Menu

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 Deferred Compensation Costs

Northrop Grumman paid the government $11.4 million to settle allegations that it improperly charged to its federal contracts certain costs for employees’ deferred compensation awards. In a 2002 settlement with the Defense Contract Management Agency, Northrop promised to limit the amount of deferred compensation included in proposals for new contracts. The government alleged that Northrop had passed along nearly $2 million in improper costs in hundreds of 2004 contracts, in violation of the Federal Acquisition Regulation and the False Claims Act, as well as the terms of the 2002 settlement.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
Defense - General
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
12/9/2013
Contractors Involved Penalty
Total
Northrop Grumman $11,400,000
Further Information Released
DOJ Press Release 12/9/2013

Federal Contractor Misconduct Database