DoD contractor-crackdown to include General Atomics

The Pentagon is withholding monies from some of its largest contractors – with plans ahead for General Atomics, with manufacturing facilities in Tupelo, Miss. – that includes $19 million from BAE Systems. The DoD action signals a regulations-crackdown that began in 2011 which require contractors to meet five internal-systems standards including showing progress in meeting cost and schedule goals for their defense-awarded contracts. The rule is designed to protect the government against firms overbilling. Among other defense firms affected is Boeing (at $5.2 M) and Northrop Grumman ($1.4M). Source: Bloomberg, Jan. 27, 2014.