The electronics division of Teledyne Industries Inc. has been suspended from bidding on or receiving government contracts because of its indictment in a federal probe of defense contract fraud, the Pentagon says.
The suspension by the Defense Logistics Agency also bars three current employees and one former employee of the Teledyne Electronics Division from working on government contracts, the Pentagon said.The suspension will not affect contracts already held by the firm. A spokesman for the federal agency, Larry Wilson, said Teledyne Electronics currently has active military contracts won in past years totaling $223.2 million.
According to fiscal 1987 figures, the latest available, the parent Teledyne Inc. is the nation's 46th largest defense contractor, receiving $359.4 million in Pentagon business that year.
Berkley Baker, a spokesman for Teledyne, said the company had been notified by the DLA of the suspension but would have no additional comment. He said the electronics division "accounts for about 2 percent of our annual revenues, or in the $75 million range."
Wednesday's suspension bars the one Teledyne division from receiving any government contracts - defense or otherwise - and also bars the unit from performing "government-approved subcontracting."
The Pentagon identified the three suspended employees as George H. Kaub, Eugene R. Sullivan and Dale Schnittjer. The former employee was identified as Michael Savaides.
Each individual is the subject of criminal charges stemming from the two-year probe into defense fraud known as "Operation Ill Wind."
Kaub, Sullivan and Schnittjer were charged on Jan. 6 along with Teledyne Electronics in the first indictment to spring from the federal investigation. Savaides pleaded guilty to a charge of conspiracy to commit bribery.
In Greenlawn, Long Island, N.Y., a spokesman for Hazeltine Corp., a division of Emerson Electric Co., said Hazeltine had been told by the Navy that it also is temporarily suspended from competing for and receiving new government contracts.
The Navy took the action as a consequence of Hazeltine's plea of guilty last week to charges of conspiracy to defraud the United States, conversion of government property and making false statements to the government.
Hazeltine, which had revenues of approximately $158 million last year, said the company is actively discussing with the Navy the steps needed to lift the suspension in the shortest possible time, according to the spokesman.