/or meetings where SEAL 1 and software

development process related issues were discussed;

g. Retaliating against any team member who pursued software safety and/or

processed non-compliance issues;

h. Conducting a sham “Independent Review” without objective attendees and

then misrepresenting to the JPO that the software was being developed in a

manner compliant with all software safety and process requirements;

i. Coaching team members on methods to mislead the SMT and/or JPO when

asked questions about software safety or process compliance; and,

j. After investigations revealed the scope of the compliance problems, making

affirmative efforts to cover up the safety violations.

81. It is important to note while reviewing this document that germane to this

claim are the contractual requirements for the development of the software, not whether

any or all members of the JPO or Lockheed Martin think what is being done is OK.

Defendant has policies and procedures in place to request, when appropriate, a waiver or

“tailoring” of software safety and process requirements. Such waivers were not requested

by anyone associated with this claim. In fact not requesting waivers or tailorings was a

substantial component of the coverup process. The Relator suggested, if not professionally

insisted, on multiple occasions that the Defendants request waivers or tailorings when

refusing to perform software development or testing procedures under the required

SEI/CMM and SEAL standards, but was rebuffed—even reprimanded. Had management

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submitted a request as required, the request, itself, would have operated as an express

disclosure of Defendant’s failures, all of which was contrary to the Defendant’s concealment

scheme regarding its disregard of SEI/CMM and SEAL standards.

Relator’s Unsuccessful Efforts to Influence Defendant’s Management to Comply

with Contractual Obligations and Law

82. Relator made extensive efforts over several years to influence Defendant’s

upper management to acknowledge and utilize the proper software process, testing and

compliance standards for Defendant’s JSF and other Programs. Management

acknowledged the problems and recognized and rewarded Relator. See Exhibit D

attached hereto. Later, however, when Relator continued to remind management that it

was not addressing the identified software related problems, management’s responses

grew confrontational. Relator refused to participate in management’s continuing deception

of the U.S. government, as Defendant’s unlawful conduct was clearly conscious and willful

in regard to the defective development, testing and compliance standards for software

products. Defendant knew that it was obligated to abide by SEI and SEAL I standards in

developing software for the F-35, F-22 and related programs, but it refused to do so for

“money and scheduling reasons.” Because Relator attempted to ensure that the relevant

software was properly developed as required by the Defendant’s contract with the

government, Relator was rebuffed, retaliated against, was reassigned to a different, less

important position and, ultimately, was constructively terminated, notwithstanding his

willingness to lawfully perform his assigned tasks on the very critical F-35 Program. After

Relator’s constructive termination from the JSF Program, he confirmed that the F-35’s

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Mission Systems had similar software compliance issues, and Relator reported that

information to the United States in March 2006.

83. As a result of the Defendant’s knowing and intentional disregard of the

mandatory software processing, testing and compliance review standards, the software

now contains substantial corruption which has multiplied significantly the risks that the

software will not operate as intended, resulting in increased probabilities of: (1) the loss of

life and/or aircraft; (2) the pervasive failure of a major weapons system; and (3) major

financial costs to repair/remediate the F-35’s corrupted software systems.

84. Relator believes, after review, that the government has paid hundreds of

millions of dollars as of this date for the development of the software aspect of the

F-35 Program, as well as substantial money for similar software development for the

F-22 and related programs at its plants. However, the aircraft programs do not have

software that is as safe as represented by Defendant; that is, a software system

which has been properly developed, tested and has satisfied compliance review

according to contractually imposed SEI level 4 and SEAL 1 standards. The

government does not have software that the U.S. can safely utilize in the JSF Program.

The risks to pilots, troops on the ground, unintended targets and the federal budget is far

too great to allow Defendant to continue to mismanage this critical project.

85. Respectfully, the Relator urges the Department of Justice and the U.S.

Attorney’s office to timely press this matter in order to prevent the huge, continuing waste of

funds in the continued development of a software using a corrupt software process, one

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which has inherent risks far above what would be tolerated by the applicable standards in

the contracts of the parties and the armed services.

SEI EXPERT SAYS STOP

86. According to an SEI expert on such defense programs, the JSF software

development program should be immediately stopped in order to avoid further waste of

substantial resources and to avoid the serious risks outlined above. All software

development and testing that has not been processed according to required SEI/CMM or

SEAL standards must be revisited in order to provide a non-corrupted software system that

will operate the F-35 as intended. All past efforts are not a complete loss, but the

corruption is not susceptible to being surgically extracted, if the disobedience has been

pervasive. As the Relator knows that Defendant’s unlawful conduct was pervasive, the

process must cease, be re-commenced and must proceed according to the contractual and

applicable SEI and SEAL I software processing standards which Defendant has

represented—completely falsely—that it employed for the F-35 development; all

completely false.

