Gould Accused of Overpricing, Suspended From U.S. Contracts

The U.S. government Friday suspended electronics manufacturer Gould Inc. from future government contracts for allegedly overpricing items sold to the government from 1982 to 1984, the company said.

After the announcement, Gould’s shares fell $1.25 in heavy turnover to close at $22.375 on the New York Stock Exchange.

Analysts said that if the company-wide suspension was upheld in full, it could hamper Gould’s planned sale of two defense-related businesses. The action was prompted by the dealings of Gould’s imaging and graphics division with the government.

Gould, a developer, manufacturer and seller of computers, electronics systems and electronic products, said that sales to the government last year accounted for about $126.4 million of its $908.8 million in revenue. The Rolling Meadows, Ill.-based company said it would contest the accusations made by the General Services Administration, which ordered the suspension. It also would seek to limit the ban to its imaging division so that its commercial and defense units could continue doing government business.

Gould said the government alleges that prices that the imaging division set for certain products sold under GSA contracts were higher than those for commercial customers.

E. F. Hutton analyst Edward White said that if the suspension on new government contracts lasts for a few weeks, as is usually the case with government suspensions of defense contractors, the impact on Gould would be small.