Combat helmet shell and foam pad inserts on a factory workbench

Galvion Ltd., which makes protective head systems for military and police users, agreed to pay $2,495,000 to resolve False Claims Act allegations that it sold the Defense Department helmet parts that did not meet USA sourcing rules, the U.S. Attorney’s Office for the District of Vermont announced on June 6, 2024.

What the government alleged

  • The product was the modular suspension system (MSS), a pad, net and harness insert for combat helmets.
  • It was sold through prime vendors under the Defense Logistics Agency’s Special Operational Equipment Tailored Logistic Support program.
  • That program requires compliance with the Berry Amendment, which says textiles in covered military goods must be sourced from the USA.
  • From January 1, 2016 to June 30, 2019, the company used a non-domestic source of pads, and for some orders foreign nets and harnesses.

The company and the plant

Galvion has a corporate parent in Montreal and three USA production plants, including the Newport, Vermont facility where the systems were made. During the period at issue the MSS belonged to Revision Military Ltd.; the helmet business was carved out in September 2019 and became Galvion. The settlement amount reflects Galvion’s cooperation and the compliance steps it took after 2019, prosecutors said. Galvion did not admit liability.

“By selling improperly sourced products to the military, the company placed profits over compliance with clear regulations.”

U.S. Attorney Nikolas P. Kerest

The case began with a complaint to the DLA Hotline about where the materials came from, and was investigated with the Defense Criminal Investigative Service.

FAQ

How much will Galvion pay?

$2,495,000 to resolve the False Claims Act allegations.

What rule was involved?

The Berry Amendment, 10 U.S.C. 4862, which requires textiles in covered defense goods to be sourced from the USA.

Did Galvion admit wrongdoing?

No. The settlement resolves allegations; Galvion did not admit liability.

Source & credit

Source: U.S. Attorney’s Office, District of Vermont, June 6, 2024: “Galvion To Pay $2,495,000 To Resolve False Claims Act Allegations”.

Also: Caledonian Record, June 7, 2024: “Military Equipment Maker Fined For Violating Made In USA Mandate”.