87. The Defendant, solely to maximize its profits, has taken illicit software

development, testing and compliance shortcuts in order to circumvent the applicable SEAL

I software process and reliability requirements. The certain results are corrupted F-35

software systems which cannot be utilized with confidence within the acceptable ranges of

risk. Much of the hundreds of millions of dollars spent, thus far, have been wasted because

of Defendant’s dishonest conduct which has created an unacceptably dangerous

product. To continue to expend additional, substantial sums of money on the corrupt

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program will further compound the waste that has resulted from the Defendant’s unlawful

conduct. The SEI expert has confirmed that the continued, prospective building of

software on top of corrupted software will compound the ultimate financial cost of

remediating the software.

88. The U.S. should require Defendant to assign qualified software development

and compliance personnel to the rebuilding of the software system of the Flight Systems

and Mission Systems. The U.S. should also closely monitor whether the Defendant

properly abides by the required SEI/CMM and SEAL I standards, as applicable, all at the

costs of the Defendant. To allow the Defendant to retain in place those persons

responsible for this huge waste of government funding will continue to endanger the

development of the F-35 and set poor public policy which would do nothing to discourage

individuals in critical military contractor organizations from engaging in similar, wrongful

conduct in future national contracts such as the JSF Program. To fail to hold the culpable

managers responsible for the unlawful conduct that they willingly allowed on their watch

would frustrate every basic policy of the FCA.

FALSE CLAIMS ACT

89. This is an action which has alleged violations of the Federal False Claims Act,

31 U.S.C. §§ 3729-3732, seeking damages and civil penalties on behalf of the United

States and the Relator as a result of the Defendant’s false statements and claims.

90. The False Claims Act provides that any person who knowingly submits or

causes to be submitted to the United States for payment or approval a false or fraudulent

claim is liable to the Government for a civil penalty of not less than $5500 and not more

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than $11,000 for each such claim, plus three (3) times the amount of damages sustained

by the Government because of the false claim.

91. The False Claims Act allows any person having knowledge of a false or

fraudulent claim against the Government to bring an action in Federal District Court for

himself and for the United States Government and to share in any recovery as authorized

by 31 U.S.C. § 3730. Relator claims entitlement to a portion of any recovery obtained by

the United States as qui tam Relator/Plaintiff is, on information and belief, the first to file

and, in any event the original source for the complaints in this action.

92. Based on these provisions, the Relator on behalf of the United States

Government seeks through this action to recover damages and civil penalties arising from

the Defendants’ submission of false claims for payment or approval. In this case, such

claims were submitted to Government entities for payment for software processing, testing

and ostensible compliance when such process was corrupted by the Defendant’s

management which disregarded mandatory safety and reliability standards. Qui tam

Relator/Plaintiff believes the United States has suffered significant damages, likely in the

hundreds of millions of dollars, for a corrupted software process as a result of the

Defendant’s false and/or fraudulent claims.

93. As required under the False Claims Act, qui tam Relator/Plaintiff has

previously provided the Department of Justice, the offices of the Attorney General of the

United States a disclosure statement of material evidence and information related to this

Amended Complaint. That substantial disclosure statement, supplemented by continuing

disclosures, supports the claims of wrongdoing, virtually all of which were presented to

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Defendant’s management which, after conceding the violations, rejected the Relator’s

requests that the software process be conducted in accordance with the contract, industry

standards and the requirements of law.

FALSE STATEMENTS OR RECORDS

Contractor Requirements

94. The government’s Request for Proposal (RFP) seeking contractor bids for the

Joint Strike Fighter (JSF) Contract required that to be eligible to submit a proposal, the

contractor must be certified to have defined and documented software processes and

procedures that meet the SEI level 4 criteria; that is, the contractor must have in place a

software development process that has been certified as compliant with the standards of

SEI level 4 and have documented proof that it follows those processes Lockheed had such

certification and bid on the contract. Lockheed was awarded the contract on October 21,

2001. In order for Lockheed to demonstrate the Flight Readiness of the aircraft which was

required by contract, Safety Evidence Assurance Level (SEAL) requirements were added

for the Air System (AS) Integrated Product Team (IPT) with concurrence from the JSF

Program Office. The software relative to this claim was to be evaluated at SEAL 1, the

highest level of criticality. Relator began working for Lockheed on this contract on January

21, 2002, very early in the program. The Joint Strike Fighter (JSF) contract documents

specifically, or by reference or implication require that the contractor maintain its SEI/SEAL

compliant status and, of course, that it implement and follow SEI/SEAL compliant

procedures in the course of its performance of the Joint Strike Fighter (JSF) contract.

Because Lockheed had SEI/SEAL certified software development processes and failed to

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use them, every claim for payment under this contract based on or related to software

development is a false claim.

Relator Objected Early and Often to Failures To Follow SEI/SEAL Compliant

Procedures.

