THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, May 6, 1995 TAG: 9505060281
SECTION: FRONT PAGE: A11 EDITION: FINAL
SOURCE: STAFF AND WIRE REPORT
DATELINE: LOS ANGELES LENGTH: Short : 41 lines
Federal agents Wednesday conducted a series of raids to seize information about Navy contracts with the Northrop Grumman Corp. for an investigation of alleged false testing and improper billing.
The Justice Department is looking into whether Northrop cut corners to meet tough government schedule and cost requirements on one of the nation's premier fighters, the F/A-18 Hornet.
The Navy wants to move nine squadrons of F/A-18s - 163 aircraft - from Cecil Field, Fla., to Oceana Naval Air Station in Virginia Beach as a result of base closing actions.
Officials raided six sites in suburban El Segundo and Hawthorne, where portions of the F/A-18 and unmanned aerial training drones are assembled, Northrop spokesman Terry Clawson said.
``The government has not made us aware of what issues are involved,'' he said. ``They did impound documents.''
A Navy spokesman, Lt. Cmdr. Kenneth Ross, confirmed the raids, but said he had no details.
St. Louis-based McDonnell Douglas Corp. is the primary contractor of the F/A-18 Hornet and subcontracts some of the work to Northrop Grumman.
An earlier federal investigation involved another company that made components for the F/A-18. In January, Lucas Western Inc. paid $18.5 million in fines after pleading guilty to falsifying inspection records on gearboxes for F/A-18s and drive units for the Army's Multiple Launch Rocket System.
Government and industry sources say federal agents also are looking into allegations that Northrop made improper charges under its longstanding Navy contract to build an aerial target drone known as BQM-74C.
KEYWORDS: INVESTIGATION by CNB