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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…

Cost Overruns

On March 13, 2002, a jury in Indianapolis, Indiana returned a verdict of in favor of Allison Gas Turbine for cost overruns on the engine exhaust liner and trailing edge of a discontinued prototype aircraft from a competitive award process, which occurred in the 1980s. On April 27, 2004, the Court of Appeals of Indiana affirmed the decision of the lower court. On September 28, 2004, Northrop Grumman’s appeal to the Supreme Court of Indiana was denied and the company paid $81 million in settlement of the judgment and interest.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Non-Governmental
Contracting Party
Non-Governmental
Court Type
Civil
Disposition
Settlement
Date of Settlement
9/24/2004
Contractors Involved Penalty
Total
Northrop Grumman $81,000,000
Further Information Released
SEC 10-K (pp. 98-99 of 118) 10/6/2006

Federal Contractor Misconduct Database