FOR IMMEDIATE RELEASE                                         CIV
FRIDAY, APRIL 26, 1996                             (202) 616-2765
                                               TDD (202) 514-1888

                                 
            ITT DEFENSE PAYS $643,633 TO SETTLE CLAIMS
           IT FAILED TO INFORM GOVERNMENT ON CONTRACTS


     WASHINGTON, D.C. -- A defense contractor will pay the United
States $643,633 to settle claims it overcharged the government on
several federal contracts by boosting overhead cost 15 percent
above the actual amount, the Department of Justice announced
today.
     Assistant Attorney General Frank Hunger of the Civil
Division said the settlement resolves allegations that a division
of ITT Defense & Electronics Inc. of McLean, Virginia, included
more than $300,000 in improper costs in contracts totalling $4.9
million it had with the National Aeronautics and Space
Administration and the Departments of Energy, of Army and of
Navy.  The overcharging was brought to the attention of the
government by ITT under DOD's voluntary disclosure program.  
     ITT informed the Defense Department that, between 1985 and
1988, the manager of its Tube and Sensor Laboratories in Fort
Wayne, Indiana, which was involved in work on electronic sensing
equipment for the government, included the extra overhead charge
in the contracts, but did not inform government negotiators.  ITT
was required to fully and accurately disclose all cost and
pricing data to the government under the Truth in Negotiations 
Act.      
     The NASA Office of Inspector General and the Defense
Contract Audit Agency investigated and confirmed the overcharge. 
The Civil Division negotiated the settlement with ITT.
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