95. Relator joined Lockheed early in the Joint Strike Fighter (JSF) Program, in

2002. As early as February 26th 2002, (See Exhibit E, FCA SW Development Process

Analysis and Recommendations) Relator Sylvester Davis raised concerns to both

Lockheed and government officials regarding Lockheed’s failure to comply with

contractually required SEI and SEAL 1 level software quality assurance procedures. He

raised such concerns in Technical Interface Meetings (TIMs) and in other meetings and

written and verbal communications. On some occasions, Lockheed management

contended there were no express written requirements to comply with SEI and SEAL 1

standards; on other occasions, Buddy Denham and Theresa Giles, among others,

acknowledged Lockheed’s obligation to comply with Level 1 of the SEAL standards (“SEAL

1”).

96. On January 21, 2003, John Robb, senior manager of Lockheed’s JSF Vehicle

Systems Engineering Integration Team (VS SEIT) team (See Exhibit F, FYI FOR ACTION

JSEP development in critical status 01 21 2003) sent an e-mail to Lockheed officials and

employees and Joint Strike Fighter Program Office (JPO) officers expressing serious safety

concerns related to the lack of formal, SEI and SEAL compliant software development

procedures for the Joint Strike Fighter (JSF) program. Robb described the state of the

program as “the worst software disaster I’ve ever seen.” There were no safety critical

process, no software testing, no software development schedule, and no management

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procedures. The following day, January 22, 2003, Mr. Robb sent a follow-up e-mail,

apologizing for and retracting the statements in the January 21, 2003 e-mail. In a complete

turnabout, Robb called the Lockheed process “exemplary.” Government representatives

Bob Fookes, Teresa Giles, Stephen Gotch, Gary Gross, Kim Harrison, Paula Hooper, Joe

Kraumaker, and Carol Lopez received these communications. The retraction e-mail

constitutes a false record or statement used to obtain payment of a false claim. See

Exhibit G, A formal apology 01 22 2003.

Preliminary Design Review

97. A Preliminary Design Review was conducted February 5, 2003. The first

version of the Software Design Plan was produced after the Preliminary Design Review on

or about March 10, 2003.

98. On or about August 25, 2003, a Technical Interface Meeting (TIM) was held

and a TIM checklist, or “report card,” presented to the Government. Greg Walker prepared

this Technical Interface Meeting (TIM) report card, which expressly affirmed SEAL

compliance. This is a false statement or record used to obtain payment of false claims

from the Government.

99. On October 4, 2003, Buddy Denham sent an e-mail to Greg Walker inquiring

about the question of whether Lockheed was writing inadequate requirements, which were

not testable. Greg Walker responded on October 8, 2003, stating that the use of Autocode

software development software was the same as having in place and following SEAL1 and

SEI procedures and would produce SEAL1 and SEI compliant end products. This was a

knowing false statement on which the Government relied in paying all of Lockheed’s

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subsequent claims for payment in the Joint Strike Fighter program. The statement is not

true because SEAL1 and SEI are standards for software development, applicable to the

software development process, designed to ensure that the software can be tested.

Autocode is simply a software development language/tool, which is not a process. It is like

saying that because I am using Microsoft Word I do not have to check my spelling. You

could add a process step that required that spellcheck be run before documents are

submitted. This was not done. The reason this was not done is that, with the simple-to-

use Autocode tool, engineers who were not degreed or even formally trained software

engineers were used to create the software. These non-software engineers did not know

of or understand the software engineering processes and practices which the SEAL 1

requirements for software described in the AS SDP reflected and those which define SEI

Level 4. Therefore, they refused to implement the required SEI and SEAL 1 requirements.

100. Software that is not developed using SEAL 1 and SEI procedures is simply by

definition not SEAL1 or SEI compliant. Test cases for the software developed using

Autocode were formally tested by generating the expected results by executing the

Autocode generated software. This is the practical employment of the logical fallacy of

begging the question—the conclusion is the premise, and is proved by the assertion of

itself. The proof is circular and proves nothing beyond the fact that the adherent has

asserted it.

101. Software development engineers keep daily time records, which are the basis

for billings to the Government. Every daily time record in which an engineer on the

program indicating that the engineer was engaged in software development constitutes a

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false record used to obtain payment of a false claim from the Government, because none

of the software development work was performed in accordance with the SEAL and SEI

standards that were the sine qua non of the software development to be performed under

the contract.

Independent Review (IR)

102. In response to continuing discussions in e-mails and meetings, and

subsequent questions from the Government, regarding whether Lockheed was in

compliance with the required standards, about 1-1/2 years into the program, Lockheed’s

Santi Bulnes and Greg Walker called for an “Independent Review” (IR)—an ostensibly

objective evaluation by Lockheed.

