Talley Industries, Inc. and Consolidated Subsidiaries - Page 6




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          (TINA), 10 U.S.C. section 2306(f) (1982),3 and common law                   



          2(...continued)                                                             
               United States is liable to the United States Government                
               for a civil penalty of $2,000, an amount equal to 2                    
               times the amount of damages the Government sustains                    
               because of the act of that person, and costs of the                    
               civil action, if the person--                                          
               (1) knowingly presents, or causes to be                                
               presented, to an officer or employee of the Government                 
               or a member of an armed force a false or fraudulent                    
               claim for payment or approval;                                         
               (2) knowingly makes, uses, or causes to be made                        
               or used, a false record or statement to get a false or                 
               fraudulent claim paid or approved * * *                                
          3  At the time of Stencel's indictment, 10 U.S.C. sec.                      
          2306(f) (1982) provided in pertinent part:                                  
               (1) A prime contractor or any subcontractor shall                      
               be required to submit cost or pricing data under the                   
               circumstances listed below, and shall be required to                   
               certify that, to the best of his knowledge and belief,                 
               the cost or pricing data he submitted was accurate,                    
               complete and current--                                                 
               (A) prior to the award of any negotiated prime                         
               contract under this title where the price is expected                  
               to exceed $500,000; * * *                                              
               (2) Any prime contract or change or modification                       
               thereto under which such certificate is required shall                 
               contain a provision that the price to the Government,                  
               including profit or fee, shall be adjusted to exclude                  
               any significant sums by which it may be determined by                  
               the head of the agency [as defined in section 2302 to                  
               include the Secretary of the Navy] that such price was                 
               increased because the contractor or any subcontractor                  
               required to furnish such a certificate, furnished cost                 
               or pricing data which, as of a date agreed upon between                
               the parties (which date shall be as close to the date                  
               of agreement on the negotiated price as is                             
               practicable), was inaccurate, incomplete, or noncurrent                
               * * *.                                                                 




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