Teledyne Unit Is Barred From Getting Government Contracts

Teledyne Inc. said Thursday that a company subsidiary in Hawthorne, which pleaded guilty to 34 counts of federal fraud and agreed to pay a $17.5-million fine this month, was suspended from receiving new federal contracts.

The suspension, imposed by the Defense Logistics Agency, means that Teledyne Relays is not eligible to receive new government contracts, but it can continue working on existing contracts.

Teledyne admitted charges of falsifying tests on millions of electronic devices known as relays, widely used in aircraft, weapons and ships, over an eight-year period during the 1980s. As a result of the improper testing, it was alleged that the government can not be certain whether the relays meet stringent military requirements for reliability.

The relays unit, which employs 650, has annual sales of less than $40 million, the company said.

Teledyne issued a statement late Thursday saying it “accepts the suspension as part of a regrettable and embarrassing situation resulting from conduct contrary to the corporation’s code of ethics. The company is working with the government in an effort to end the suspension as soon as possible.”

Such suspensions are routine when a contractor is convicted of a felony. In past cases involving other companies, the suspensions have lasted anywhere from a few days to more than a year.