Waltham Company Ordered to Pay in Land Mine Case

A Waltham company has agreed to pay $1.9 million to the federal government for failing to provide the U.S. Army with accurate and complete pricing data for its sale of land mine detectors, according to the U.S. Attorney’s Office. 

CyTerra, which is based in Waltham, manufactures mine detectors, among other things, that are used by the military. 

“The Department of Justice will hold accountable those who undermine the integrity of the public contract process in pursuit of financial gain,” Acting Assistant Attorney General for the Civil Division Stuart F. Delery said in a statement. “Those who wish to do business with the government are expected to do so fairly, and those who don’t will face the consequences.” 

In 2003, the Army awarded CyTerra a contract make mine detectors for their use. During negotiations to modify the contract, CyTerra knowingly failed to provide accuse cost and pricing data for the amount of hours it would take to make them, according to the U.S. Attorney’s Office. The government argued had it known the true pricing data, it would negotiated a lower price for the modified contract. 

The settlement ends a whistleblower lawsuit filed by two former company executives. The pair will share $$361,000 of the settlement.