Convair Clearance Reported in Jeopardy : Pentagon Cites Security Problems for Employer of 9,400 in San Diego
The Convair division of the General Dynamics Corp. still holds its government security clearance, but Pentagon officials said Monday that flaws discovered in a recent audit could result in a loss of clearance or other disciplinary sanctions against Convair, a major employer in San Diego.
The question arose Sunday with a New York Times report, based on internal General Dynamics memos, that said Convair was losing its clearance because it had not adequately protected classified documents. A loss of security clearance would mean no new contracts could be awarded to Convair, the newspaper said.
Word of the security deficiencies comes at a time when General Dynamics--the nation’s third-largest defense contractor--is being increasingly criticized in Washington over allegations of fraud, over-billing the government and slipshod security.
The San Diego-based Convair division produces Tomahawk cruise missiles--an important component of the U.S. defense arsenal--and the division is also working on a highly secret cruise missile designed to be nearly invisible to radar. Convair employs about 9,400 people at several sites in the San Diego area.
On Monday, a Pentagon spokesman declined to discuss the possibility that Convair was about to lose its clearance.
“The only thing I can say is that as of today, Convair still holds a clearance,” said spokesman Glenn Flood.
However, another source who asked not to be identified said the issue of sanctions--including a possible loss of clearance--was still under consideration. But he added that no decision had been made to strip the plant’s clearance.
“They just haven’t gotten that far yet,” the source said.
Meantime, officials of General Dynamics say they have launched an internal security review aimed at correcting security problems identified by Pentagon investigators at Convair. Company executives predicted that their review and subsequent actions to tighten security would satisfy the Pentagon that the San Diego division should not be stripped of its government clearance and could continue receiving government contracts.
The security problems were identified during a recent Pentagon audit that revealed that about 20 classified documents were missing, said John E. McSweeny, Convair’s vice president and general manager. The contents of the documents remains unspecified.
The security review will result in disciplinary action wherever laxity is found within Convair, General Dynamics chairman Stanley C. Pace said Sunday. In addition, Pace said the contractor will conduct a companywide review of security at its divisions nationwide.
Pace said the Pentagon audit “has sensitized us to the need to tighten security, so we’re checking with other General Dynamics divisions with regard to what happened at Convair last week.”
The Pentagon’s audit followed a December order by the Navy suspending all divisions of St. Louis-based General Dynamics from receiving new government contracts because of the indictment of three current company executives and one former company official on fraud charges in connection with a weapons project.
It was the second time in a year that General Dynamics has been barred from getting new defense contracts. A three-month suspension over disputed contracting practices was issued in May, 1985.
