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DOJ: Alaska co. used cheap steel in McChord fences

An Alaska company has agreed to pay $822,000 for using cheap steel in security fences at McChord Air Force Base.

Chugach Management Services Inc. did not admit wrongdoing in the settlement reached Monday with the Defense and Justice Departments.

The company is an Alaska Native corporation based in Anchorage. The Seattle U.S. attorney's office said in a news release that it was awarded a contract for four fencing projects at McChord, near Tacoma. In each project the company billed the government for high-grade steel but actually used steel that was far lighter and cheaper.

Prosecutors say the $822,000 fine is double the amount the company overbilled the government.