103. The ostensibly “Independent” Review (IR) was initially to be conducted at one

or more meetings among the Joint Strike Fighter Program Office (JSFPO or JPO),

Lockheed Software Management Team (SMT), JSF Flight Control Systems (FCS) team,

JSF Systems Engineering (SE) team, and flight control staff from other Lockheed

programs. The Software Management Team (SMT) is a Lockheed group responsible for

ensuring that all Lockheed software complies with specific contractual requirements and

with all general Lockheed requirements. Both the Joint Strike Fighter contract and

Lockheed’s general standards require compliance with SEI and SEAL1. Relator, as

Software Product Manager for Flight Control Applications (FCA) and Gwen Goffney, as

Test Lead for Flight Control Application (FCA) software Integrated Product Team (IPT)

were to present charts at the Independent Review (IR). Relator and Gwen Goffney were

pressured prior to the Independent Review (IR) meeting to change charts they had

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prepared for the meeting. These charts showed a summary of Joint Strike Fighter (JSF)

specific software requirements and Lockheed general software requirements, and showed

there was no SEI process in place for these software requirements and thus no SEI

compliance. See Exhibit H, Software Process Overview

104. To avoid disclosing this information to the Joint Strike Fighter Program Office

(JSFPO or JPO) and Lockheed’s Software Management Team (SMT), on November 19,

2003, the day before the scheduled Independent Review (IR) meeting, FCS Manager, Santi

Bulnes and Greg Walker sent an e-mail (sent by Greg Walker’s secretary Ruie Whitley on

Greg Walker’s behalf) to all participants cancelling the meeting, stating that presenting

persons were not yet ready. See Exhibit I, Cancellation of Independent Review. Later

the same day, another e-mail was sent to all participants except Joint Strike Fighter

Program Office (JPO) and Software Management Team (SMT), rescheduling the

meeting for the same, previously cancelled, date and time—Thursday November 20, 2003

from 1:00-5:30 p.m. The cancellation was a false statement or material omission intended

to mislead the Joint Strike Fighter Program Office (JPO) and the Government by

concealing material information regarding noncompliance with contract requirements. The

ostensibly “Independent” Review (IR) became a sham. Relator presented the negative

information at the rescheduled Independent Review (IR) meeting. No minutes and no

attendance list were kept for this meeting. However, Sylvia Godoy was assigned an action

item—to take the two-column document provided by the Realtor with the first column listing

the SEAL 1 and SEI requirements, and indicate in the second column how Lockheed was

complying with SEAL 1 and SEI standards. After the meeting, Relator provided the

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document to Ms. Godoy via email with the first column filled in. This document was never

filled in. See Exhibit J, Independent Review Process Requirements 12 04 2003.

Nevertheless, after the meeting, Greg Walker and/or Santi Bulnes specifically and

expressly reported to Buddy Denham, of the Joint Strike Fighter Program Office (JPO), on

or about December 4, 2003, that the question had been reviewed and that it had been

determined that the software was in compliance. The Joint Strike Fighter Program Office

(JPO) reported to SD that Lockheed had reported that all of the software development was

compliant. This report by Lockheed is another false statement upon which the Government

relied in making payments on claims for payment made by Lockheed.

105. Relator provided to Greg Walker on December 11, 2003, a Flight Systems

Applications (FCA) software “report card” checklist for submission with Deliverables in

advance of the January, 2004 Critical Design Review. This checklist indicated that the

Flight Systems Application software development was not SEAL/SEI compliant. Greg

Walker stated that he would not submit this report to the Government. Greg Walker instead

submitted to the Government records failing to disclose that the program’s software

development was not SEAL/SEI compliant, although he had no knowledge regarding these

standards. These submissions were false records or statements used to obtain payment of

false claims from the Government.

Critical Design Review

106. A Critical Design Review (CDR), like a Preliminary Design Review (PDR), is a

milestone event in major government defense contracts; typically, a substantial progress

payment is conditioned upon completion of the CDR. The Critical Design Review (CDR) is

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a several-day meeting between the government and the contractor. There is a Critical

Design Review for each subsystem piece of software which is called a “Computer Software

Configuration Item” (CSCI) and each higher level system. The subsystem CDRs preceed

the CDRs for their higher level systems. “Deliverables” are typically due 30 to 60 days

before the CDR meeting. “Deliverables” are required products and/or documents which are

delivered to the JPO who represents the government which form the basis for the CDR

approval process The Critical Design Review (CDR) is not completed, or “closed,” and

payment is not made, until the government is satisfied that the contractually required

milestones have been met and any Request for Information (RFIs) have been resolved.

This is very significant as money—substantial progress payments—are conditioned upon

information provided—records and statements—by the contractor at the Critical Design

Review (CDR). The Critical Design Review is a precondition of a big payday for the

defense contractor upon its production and presentation of milestone Deliverables.

