Simi-based AeroVironment under investigation
One of the city’s largest employers is being investigated by the Department of Justice.
AeroVironment Inc. said in a statement released last month that it is cooperating with an investigation by the Civil Fraud Section of the U.S. Department of Justice.
The technology company designs and develops unmanned aircraft systems (UAS) and electric energy systems.
Federal investigators are looking into the company’s billing practices.
A formal claim has not been filed against AeroVironment.
When asked for more specifics on the investigation, Steven Gitlin, spokesperson for AeroVironment, could only refer back to the statement released June 25. But he said there are a few important points to note.
“One, it hasn’t impacted our ability to do business with the government. Two, this is from their civil fraud division not their criminal fraud division—that’s an important distinction—and three, based on what we know, this won’t have a material impact on our business,” Gitlin said.
The U.S. Department of Defense and allied military services use AeroVironment’s battery-powered, hand-launched UAS to provide real-time, airborne reconnaissance and surveillance.
In addition, AeroVironment produces clean transportation solutions, including electric vehicle charging systems for consumers, automakers, utilities and government agencies; power cycling and test systems for electric vehicle developers; and industrial electric vehicle charging systems for commercial fleets.
The electric energy systems side of the business is in Monrovia, while the UAS activities are based in Simi Valley.
AeroVironment has three facilities in Simi totaling about 230,000 square feet and employing more than 400 people, Gitlin said.
The company is one of the city’s largest employers. Revenues in fiscal year 2009-10 were just under $250 million for the entire company, Gitlin said; about 90 percent of that revenue is generated by the Simi operations.
According to its statement, the company believes the majority of the issues identified in the investigation have been previously addressed during Defense Contract Audit Agency (DCAA) audit processes. Further, AeroVironment was notified by the agency in February that it deemed the company’s accounting system was adequate for accumulating and billing costs under government contracts.
The company said the investigation hasn’t affected its ability to receive government contracts. In fact, AeroVironment has received orders from the government in excess of $50 million since February.
Gitlin said that for most everyone in the company—including the more than 400 Simi employees— business is going on as usual.
“We’re taking it very seriously, and the people in our legal staff are cooperating fully and voluntarily provided the documents that were requested,” he said, “but the vast majority of people in the company are doing what they did before, which is working on really innovative solutions that are helping our war fighters be safer.”



