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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 »
Northrop Grumman
United States v. Newport News Shipbuilding (Research and Development Mischarge)
Date: 08/20/2003 (Date of Settlement)
Misconduct Type: Cost/Labor Mischarge
Enforcement Agency: Defense – Navy
Contracting Party: Defense - Navy
Court Type: Civil
Amount: $60,000,000
Disposition: Settlement
Synopsis: Northrop Grumman paid $60 million to settle allegations that, Newport News Shipbuilding (NNS), a subsidiary acquired in December 2001, “mischarged as Independent Research and Development (IR&D) its costs for the design and development of double hulled tankers that the shipbuilder had contracts to build for commercial customers.” This was an alleged violation of the False Claims Act False Claims Act 31 USC §§ 3729, et. seq. The payment came as part of a joint settlement with the case U.S. ex rel. Jordan v. Northrop Grumman Corporation (CD CA No. 95-2985-ABC). Total restitution for the two cases amounted to $80 million.
