Defense contractor ArmorSource will pay $3 million to resolve False Claims Act allegations in connection with a contract to provide combat helmets to the U.S. Army.

ArmorSource, headquartered in Hebron, Ohio, designs, develops and manufactures ballistic helmets for military and law enforcement personnel worldwide.

In 2006, the Army contracted with ArmorSource to manufacture the Advanced Combat Helmet or ACH for use by soldiers in combat.

ACH helmets are made of Kevlar, an armored material, and are worn to provide ballistic protection for the soldier.

The United States alleged that from 2006 to 2009, ArmorSource delivered ACH helmets to the Army that were manufactured and tested using methods that did not conform to contract requirements and that failed to meet contract performance standards.

In May 2010, the Army began recalling the helmets after several lots failed ballistic safety tests.

ArmorSource subcontracted the manufacturing to Federal Prison Industries, Inc., which operates under the trade name UNICOR.

This settlement resolves a lawsuit filed by whistleblowers Melessa Ponzio and Sharon Clubb, FPI employees, under the qui tam or whistleblower provisions of the False Claims Act.

The law permits private individuals to sue on behalf of the government those who falsely claim federal funds and to receive a share of any recovery.

Ponzio and Clubb will receive $450,000.