107. The Deliverables submitted to Joint Strike Fighter Program Office (JPO) 30

days in advance of the January 2004 Critical Design Review (CDR) contained the first

formal false statements and records provided to the Government regarding compliance.

Among the Deliverables was the SIM (System Integrity Manager) Software Development

Plan (SDP). The SIM (System Integrity Manager) Software Development Plan (SDP)

expressly and falsely stated that the software was in compliance with the required software

development standards. The SIM (System Integrity Manager) Software Development Plan

(SDP), version 3, dated October 31, 2003 was a Deliverable in advance of the January

2004 Critical Design Review (CDR). Section 3.2.2.5.2 of this SIM (System Integrity

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Manager) SDP falsely indicated SIM IPT SEAL 1 compliance. This constituted a false

record or statement used to obtain payment of a false claim from the Government. The

Vehicle Systems CDR readiness checklist submitted to the Government in advance of the

Critical Design Review (CDR) also falsely affirmed compliance. The Flight Control Systems

(FCS) Systems Engineering Integration Team (SEIT) Software Development Plan (SDP)

and their Software Requirements Specifications (SRS) submitted to the Government in

advance of the Critical Design Review (CDR) also falsely affirmed compliance.

108. In January 2004, a Critical Design Review (CDR) was conducted; the Flight

Control Applications (FCA) portion of the CDR was conducted January 20-23, 2004. As

Software Product Manager (SPM) for Flight Control Applications (FCA), Relator Sylvester

Davis attended the Critical Design Review (CDR) meeting and gave a substantial

presentation regarding the status of the development of software for Flight Control

Applications (FCA). In his presentation, Relator addressed SEI and SEAL compliance in a

graph, which simply stated “yes” or “no” as to whether Lockheed was following SEI and

SEAL procedures. For approximately 8-10 items, his indication regarding SEI and SEAL

compliance was “no.” Representatives of the Joint Strike Fighter Program Office (JSFPO

or JPO), Lockheed managers and directors, and government/military officers attended the

presentation. Although there had been considerable verbal and e-mail communication

regarding whether the program was SEAL and SEI compliant for nearly three years,

Relator’s presentation at this Critical Design Review (CDR) was the first clear and concise

statement that Lockheed was not complying.

RFI 19

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109. After the spring 2004 Critical Design Review meeting (CDR), the government

issued to Lockheed Request for Information (RFI) 19. Request for Information (RFI) 19

was the government’s first RFI regarding SEI and SEAL compliance. Request for

Information (RFI) 19 requested that Lockheed “Prior to CDR closure get concurrence from

safety (SMT) that the unit testing approach identified in the FCA SDP section 3.2.2.5.2.

(See Unit Test slides 5-22) meets the SEAL requirements identified in the AS SDP. There

should be an emphasis on those SEAL “In other words required Lockheed to affirm that

Flight Control Application (FCA) software was in compliance with the required SEI and

SEAL standards. The Critical Design Review (CDR) could not be completed and payment

could not be made until all Requests for Information were closed. Thus, to complete the

Critical Design Review (CDR), Lockheed had to be in compliance and so affirm in response

to RFI 19. See Exhibit K, All RFAs RFIs 6-2-04

110. If the Deliverables and the Critical Design (CDR) meeting give rise to

questions, the Government submits them to the contractor in “Requests for Information

(RFI). All Requests for Information (RFIs) must be satisfactorily answered and closed

before the Critical Design Review (CDR) is complete and payment made. Given that the

SMT had not made their determination and that when they did they did not affirm, RFI 19

should not have been closed and payment should not have been made.

111. Lockheed maintained a database of software problem reports called Software

Problem Anomaly Reports (SPAR). This database was accessible to the Government, so

that it could be informed of problems and their resolution. When a problem was resolved

and the SPAR removed, this information and the reason were recorded in the SPAR

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system. SPAR 1256 submitted by Gerald F. Waid on August 25, 2004, regarding the

absence of range checking, a SEI SEAL1 requirement, stated that it was not clear which

department was responsible for verifying range checking. SEAL compliant procedures

would actually require redundant range checking verification by multiple departments. This

SPAR was closed by Richard Bonnett on August 31, 2004, indicating that there was no

range checking problem—with no indication of the answer to the question posed in the

SPAR. This closing of SPAR 1256 was thus a false record or statement used to obtain

payment of a false claim from the Government.

112. On September 30, 2004, Relator was expelled from a meeting, attended by

JPO by telephone, for responding to a false statement made by Lockheed personnel

regarding software safety. JPO personnel attended this meeting, for which the topic was

SEAL 1 requirements fulfillment. Relator disagreed with false statements that flagged

SEAL1 software defects were “all ok” and not safety issues, and that it was not necessary

for personnel to report defects as they were found. The false statements and the

suppression of Relator’s true statement are false statements or records used to obtain

payment of false claims.

