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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

NRO Satellite False Claims

Northrop Grumman Corp., its Northrop Grumman Space and Mission Systems Corp. subsidiary, and its predecessor, TRW Inc., agreed to pay $325 million to settle False Claims Act allegations that Northrop and TRW provided and billed the National Reconnaissance Office (NRO) for defective microelectronic parts known as Heterojunction Bipolar Transistors (HBTs) manufactured by TRW from 1992 to 2002. (Northrop Grumman acquired TRW in 2002). As a result, the government alleged that Northrop and TRW integrated into NRO satellite equipment certain defective HBTs. The government also claimed that Northrop and TRW made misrepresentations about and concealed certain material facts regarding the reliability of the HBTs. The settlement resolved a whistleblower lawsuit filed in 2002 by Robert Ferro, an employee of the Aerospace Corporation, a federally funded research lab.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Defense – General
Contracting Party
Defense - General
Court Type
Civil
Disposition
Settlement
Date of Announcement
4/2/2009
Contractors Involved Penalty
Total
Northrop Grumman $325,000,000
Further Information Released
DOJ Press Release 4/7/2009
Northrop Grumman Press Release 4/7/2009

Federal Contractor Misconduct Database