Rockwell to Pay Government $260,000 After Admitted Defense Overcharging

SEAL BEACH —  Rockwell International Corp., after voluntarily admitting it overcharged the Defense Department on nine contracts, will pay the federal government $260,000 to avoid potential civil claims, the Justice Department said.

Rockwell failed to report the discounts it received from a vendor, Florida-based Encore Computer Corp., on computer components used in missile systems sold to the Air Force. As a result, federal officials did not have accurate cost information when negotiating contracts for the systems.

The defense contractor stepped forward in 1992 to report the overcharges through the Pentagon’s voluntary disclosure program, which allows smaller penalties for contract irregularities.

The nine contracts in question were for work on three Air Force missile projects--the Rail Garrison, Small ICBM and Peacekeeper missile programs. The payment shields Rockwell from potential liability and violation of the federal False Claims Act and the Truth in Negotiations Act.

“We made a voluntary disclosure of small overcharges and the claim has finally been settled,” a Rockwell spokesman said. “It’s an old case and now it’s resolved.”