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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 »
Northrop Grumman
Jordan v. Northrop Grumman (Installation of Substandard Parts in Navy Target Drones)
Date: 08/20/2003 (Date of Settlement)
Misconduct Type: Government Contract Fraud
Enforcement Agency: Defense – Navy
Contracting Party: Defense - Navy
Court Type: Civil
Amount: $20,000,000
Disposition: Settlement
Synopsis: Allegedly, Northrop Grumman knowingly installed substandard parts in target drones designed for the Navy. This was a violation of the False Claims Act 31 USC §§ 3729-3733, et. seq. The Navy found 32 drones to be defective in firing range operations. The matter was settled as part of a joint settlement with the case United States of America v. Newport News Shipbuilding, Inc. #1:03CV142-A. Of the $80 million that was paid as part of this joint settlement, approximately $20 million served as restitution for the defective drones.
