The Pentagon’s audit agency has concluded it can’t verify Northrop Grumman Corp.’s assertion that divesting its shipbuilding business and shutting one of its three yards will save the U.S. as much as $600 million.
Boeing Co. should lose as much as $271 million in government payments for satellite launch services because the No. 2 U.S. defense contractor violated federal accounting rules, the Pentagon’s audit agency said.
Northrop Grumman Corp. was paid at least $206,000 by Navy contracts officials for “questionable” travel billings to a golf outing and international air shows, according to an audit by the Pentagon’s inspector general.
Sikorsky Aircraft Corp. overcharged the U.S. Army for 28 UH-60 Black Hawk helicopter spare parts, including $2,393.41 for a plastic wiring box cover worth $181.70, according to the office of the Defense Department’s Inspector General.
DynCorp International Inc., the largest U.S. contractor in Afghanistan, should refund at least $2 million it was paid by the State Department for costs that “were either not authorized or for services not provided” for Afghan police training work, according to an audit.
The Pentagon is imposing a new contract provision which calls for withholding as much as 10 percent of payments to defense companies when it finds “significant” shortcomings in any of six business systems used to track performance and cost of weapons programs or services.