P. M. BRIEFING : GE Resumes Defense Work
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SYRACUSE, N.Y. — General Electric Co.’s Aerospace operations in Syracuse began shipping products to the Navy and Air Force today after defense department officials determined that the company had corrected serious procedural and quality control problems.
Defense Contract Administration Services personnel returned to inspecting equipment ready for delivery, lifting the government sanctions that held up more than $16 million in partial payments to GE, said Michael R. Flannery, defense contract administrative contracting officer in Syracuse.
The U.S. Department of Defense had allowed only essential products to leave GE since February, when the company was caught violating a number of defense department regulations. The Syracuse operation was allowed to continue limited manufacture of products.
The company received the severe and rare sanctions because it was found to be mixing production on contracts for both the U.S. military and foreign governments, whose specifications were less stringent, on the same production line.
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