The Air Force reduced its payments to a company.

Citing management and production deficiencies, the Air Force cut monthly contract payments to Fairchild Republic by 50%. This will cost the Long Island-based unit of Fairchild Industries about $4 million a month until improvements are made, Air Force Secretary Verne Orr said. Meanwhile, the Army announced that it was partially resuming monthly payments for overhead expenses to McDonnell Douglas Helicopter, a unit of McDonnell Douglas. A total ban imposed earlier is being modified because the firm “has made significant progress in revising its accounting procedures,” the Army said.