Northrop Grumman agrees to $11.4 million government settlement over disputed charges

http://www.washingtonpost.com/business/capitalbusiness/northrop-grumman-agrees-to-114-million-government-settlement-over-disputed-charges/2013/12/09/5ddefbe8-6120-11e3-bf45-61f69f54fc5f_story.html

The Justice Department said Monday that Falls Church-based Northrop Grumman has paid the government $11.4 million to settle allegations that the contractor improperly charged to its federal contracts certain costs for employees’ deferred compensation awards.

In a 2002 settlement with the Defense Contract Management Agency, Northrop had promised to limit the amount of deferred compensation included in proposals for new contracts, the Justice Department said in its statement. But the government found Northrop had broken this promise and should be assessed a penalty of twice the amount of the costs it should not have claimed.