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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Navistar Defense LLC
Previously known as International Military and Government LLC, Navistar Defense is an affiliate of Navistar International Corporation (formerly International Harvester Company), producer of a wide range of trucks and buses for commercial and military markets. Navistar designs and builds trucks for use in Iraq and Afghanistan by the U.S. Army and Marine Corps, including the Mine Resistant Ambush Protected vehicle (MRAP).
Federal Contract $: $1406.7m
Total Number of Instances: 3
Total Misconduct dollar amount: $ 3.6m
- Lobbying Info (Navistar Int'l)
- Political Activity (Navistar Int'l)
- Press Page (Navistar Int'l)
- SEC 10K (Navistar Int'l)
- Contracting Information
- Website
Instances of Misconduct
1. Diesel Engine Manufacturer Clean Air Act Settlement
On October 22, 1998, the Department of Justice and the Environmental Protection Agency announced a Clean Air Act settlement with seven major manufacturers of diesel engines, including Navistar International Transportation Corp. The companies resolved claims that they violated the Act by installing so-called “defeat devices” on heavy duty diesel engines – computer software that turned off the engine emission control system during highway driving. The settlement, which included $83.4 million in total civil penalties, required the implementation of tighter emission limits for diesel truck engines manufactured by the companies. Navistar, alleged to have produced 78,000 engines containing defeat devices since 1994, agreed to pay a civil penalty of $2.9 million and contribute $350,000 to an environmental testing program to be conducted with the other settling companies.... more»
2. Waukesha, WI Environmental Violations
The Wisconsin Department of Natural Resources issued Navistar a notice of violation regarding the operation of its foundry facility in Waukesha. WDNR alleged Navistar violated state environmental regulations concerning implementation of storm water pollution prevention plans. In December 2007, the state and Navistar reached a settlement on this and another matters involving the facility for less than $1 million.... more»
3. SEC Investigation of 2007 Financial Restatement
In October 2009, Navistar International announced it had reached a tentative settlement with the U.S. Securities and Exchange Commission (SEC) over its investigation into the company’s 2007 restatement of its financial results for 2002 through the first three quarters of 2005. Under the settlement, Navistar did not admit or deny any wrongdoing, and company chairman and CEO Daniel Ustian agreed to return part of his 2004 bonus. In August 2010, the SEC issued a cease-and-desist order against Navistar, Ustian, former CFO Robert C. Lannert and several former senior accounting staff, who agreed to pay a total of $362,500 in civil penalties. Navistar itself was not assessed any fines or penalties.... more»
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