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 »
Arms Export Control Act Violation (Transfer of Rocket Data to China)
Date: 03/04/2003 (Date of Settlement)
Misconduct Type: Import/Export
Enforcement Agency: State Dept.
Contracting Party: International
Court Type: Civil
Synopsis: Hughes Electronics Corp. and Boeing resolved civil charges of violating the Arms Export Control Act, agreeing to a $32 million settlement. The charges involved the transfer of rocket data to China in 1995 and 1996 by Hughes Space & Communications, which Hughes Electronics sold to Boeing in October 2000. Of the $32 million fine, $12 million was suspended "on the condition that over a five-year period, Boeing will apply $6 million and Hughes will apply $2 million to offset the costs associated with remedial compliance measures required in the consent agreement." The remaining $4 million of the suspended amount was credited back to Boeing and Hughes for compliance-strengthening measures they had already undertaken. POGO is unable to determine Boeing's share of the unsuspended $20 million civil penalty.