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L-3 Communications

Air Force Suspension

Date: 06/03/2010 (Date of Suspension)

Misconduct Type: Ethics

Enforcement Agency: Defense – Air Force

Contracting Party: Defense - Air Force

Court Type: Administrative

Amount: $333,000

Disposition: Suspend/Debar - Company

Synopsis: On June 3, 2010, L-3 Communications Corporation's Special Support Programs Division (L-3 SSPD) and its predecessor entity, L-3 Joint Operations Group (JOG), were temporarily suspended from receiving any new federal contracts or orders, including those under its Special Operations Forces Support Activity (SOFSA) contract. The notice of temporary suspension was issued by the Office of the Deputy General Counsel of the U.S. Air Force on June 4, 2010 and relates to an on-going governmental investigation of L-3 SSPD concerning the alleged inappropriate use of an e-mail system. According to media reports, the government is conducting a criminal probe into whether employees of L-3 SSPD unit used a military computer network to conduct e-mail surveillance of its employees and the employees of the federal government and other contractors. The Air Force terminated the suspension on July 27, 2010. Pursuant to an administrative agreement ending the suspension, L-3 agreed to pay the Air Force a $273,000 "contract credit" (representing the company's profit during the period of the inappropriate conduct) and $60,000 in administrative costs.