Northrop Grumman Corp. paid $11.4 million to settle a Federal Acquisition Regulation penalty claim and related FCA allegations that it made improper charges to federal contracts. According to the allegations, Northrop charged to its federal contracts certain costs for deferred compensation awards to key employees, despite a 2002 settlement with the Defense Contract Management Agency (DCMA) limiting such inclusions. The FCA casealleged that Northrop passed along these costs in its indirect rates, causing the government to pay more than $1.9 million in unallowable costs.

Read the entire press release, “Northrop Grumman Corp. Pays $11.4 Million to Resolve Allegations that it Improperly Charged Costs to Government Contracts”