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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…

Improper Employee Stock Incentive Program Costs

In July 2006, the government fined Northrop Grumman $33.7 million for allegedly billing the government for unallowable costs associated with the company’s employee stock incentive program during fiscal year 2003. The government claimed that Northrop calculated stock program costs using a performance factor of 150 percent rather than the 75 percent rate to which the parties had earlier agreed, which resulted in $26.8 million in questioned costs. Northrop Grumman filed a lawsuit in 2007 disputing the fine, to which the government filed a False Claims Act counterclaim.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
Defense - General
Court Type
Civil
Disposition
Pending
Date of Counterclaim
7/26/2011
Contractors Involved Penalty
Total
Northrop Grumman $0
Further Information Released
Counterclaim (see p. 18) 7/26/2011

Federal Contractor Misconduct Database