Something we dread in airsoft, getting airsoft guns that we call “lemons.” But at least we can live with that problem, literally, as compared to the sub-par M320 grenade launchers that a company supplied to the U.S. Army. A defective weapon in a firefight can be death sentence to the soldier holding it; or to a squad if their grenadier fails to fire the weapon.

In this case, Colorado-based arms supplier, Capco LLC was fined over US$1 million for supplying defective M320 launchers between July 2016 to March 2018 even if the company officials knew that the barrels used in these launchers did not meet specifications.  This was known when a former employee filed a whistleblower suit against the company. James Cole, who was a former quality engineer at the company revealed that high-quality steel used for a key part of the weapon was replace with a cheaper, less durable steel. The use cheaper material affect the way the launchers supplied worked. Also, the company had reason to know that the M320 firing pins had incorrect steel. The company did an investigation that was deemed to be inadequate and was not reported to the U.S. Army.

The U.S. government concluded that this gave rise to civil liability under the False Claims Act. An amount of $1,025,429 will be settled with Capco and Mr. Cole will recover approximately $235,000.

U.S. Army Maj. Kamil Sztalkoper (foreground) fires an M320 grenade launcher at the range on Forward Operating Base Thunder in Afghanistan's Paktia province. Photo was taken in October 18, 2013. (U.S. Department of Defense photo)

“Not conforming to contract requirements that ultimately have a direct impact on the success in combat of our brave men and women in uniform is incredibly unconscionable,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit said in a press release.  “Thanks to the efforts of our special agents and our other law enforcement partners, today’s settlement is possible.”

“Identifying and investigating allegations of procurement fraud, specifically poor quality or non-conforming products, is at the heart of the Department of Defense Office of Inspector General’s  (DoDIG) mission,” said Michael Mentavlos, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Southwest Field Office.  “DCIS, along with or law enforcement partners will continue to identify and investigate those individuals and companies that attempt to defraud the Department of Defense and put our warfighters at risk.”

Capco, LLC. was awarded a $32,870,329 firm-fixed-price contract in 2015 for 40mm M320/M320A1 grenade launchers and non-functional training displays to be delivered to the U.S. Army. This had an estimated completion date of July 30, 2020 in a press release from the company.  The company’s profile shows that it was established in 1968 and employs almost 400 people at their facilities in Grand Junction, Colorado. It serves as a prime contractor for key procurement offices from the different branches of the U.S. Department of Defense’s service branches. It also serves a broader commercial customer base of OEMs and suppliers in a variety of industries.

Top photo: A U.S. Ranger armed with an M4A1 with an attached M320 grenade launcher. (U.S. Army Photo by Pfc. Rashene)