Boeing to pay $4 million for inflating contract price for anti-missile towed decoy system for B-1 Published Oct. 26, 2010 United States Attorney Central District of California LOS ANGELES -- The Boeing Company has agreed to pay $4 million to settle a civil lawsuit alleging that the company unlawfully inflated the price it charged the Air Force to manufacture the Towed Decoy System for the B-1 bomber, United States Attorney André Birotte Jr. announced today. The government's lawsuit, which was filed in September 2008, alleged that Boeing provided inaccurate and incomplete information to the Air Force in connection with Boeing's proposal to obtain the contract to produce Towed Decoy System (TDS) kits. The government alleged that Boeing failed to disclose to Air Force contract negotiators that it had previously manufactured TDS kits for much lower costs, largely by outsourcing much of the work to outside vendors and subcontractors. When activated, the TDS deploys a decoy that is towed behind the aircraft and is designed to protect the aircraft from guided missiles. In the settlement agreement that was finalized today, the United States agreed to dismiss the lawsuit against Boeing, which agreed to resolve the case without admitting wrongdoing. Boeing has agreed to pay the $4 million settlement within seven days. The government investigation team included agents with the Air Force's Office of Special Investigations, agents with the Defense Criminal Investigative Service and auditors with the Defense Contract Audit Agency.