113. On November 3, 2004, the flight control software crashed during flight

simulation due to a “triple channel reset.” This means that had the aircraft been in the air, it

would have crashed because its flight control software would have failed, meaning it was

impossible for a pilot to control the aircraft; the pilot could not steer right or left, direct the

nose up or down, or exercise any control whatsoever over the aircraft. It simply would fall

from the sky like a rock. Edith (Jo) Holtzman was Manager of the SIM IPT, which was

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responsible for the Flight Control Redundancy Management (FCRM) software. On

November 4, 2004, the cause of the crash was determined. It was clear that range

checking was needed. Relator opened SPAR 1637 on November 10, 2004. SPAR 1637

identified the need for System Integrity Manager (SIM) to do range checking pursuant to

CO1, pointing to the crash as demonstrating the problem. On November 4, 2004 at 2:14

p.m., after a series of e-mail communications regarding this matter, Ms. Holtzman sent an

e-mail to all Lockheed employees who had been communicating regarding the problem

instructing them that there were to be no further responses or discussions regarding the

matter coming from her staff. By January 2005, this SPAR had been closed without

explanation other than “no problem.” Jane Gardner, a lead engineer in SIM (System

Integrity Manager) recommended that SPAR 1637 be rejected. On January 19, 2005, this

SPAR was changed to “rejected.” The closing and rejection of SPAR 1637 constitute false

records or statements used to obtain payment of false claims.

114. In a January 25, 2005 SPAR board meeting, Chuck Neppach asked whether

SPAR 1256 needed to be reopened in light of the triple channel reset episode. Edith

Holtzman stated she was waiting for guidance from Rich Bonnett. The Government

attends SPAR board meetings. Ms. Holtzman opened SPAR 1968 regarding range

checking verification on January 27, 2005; SPAR 1968 was the same as SPAR 1256,

which had previously been closed as “no problem.”

SMT Investigation

115. Lockheed’s Software Management Team (SMT), a Lockheed group

responsible for ensuring that all Lockheed software complies with specific contractual

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requirements and with all general Lockheed requirements, conducted an investigation into

CO1 and SEI compliance. Relator was ostensibly included in this investigation. CO1 and

SEI define the processes used to develop software. Compliant software is developed in

conformity with these standards. Determining whether software is compliant is a two-step

process. First, it is determined whether the developer has a defined process that will result

in CO1 and SEI if followed. Second, it is determined whether the developer is following the

process. Relator expressed concerns repeatedly that the first step was not fulfilled—there

was no CO1/SEI compliant process in place. He responded to SMT’s inquiry by e-mail to

this effect. SMT rejected the software twice. Nonetheless, Lockheed management simply

resubmitted the same, unchanged documentation, after applying employment pressure to

SMT team members. Relator learned, after he was removed from the program by

Lockheed, that the unchanged documentation was subsequently passed by SMT although

there still was no CO1/SEI compliant process in place and thus, no such process being

followed.

116. A series of December 1, 2004 e-mails shows Lockheed personnel discussing

and planning the creation of false records and statements to cover the lack of SEAL1/SEI

compliance in the program. Deaun Dawson sent an e-mail on behalf of Lockheed director

Opie W. White to John Robb, with several other Lockheed personnel copied, including

Lockheed director of vehicle systems William S. Trimboli, at 10:52 a.m. on December 1,

2004. See Exhibit L, FW FOR ACTION Please include me . . . . In this e-mail he stated

that he did “not support releasing the SEI as now written,” complaining that the written SEI

requirements “make[s] us and our supplier base non-compliant.” This related to software

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maturity definitions in SEI software engineering instructions. Dawson/White continued,

“[t]he software teams are going to have to get on the same page as the rest of the program

and define what we can do with what we have.” Don Kotzer responded in an e-mail of

December 1, 2005, 11:51 a.m., instructing Lockheed personnel, “[p]lease edit the

document [the VS 2011 comments.doc, which was attached] to provide a no-impact

version.” The significance of this communication is that Lockheed decided to prepare

engineering specifications documentation by analyzing, reviewing, and incorporating what

had been accomplished, rather than reflecting contract requirements against which results

would be measured. By analogy, one might create a yardstick the length of one’s arm,

then measure one’s arm with the yardstick and conclude that the arm is, indeed, a yard in

length. Lockheed not only agreed in these e-mail communications to create the false

requirements documentation, it subsequently did create such false engineering

specifications documentation, which did not incorporate contractually required SEI/SEAL1

requirements. By these changes, Lockheed improperly removed safety requirements from

engineering specifications. This was done because, with the safety requirements in place,

the software as it had been developed—not in compliance with SEI/SEAL1/CO1—would

not load on the aircraft; the requirements software interface would prevent it from loading

because it did not fulfill the requirements. To permit the program to move forward without

going back and developing the software in compliance with SEI/SEAL1 and related safety

standards, Lockheed simply changed the requirements so that its software would pass the

test and successfully load onto the aircraft. These changed requirements permitted the

development of readiness reviews—documents representing that the aircraft was ready for

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flight testing. By knowingly removing these requirements, Lockheed represented to JPO,

arbitrarily and without analysis, that the aircraft was mature, and flight test ready. The

aircraft was reported ready. Such readiness reviews and reports and the underlying

documents all constitute false statements or records used to obtain payment of false

claims. These engineering specifications documents constitute false records or statements

delivered to the Government and used to obtain payment of false claims from the

Government.

