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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 »

Ranking: 21

ITT Industries

ITT Industries, Inc. supplies advanced technology products and services in several markets: fluid and water management, including water treatment; defense communication, opto-electronics, information technology and services; and electronic interconnects and switches. In 2011, the company split into three distinct, publicly traded companies. Its defense segment spin-off company became ITT Exelis.

Federal Contract $: $3862.6m

Total Number of Instances: 6

Total Misconduct dollar amount: $ 109.7m

Instances of Misconduct

1. Woodruff v. Goulds Pumps/ITT Industries (Worker's Compensation)

James Woodruff was an employee of Goulds Pumps when it was acquired by ITT Industries. After his retirement, he filed a claim for Workers Compensation through the New York Workers’ Compensation Board because of hearing loss he had incurred on the job. The Board upheld Woodruff’s claim for occupational hearing loss and held ITT Industries partly responsible for his compensation award.... more»

2. Illegally Exporting Secret Military Data Overseas (State Dept. Administrative Proceeding)

In an administrative proceeding, the U.S. State Department charged ITT Industries, acting through various subsidiaries, with violating the Arms Export Control Act and the Intermational Traffic in Arms Regulations in connection with the unauthorized export of night-vision products and space remote sensing technical data and defense services. Pursuant to a consent agreement, ITT agreed to pay a civil penalty of $8 million. See related ITT Industries instances, "Illegally Exporting Secret Military Data Overseas (Criminal Prosecution)" and “Illegally Exporting Secret Military Data Overseas (U.S. Army Compliance Agreement).”... more»

3. Bribery by Chinese Subsidiary

ITT Corp. and the Securities and Exchange Commission settled ITT’s alleged violations of the Securities Exchange Act of 1934 and the Foreign Corrupt Practices Act (FCPA) arising from payments its Chinese subsidiary, Nanjing Goulds Pumps Ltd. (NGP), made to Chinese government officials from 2001 through 2005 to influence the purchase of NGP water pumps. ITT, without admitting or denying the SEC’s allegations, consented to the entry of a final judgment ordering the company to pay nearly $1.7 million in disgorgement, interest and civil penalties.... more»

4. Hazardous Waste Violations (Santa Ana, CA)

“Under the terms of a hazardous waste settlement with the U.S. Environmental Protection Agency, electrical parts manufacturer ITT Industries must pay a $6,750 fine and fund a $25,400 project that will reduce chemical use and the amount of waste generated from its Santa Ana, Calif. plant, In January 2005, the EPA inspected the Santa Ana facility. Based upon a January 2005 inspection, the EPA alleges that ITT Industries committed the following hazardous waste violations: storing hazardous waste without a permit; failure to close containers of hazardous waste; failure to maintain adequate aisle space… ITT Industries has since rectified the violations”.... more»

5. Illegally Exporting Secret Military Data Overseas (Criminal Prosecution)

ITT Corp. agreed in March 2007 to pay $100 million and plead guilty to criminal violations of the Arms Export Control Act for allowing the transfer to China of classified night-vision technology. ITT, the Defense Department's leading manufacturer of night vision goggles, was accused of shipping night-vision technology and components without export licenses to an unidentified Singapore-based contractor who then shipped the technology to a Chinese optics firm around 2001. The $100 million penalty included a $2 million criminal fine, a $50 million deferred prosecution penalty (which is tied to the development of advanced night-vision technology), the forfeiture of $28 million to the United States as the proceeds of its illegal actions, and a $20 million monetary penalty paid to the Department of State. As part of the plea agreement, ITT also entered into a deferred prosecution agreement as to two other criminal counts. The government will defer prosecution of those counts for five years in return for ITT accepting full responsibility for its illegal actions and successfully implementing a remedial action plan. See related ITT Industries instances, "Illegally Exporting Secret Military Data Overseas (State Dept. Administrative Proceeding)" and “Illegally Exporting Secret Military Data Overseas (U.S. Army Compliance Agreement).”... more»

6. Illegally Exporting Secret Military Data Overseas (Army Compliance Agreement)

The U.S. Army Suspension and Debarment Official (SDO), on behalf of the Army, executed an Administrative Compliance Agreement with ITT Corp. as a result of ITT’s March 2007 guilty plea to violations of the Arms Export Control Act for allowing the transfer of classified night-vision technology to China. The agreement provides for Army oversight of ITT’s internal control systems, government contracts and ethics training; requires ITT to periodically report to the Army Procurement Fraud Branch its progress in meeting specific contractor responsibility milestones; and appoints John S. Pachter, a government contracts lawyer who began his legal career in the 1960s with the Army, as an “Independent Monitor” to oversee the administration of the agreement. See related ITT Industries instances, " Illegally Exporting Secret Military Data Overseas (State Dept. Administrative Proceeding)" and Illegally Exporting Secret Military Data Overseas (Criminal Prosecution).”... more»