General Dynamics Ban Lifted

The Defense Department lifted its suspension today against the General Dynamics Corp., allowing it to resume bidding on contracts after the giant firm pledged to reform its business practices and to reimburse the Pentagon $500,000 on costs incurred. The giant St. Louis-based contractor was barred from receiving any new government contracts because of a federal indictment charging the firm and four of its present and former officers with defrauding the Army of $3.2 million on a $39-million contract to build two prototypes of the Sgt. York anti-aircraft gun.