SOUTHLAND : FBI Raids Northrop FA-18 Plants
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FBI agents today raided Northrop Corp. plants in Hawthorne and El Segundo where fuselage parts are built for the Navy’s FA-18 fighter-bomber.
Northrop spokesman Ron Owens confirmed the searches. “We are working with them in their search, and that is all that I can comment upon,” he said.
FBI Special Agent Fred Reagan said he could not comment.
McDonnell Douglas is the prime contractor for the carrier-based FA-18. Northrop assembles the center and aft sections of the plane as a subcontractor under what is known as a sole source, fixed-price agreement. That means only one contractor is considered qualified to do the work, and it is not subject to competitive bidding.
In April, the Justice Department sued Northrop, claiming the company had fraudulently fattened bills submitted to the Navy for work on the FA-18. The department decided not to file criminal charges as part of a deal with Northrop last February involving a guilty plea in another fraud case.
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