According to a release from the U.S. Attorney’s Office, District of Vermont, Galvion, known for their helmets and power systems has agreed to pay $2,495,000 for violating the Berry Amendment between 2016 and 2019. Galvion has responded and their statement can be seen here.
The DOJ announcement is below:
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Galvion, Ltd. (Galvion) has agreed to pay $2,495,000 to resolve allegations that it violated the False Claims Act through the knowing sale of non-conforming parts to the United States Department of Defense.
Galvion is headquartered in Montreal, Canada with three production facilities located in the United States, including one in Newport, Vermont. Galvion manufactures protective head systems for use by law enforcement and military personnel, including the United States military. Among the company’s products is the modular suspension system (MSS), a helmet insert.
Through prime vendors, the company sold MSS products to the United States under the Defense Logistics Agency’s Special Operational Equipment Tailored Logistic Support (SOE TLS) Program, which requires that textiles be sourced from the United States in accordance with the Berry Amendment. The government’s investigation revealed that between January 1, 2016 and June 30, 2019, the company used a non-domestic source of pads in the MSS products sold through the SOE TLS program, as well as a foreign source of nets and harnesses for some orders.
Galvion has acknowledged that employees with oversight of material sourcing, product operations, and/or product sales during this period were aware that certain components in these orders needed to be sourced from the United States and that non-compliant components nevertheless were used. The government alleges that these acts violated the False Claims Act, a civil fraud statute that prohibits the knowing submission of false claims to the government.
“Fraud by government contractors and subcontractors is a serious issue and can erode the integrity of government programs,” said United States Attorney Nikolas P. Kerest. “By selling improperly sourced products to the military, the company placed profits over compliance with clear regulations. This settlement demonstrates that the United States Attorney’s Office will continue to root out fraud among companies who do business with the government.”
“The introduction of non-compliant materials into the military supply chain poses a significant risk to our nation’s service members,” stated Brian J. Solecki, Acting Special Agent in Charge, U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office. “We remain committed to working with our law enforcement partners and the Department of Justice, to ensure that individuals and companies who engage in fraudulent activity, at the expense of the Department of Defense, are held accountable for their actions.”
“This settlement further demonstrates the resolve of Army CID, and our law enforcement partners to protect and defend the assets of the United States Army,” stated Special Agent in Charge Keith K. Kelly, of the U.S. Army Criminal Investigation Division’s Fraud Field Office.
During the period in question, the MSS was a product of Revision Military Ltd (Revision); in September 2019, Revision’s owner sold the company and certain product lines but retained the protective head system business, which thereafter operated as Galvion.
To resolve the claims against it, Galvion has agreed to pay to the United States a total of $2,495,000. This amount reflects Galvion’s acceptance of responsibility, cooperation with the government investigation, and compliance measures Galvion implemented after 2019.
Assistant United States Attorney Lauren Almquist Lively handled this matter for the United States Attorney’s Office for the District of Vermont. Investigative support was provided by the United States Department of Defense, Defense Criminal Investigative Service, and Department of the Army Criminal Investigation Division.
This investigation stemmed from a complaint made to the DLA Hotline related to the origin of materials used in the company’s MSS products. The government encourages individuals with information on potential fraud to report it, as complaints and hotline tips often play a key role in holding companies accountable. To report fraud, waste, abuse, or mismanagement impacting DLA, contact the DLA Hotline by completing the online form at www.dla.mil/Inspector-General/Hotline-Form. You can also report concerns to OIGHotline@dla.mil or call 1-800-411-9127. Requests for confidentiality will be honored to the full extent allowed by law.
The settlement agreement between the United States and Galvion is available at this link:
Galvion Settlement Agreement
