Pentagon Lifts Suspension of 2 Litton Units

The Pentagon partially lifted on Thursday its suspension of Litton Industries that it imposed July 16, permitting two of the firm’s key defense contracting units to resume bidding on new military work.

Assistant Navy Secretary Everett Pyatt lifted the suspension against Litton’s advanced electronics group and marine products group, which conduct the preponderance of the Beverly Hill’s-based firm’s military work.

Litton pleaded guilty on July 22 to a 321-count indictment and agreed to repay $6.3 million and pay a criminal fine of $3 million. Other civil penalties could bring the total to $15 million.

Litton was charged with inflating the cost of aircraft instrumentation and radar equipment at its Clifton Precision’s special services division, which is part of a Litton group that remains under suspension. The suspension remains in effect for Litton’s component products industrial system group, the industrial automation group and resources exploration services.

Litton agreed to pay all costs associated with the suspension and the establishment of corrective actions, which include auditing, ethics and monitoring programs.

“We got no new business during the suspension and we have lost some significant business during the suspension,” Litton spokesman Robert Knapp said. “It is bookings that we have lost and will continue to lose until the suspension is fully lifted. As for loss of sales, that would come later.”