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DC Says NO to Northrop Grumman & Corporate Welfare and Wins!

April 21st, 2010, Washington DC—A DC coalition of small businesses, watchdog groups and peace activists quashed a $25 million DC City Council proposal to entice defense contractor Northrop Grumman to the nation's capitol.

Earlier this year, a major struggle was brewing in the nation's capitol about the city's proposal to offer$25 million in subsidies and grants to the mammoth defense contractor Northrop Grumman. The legislation was originally sponsored by seven of the City Council's 13 members and supported by Mayor Adrian Fenty.

The taxpayer giveaway incensed small businesses, watchdog groups and peace activists, who formed a new coalition called CENTS—Coalition to End Needless Tax Subsidies. They met with the mayor and council members, testifying at hearings, holding press conferences and educating the public. Our message was clear: This community is not for sale. One by one, council members began to reconsider their position. At an April 18 gathering for DC Emancipation Day, City Council Chair Vincent Gray told organizers that the “proposal is dead.”

“This is a victory for the people against a corporate behemoth,” said CODEPINK cofounder Medea Benjamin, who was one of the main organizers. CODEPINK had generated over 1,000 emails or calls to each Council member supporting the bill. “Working together in coalition, we proved that we can stop corporate giveaways. Northrop Grumman should be free to move its headquarters wherever it wants, but not at taxpayer expense.”

Learn more about our victory by reading our press release!

Northrop Marketing Vid: We're Evil, Omnipresent

Articles & Press

Learn more about Northrop Grumman

  • Northrop Grumman was the third largest Federal contractor in 2009 with over $17 billion in mostly defense and aerospace contracts. (
  • Since 1995, the company has accrued over $820 million in fines, according to the Project on Government Oversight (

The Company's Long History of Fraud, Overcharges, etc. Includes:

  • In 2009, Northrop Grumman and TRW agreed to pay $325 million to settle allegations that the company improperly billed the National Reconnaissance Office (NRO) for defective microelectronic parts.
  • In 2008, Northrop Grumman agreed to pay $400,000 to settle alleged violations of Export Administration Regulations that occurred from 1998 to 2002.
  • In 2008 Northrop Grumman agreed to pay $15 million to settle alleged violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) for the sale of modified LTN-72 and LTN-92 aircraft navigation systems between 1994 and 2003.
  • In 2009, the Virginia Joint Legislative Audit and Review Commission (JLARC) reported problems with a $2 billion IT contract, including cost overruns, missed deadlines and network and computer outages at state offices.
  • In 2007, Northrop Grumman agreed to pay $8 million to settle charges it failed to test tubes used in night vision goggles and sniper scopes used by U.S. troops in Afghanistan and Iraq.
  • In 2007 Northrop Grumman paid $60 million to settle accusations that the company used automated fingerprint technology without permission.
  • In 2005, Northrop paid $ 62 million to settle charges of fraud originally filed by company whistleblowers who said Northrop “routinely submitting false contract proposals,” “concealed basic problems in its handling of inventory, scrap and attrition,” and “lied to the government during a ‘Critical Design Review'” for a B-2 Bomber radar jamming device. (Robinson v. Northrop Grumman)
  • In 2003, the company paid $60 million to settle allegations that Newport News Shipbuilding mischarged costs for double hulled tankers it was building for commercial customers.
  • In 2003, Northrop-Grumman paid $111.2 million to settle claims that TRW overcharged the government in association with its attempt to enter the space launch vehicle business. (Bagley v. TRW).
  • According to the GAO, in 1996 Northrop's Hawthorne Division paid $1.5 million to the government to settle a matter involving “defective pricing.”
  • In 2004 Northrop agreed to pay $81 million to settle allegations of fraud associated with cost overruns on an engine exhaust liner.
  • In 1999, Northrop Grumman paid $500,00 to settle allegations that it “falsely certified inspection checklists for military and civilian aircraft.” (DoD IG)
  • In 1997, Northrop Grumman agreed to pay $34.8 million to settle civil charges filed by the Air Force for overbilling the government on a B-2 bomber contract.
  • In 2003, the Canadian Transportation Agency suspended the company's charter license due to an invalid certificate of insurance.
  • In 2003, Northrop Grumman paid $20 million as restitution for knowingly installed substandard parts in defective target drones designed for the Navy.
  • In 1999, Northrop Grumman paid $145,250 to the government to settle a matter involving "cost/labor mischarging."
    In 1998, Ingalls Shipbuilding (Northrop Grumman) paid the Navy $2.25 million to settle allegations of accounting fraud and “improper billing for work not performed.”
  • In 2000, Northrop Grumman paid $750,000 “to settle claims arising from its failure to properly manufacture more than 5,000 replacement parts it made for use on military aircraft.”
  • In April, 1996, Northrop Grumman paid $100,000 to settle charges of “procurement fraud.” According to the GAO, Northrop's Aircraft Division paid $4,000,000 to settle “procurement fraud" charges less than a year earlier.
    Environmental, Labor and Safety Violations
  • In 2003, Northrop Grumman Ship Systems paid $9,100 and “agreed to bring its Hazardous Waste Permit into full compliance regarding proper storage, labeling and handling of hazardous waste related to the [company's] facility located in Pascagoula.”
  • In 2009, Northrop Grumman Space & Mission Systems agreed to spend $21 million to clean up contaminated groundwater at the San Gabriel Valley, CA Superfund Site, and reimburse over half a million in previous cleanup costs to EPA and the California Department of Toxic Substances Control.
  • In 2008, Northrop Grumman paid $5,000 for violating federal safety standards when an employee died after falling of an aircraft carrier at its Newport News shipyard, while working on its ventilation system without a body harness.
  • In 2003, Northrop Grumman agreed to pay $47,000 up front to California EPA (with costs up to $768,317) to address a hazardous waste release.
  • In 2002, Northrop Grumman paid $131,000 for 33 serious safety violations after a welder was crushed between two ship modules at the company's Gulfport facility.
  • In 2003, Northrop's Space Technology facility in Redondo Beach, CA paid $15,000 to settle 64 alleged air permit violations. (SCAQMD)
  • In 2001, Northrop Grumman paid $2.15 million in backpay to 61 employees who filed unfair labor practices charges with the NLRB.

Political Influence-Peddling

  • Northrop Grumman is no stranger to the shadier side of Washington deal-making. In the early 1970s, Northrop Corp. chairman Thomas Jones was embroiled in controversies over illegal campaign contributions to Richard Nixon's reelection campaign, while allegations surfaced that some $30 million in bribes had been paid to foreign governments to win orders for fighter jets. A few years later, reporters revealed that company executives regularly entertained Pentagon officials and members of Congress at a hunting lodge on the eastern shore of Maryland.

Compiled by:
Charlie Cray, Center for Corporate Policy,

Notable Corporate Chronologies (Gale Group); U.S. Department of Justice;
Project on Government Oversight Contractor Misconduct Database;