117. In 2005, Lockheed gave Relator a special award recognizing his contribution

to the program in reporting compliance failures. Nonetheless, the failure to comply

continued unabated.

118. In 2005, Lockheed provided a Vehicle Systems Checklist (VSC) to the

Government. This checklist affirmed SEAL/SEI compliance and thus was a false record or

statement used to obtain payment of a false claim.

119. In March of 2005, Lockheed provided a Management Status Report (MSR) to

the Government. This status report affirmed SEAL/SEI compliance and thus was a false

record or statement used to obtain payment of a false claim.

120. After RFI 19 and two rejections, an investigation was conducted. Relator

attended a May 23, 2005 meeting. Pam Thompson, Lockheed’s overall director of software

engineering raised concerns regarding the software for the program; Thompson was forced

out of the F22 program because she raised these concerns.

121. Between April and June of 2005, Chuck Neppach, the Government’s JPO

software liaison, left the program because he was not willing to sign a flight test readiness

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review; Neppach contended the aircraft was not ready for its first flight based on defined

CO1 criteria.

122. On our about June 20, 2005, Ricky Stanford scheduled a CO1 assessment

pre-meeting to discuss “how to pass the [CO1] assessment.” Relator declined to attend,

because he had made his position clear on the subject—that Lockheed should have been

complying with CO1 in the software development process all along and that compliance

that takes years can’t be done in a few weeks or months.

123. In October of 2005, Relator was on medical leave. An internal CO1 audit was

undertaken by the Integrated Product Team (IPT). Three Lockheed employees, Amit

Diggikan, James Ricky Stanford, and Mike Bridges, presented information at an October

25, 2005 meeting stating that the CO1 audit confirmed compliance. This information was

followed up with one or more documents confirming CO1 compliance. These affirmations

of CO1 compliance are false records or statements used to obtain payment of false claims.

Retaliation against Sylvester Davis

124. From and after Relator became aware of management’s intention to seek to

circumvent admitted safety and reliability standards in the software process for the JSF

Program, he repeatedly brought it to the attention of management, both privately and in

management meetings. As a result he was severely criticized, shunned from meetings

which he should have attended in view of his responsibilities, ridiculed and ultimately the

Relator was forced from his F-35 position in Defendant’s effort to restrict Relator’s

knowledge of future violations, assigned to a different job with the Defendant and,

ultimately, constructively terminated.

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125. Relator was mistreated, seriously and often. He suffered mental distress from

the mistreatment as well as Defendant’s refusal to perform a software process as

contemplated and required by law on the JSF Program. The Relator has provided the

United States Government with documentation of the Defendant’s improper conduct toward

him which occurred solely because he demanded that safety measures be honored as

required by the contracts, industry standards and the law. The Relator attempted to work

through the Defendant’s obstinacy on these issues, but he failed to persuade the Defendant

to perform lawfully. His initial belief that Defendant’s upper management would realize the

seriousness of the corruption of the software process was misplaced, as management

evidenced more concern about continuing to bypass the time and expense required for

SEAL I compliance, than ensuring that the necessary time and expenditures were

dedicated to the software process, so that the tasks were safely performed as required.

Ultimately, the Realtor was forced from his very important F-35 position, and he was

constructively terminated for his refusal to acquiesce to management’s conspiratorial

objectives; that is, Defendant’s conscious disregard of its contractual responsibilities to the

U.S. and other governments of the JSF Program, as well as its arrogant disregard of its

substantial FCA violations.

126. As a result of the Defendant’s unlawful conduct and its retaliation against

the Relator/Plaintiff, the Relator/Plaintiff is entitled to recover under the False Claims Act,

31 U.S.C. § 3730(h).

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CAUSES OF ACTION

A. Count I - False Claims (31 U.S.C. § 3729).

127. Qui tam Relator/Plaintiff realleges and hereby incorporates by reference each

and every allegation contained in preceding paragraphs numbered 1 through 126 of this

Complaint.

