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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…

Bagley v. TRW Inc. (Cost Mischarges)

Northrop-Grumman paid $111.2 million to settle claims that TRW Inc, a company acquired by Northrop in December 2002, had violated the False Claims Act 31 USC §§ 3729-3733, et. seq. The government alleged that “In 1991 and 1992, TRW mischarged two costs – independent research and development (IR&D), as well as bid and proposal – associated with its attempt to enter the space launch vehicle business. According to the complaint, if TRW had correctly accounted for those costs, the federal government would not have reimbursed the company or them, because in 1991 and 1992 TRW exceeded the government’s ceiling on what it would pay for IR&D and bid and proposal costs.” It was also alleged that TRW “mischarged the costs of fabricating and testing a prototype satellite solar array wing as ‘capital equipment’ rather than as IR&D” in order to avoid the government ceiling on IR&D expenditures.

Misconduct Type
Cost/Labor Mischarge
Enforcement Agency
Multiple Agencies
Contracting Party
Multiple Agencies
Court Type
Civil
Disposition
Settlement
Date of Settlement
6/9/2003
Contractors Involved Penalty
Total
Northrop Grumman $111,200,000
Further Information Released
DOJ Press Release 7/4/2006
Northrop Grumman Press Release 7/4/2006

Federal Contractor Misconduct Database