FOR IMMEDIATE RELEASE                                                   CIV
MONDAY, DECEMBER 12, 1994                                    (202) 616-2765
                                                         TDD (202) 514-1888

                                     
                     DEFENSE CONTRACTOR WILL PAY U.S.
              $1.8 MILLION TO SETTLE CIVIL CLAIMS

     WASHINGTON, D.C. -- Westinghouse Electric Corporation will
pay the United States a total of $1,883,030 for failing to tell
the Air Force of other sales of spare parts it made for the AWACS
radar system that would have lowered the $10.2 million the
military paid for the equipment, the Department of Justice
announced today.
     Assistant Attorney General Frank W. Hunger, in charge of the
Civil Division, said that during contract negotiations,
Westinghouse failed to tell Air Force negotiators that the
company also had contracted to supply AWACS radar equipment as
part of separate commercial sales of AWACS aircraft to the United
Kingdom and France.  By not disclosing the European sales,
Westinghouse avoided giving the Air Force a lower price based on
savings from the combined production under the contracts.
     In 1992, Westinghouse reported its conduct to the Department
of Defense's Inspector General under the Pentagon's Voluntary
Disclosure Program.  Shortly after disclosing its conduct,
Westinghouse paid $258,030 to the Air Force as a partial
reimbursement for overpricing the 1987 contract.
     The settlement announced today resolves Westinghouse's
potential liability to the government under several legal
theories and statutes, including the False Claims Act and the
Truth in Negotiations Act.  Westinghouse was not required to tell
the Air Force of the significance of the European sales.  
However, the government claimed the Air Force would have sought a
lower price if it had know about the sales because Westinghouse's
per unit costs would have been lower under the larger contract. 
       With credit for the $258,030 previously paid, Westinghouse
will pay an additional $1,625,000 within 30 days.

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