FOR IMMEDIATE RELEASE                                         CIV
WEDNESDAY, JUNE 14, 1995                           (202) 616-2765
                                               TDD (202) 514-1888

                                                                 

              DEFENSE CONTRACTOR AGREES TO PAY U.S.
                $260,000 TO SETTLE CIVIL CLAIMS  

     WASHINGTON, D.C. -- Rockwell International Corporation will
pay the United States $260,000 to settle potential civil claims
for overcharging the Department of Defense on an Air Force
contract by failing to tell federal contract negotiators about a
discount it received from one of its suppliers, the Department of
Justice announced today.
     Assistant Attorney General Frank W. Hunger, in charge of the
Civil Division, said that during contract price negotiations
Rockwell gave the Air Force proposals that failed to account for
discounts Rockwell received from its vendor, Encore Computer
Corporation.  By withholding the information, Rockwell avoided
giving the Air Force a lower price on three missile programs--the
Rail Garrison, Small ICBM, and Peacekeeper--Rockwell built for
the Air Force under nine separate contracts.  Rockwell, based in
Seal Beach, California, was required to provide the information.
     In 1992, Rockwell reported its conduct to the Department of
Defense's Inspector General under the Pentagon's Voluntary
Disclosure Program.  
     The settlement resolves Rockwell's potential liability under
several legal theories and statutes, including the False Claims
Act and the Truth in Negotiations Act.
     Rockwell will pay the $260,000 within 30 days of today's
settlement. 
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95-333