On October 8, 2026, the U.S. Attorney’s Office for the Middle District of Alabama announced that Ranga Ranganathan, Nielsen Hardware Corporation, and J&P Khamken Industries, Inc. agreed to pay $1 million to resolve allegations that they supplied the Department of War with Chinese-manufactured products and components in violation of the Buy American Act and federal military-procurement requirements.
Ranganathan acquired the assets of Alabama-based J&P Khamken in May 2017. The government alleged that, after the acquisition, the defendants sourced components and finished products from China and supplied them to the Department of War directly or through subcontracts while causing claims supported by false domestic-content and specialty-metals certifications.
The alleged conduct involved aircraft components, aerospace ground-support equipment, material-handling equipment, storage assemblies, and other machined products. China is not a qualifying country under the cited procurement provisions. The settlement also resolves qui tam claims brought by J&P Khamken’s founders and former employees, who will receive an undisclosed portion of the recovery.
Compliance Takeaways
The post-acquisition timing is notable. Government contractors acquiring a supplier should treat country-of-origin and specialty-metals compliance as an integration priority. Procurement, engineering, and contracts personnel should map inherited bills of material, suppliers, and certification workflows against active contracts. Prime contractors and subcontractors should also maintain component-level traceability, align supplier attestations with receiving records, and escalate substitutions or foreign sourcing before a claim or certification reaches the government.
GWB represents government contractors in connection with government investigations and False Claims Act litigation. If you need assistance with such a matter, contact us today.
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