128. Based on the acts described above, Defendant knowingly violated one or

more of the following:

a. knowingly presented, or caused to be presented, to an officer or employee of

the United States Government or a member of the Armed Forces of the
United States a false or fraudulent claim for payment or approval;

b. knowingly made, used, or caused to be made or used, a false record or

statement to get a false or fraudulent claim paid or approved by the
Government;

c. conspired to defraud the Government by getting a false or fraudulent claim

allowed or paid;

d. knowingly made, used, or caused to be made or used, a false record or

statement to conceal, avoid, or decrease an obligation to pay or transmit
money or property to the Government.

129. The United States Government and its allied partners in the JSF Program

were unaware of the falsity of these claims, records, and/or statements made by the

Defendant and, in reliance on the accuracy thereof, paid the Defendant for the fraudulent

claims.

130. Because of the Defendant’s fraudulent conduct, the United States

Government has not received the contractual value, to which it was entitled by law, as

contemplated in the JSF Program, all of which is in violation of the False Claims Act.

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131. Due to the Defendant’s unlawful conduct, the United States Government has

suffered substantial monetary damages, likely in the sum of hundreds of millions of

dollars, all of for which the Defendant should be held accountable.

B. Count II – Retaliation against Relator (31 U.S.C. § 3730(h)).

132. Qui tam Relator/Plaintiff realleges and hereby incorporates by reference each

and every allegation contained in preceding paragraphs numbered 1 through 131 of this

Complaint.

132. In violation of the False Claims Act § 3730(h), the Defendant took negative

employment actions against Relator/Plaintiff in response to his persistent reporting to

Defendant’s management about Defendant’s continuing False Claims Act violations. The

Defendant’s response was retaliation against the Relator/Plaintiff.

133. As a result of Defendant’s conduct, the Relator/Plaintiff has suffered negative

employment consequences and has suffered damages. He seeks damages for the

Defendant’s unlawful conduct in the form of retaliation against him, solely because Relator

insisted upon Defendant’s adherence to required software development safety standards to

protect members of the armed forces, unintended targets and the U.S. Treasury.

RELIEF

134. The Relator/Plaintiff seeks to receive, on his own behalf, all monetary

damages that he is entitled to receive as a result of the Defendant’s retaliatory conduct

against him. In addition, the Relator/Plaintiff seeks punitive damages on his own behalf.

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PRAYER

WHEREFORE, Relator/Plaintiff prays that this District Court enter judgment on

behalf of the Plaintiffs and against the Defendant for the following:

a. Damages in the amount of three (3) times the actual damages suffered by
the United States Government as a result of the Defendant’s unlawful
conduct;

b. Civil penalties against the Defendant equal to $11,000 for each violation of 31
U.S.C. 3729;

c. Qui tam Relator/Plaintiff be awarded an appropriate amount allowed pursuant

to 31 U.S.C. § 3730(b);

d. Qui tam Relator/Plaintiff be awarded all costs and expenses of this litigation,
including attorneys’ fees and costs of court;

e. Pre-judgment interest at the highest rate allowed by law;

f. Relator/Plaintiff’s individual damages for Defendant’s retaliatory conduct;

h. Punitive damages to the Relator/Plaintiff for retaliatory conduct by the

Defendant; and,

i. All other relief, on behalf of the Relator/Plaintiff or the United States

Government, to which they may be entitled, whether at law or in equity, and
as the District Court may deem just and proper.

Dated: April 15, 2009

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UNITED STATES OF AMERICA, ex rel. Sylvester Davis

Respectfully submitted:

________/s/____________
David M. Nissman, Esq.
The McChain Nissman Law Group, LLC
53A Company Street
Christiansted, BI 00820
(340) 719-0601 phone
(340) 719-0602 fax

_______/s/_____________
Samuel L. Boyd
Catherine C. Jobe
Boyd & Associates
6440 North Central Expressway
Suite 600
Dallas, Texas 75206-4101
Telephone (214) 696-2300
Facsimile (214) 363-6856
CO-COUNSEL FOR RELATOR/PLAINTIFF

Veretta Frazier
West & Gooden
320 S R L Thornton Fwy # 300
Dallas, Texas 75203 6440
Telephone (214) 941-1881
CO- COUNSEL FOR RELATOR/PLAINTIFFS

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CERTIFICATE OF SERVICE

On this date, May 26, 2009, a copy of Relator’s/Plaintiff’s Second Amended

Complaint was served via electronic mail and/or certified mail, pursuant to the Federal
Rules of Civil Procedure, to

Via Certified Mail Return Receipt Requested (CMRRR)

Attorney General Eric H. Holder, Jr., Alberto Gonzales, U.S. Department of Justice
950 Pennsylvania Avenue NW
Washington D.C. 20530

Paul Wogaman, Civil Division, U.S. Department of Justice,

Attorneys, Civil Division
601 “D” Street NW
Room 9006
Washington, DC 20044

_______/s/__________________________
Samuel L. Boyd P.C.

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