Pentagon Withdraws Poor Security Rating Imposed on Convair

Officials of the Convair Division of General Dynamics said Friday that the Defense Department has withdrawn the unsatisfactory security rating it had imposed on the company--a sanction that had called into question the company’s security clearance.

“Absolutely, we’re pleased, of course,” said Charles Brown, a spokesman for General Dynamics in San Diego. The unsatisfactory rating had been imposed last month after inspectors discovered about 20 documents missing from the giant defense-contracting operation.

The rating had barred Convair from receiving contracts for new programs involving classified information, Brown said. However, he said he knew of no programs for which Convair might have been eligible that were awarded since the rating was imposed.

“We were naturally concerned, and we made a major effort to comply with their needs and wishes . . . ,” Brown said, referring to the Defense Investigative Service, which routinely inspects defense contractors’ security procedures. “There was a whole range of actions that have to be taken, a comprehensive plan that addressed all the objections the DIS had.”

Brown said he could not provide details of that plan. He said Convair was informed Wednesday that the unsatisfactory rating had been lifted as a result of a re-inspection by the Investigative Service.

Convair manufactures Tomahawk sea-launched and ground-launched Cruise missiles, and the fuselage for the KC10 cargo tanker aircraft for the Air Force. It is also involved in various research and development programs. Its security clearance also covers General Dynamics’ space systems division, which produces Atlas and Centaur space-launch vehicles.

Brown said Convair employs 12,000 people in San Diego.

According to published reports, the investigators found that Convair had failed to adequately protect classified documents and hardware. Stanley C. Pace, chief executive officer of General Dynamics, said last month that the company was taking “strong corrective action” aimed at resolving the security problem.

Nevertheless, Brown said he could not say Friday whether the company had determined how the 20 documents came to be missing. “I don’t think it’s useful to talk about document counts,” he said.

The unsatisfactory security rating joined a host of problems troubling General Dynamics, which has been confronted with charges of fraud and lax security. In December, after the indictment of three General Dynamics executives and a former top company official on fraud charges, the Pentagon barred the giant defense supplier from obtaining new contracts from the federal government.