Don Savage
Headquarters, Washington, D.C.                                              
November 8, 1991
(Phone:  202/453-8400)                                                         
4:00 p.m. EST


RELEASE:  91-186

NASA SUSPENDS CONTRACTOR FOLLOWING FEDERAL INDICTMENT


     NASA's Assistant Administrator for Procurement Darleen A. 
Druyun today suspended Collins Commercial Avionics, Cedar Rapids, 
Iowa, a division of Rockwell International, and one employee and 
one former employee of Collins from further government contracts.  
The suspension follows a 15-count indictment, returned in the U. 
S. District Court in Cedar Rapids charging Rockwell International 
and the two individuals with defrauding NASA for several years on 
production and repair of Space Shuttle equipment.

     The indictment charges the two employees of Collins and other 
unnamed individuals with conspiracy, mail and wire fraud and false 
claims.  The letter of suspension states that they altered other 
employees' time cards by adding hours not actually worked, and 
billed NASA for work which was not performed under NASA contracts.  
The fraudlently inflated vouchers were then sent to NASA for 
payment.

     Collins and the two individuals named in the indictment will 
be excluded from doing business with the government pending 
further legal proceedings and investigations.

     NASA also put Rockwell International on notice that it is 
continuing its investigation into this matter.  Druyun said that 
if adequate evidence becomes known which indicates corporate 
involvement or negligent disregard on the part of Rockwell 
International in these activities, additional appropriate action 
will be taken.

     If convicted on all counts, Rockwell could face a maximum 
penalty of $7.5 million in fines, and the two individuals could 
each face 30 years in prison and a $1.5 million fine.

     The matter was investigated by agents from NASA's Office of 
Inspector General and the Defense Criminal Investigative Service 
and by auditors from the Defense Contract Audit Agency.

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