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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

Violations of the McNamara-O'Hara Service Contract Act

Date: 05/26/2004 (Date of Restitution Payment)

Misconduct Type: Labor

Enforcement Agency: Labor

Contracting Party: Defense - Army

Court Type: Administrative

Amount: $429,041

Disposition: Restitution

Synopsis: “Northrop Grumman Information Technology Inc. has paid $429,041 in back wages to 301 mechanics, technicians and range specialists working at Fort Hood, Texas, after a U.S. Department of Labor investigation revealed violations of the McNamara-O'Hara Service Contract Act (SCA)… The investigation covering the period March 1, 2001, to Sept. 30, 2003, found the company paid $1.39 per hour for health and welfare benefits, rather than the $1.92 to $2.15 hourly rate required by the SCA. In addition, the company paid lower hourly wage rates because some workers were misclassified in the occupation.”