Defense: Cutting Down on Overhead

Cutting Down on Overhead

With the speed of a Tomahawk missile, the charges of improper billings against General Dynamics, the nation's largest defense contractor, continue to mount. Last week the Pentagon announced that a team of 20 auditors had determined that the company had overcharged the Government by $244 million during the past twelve years for "overhead" and administrative costs. The Pentagon has already withheld $120 million in payments and intends to demand the additional $124 million "to adequately protect the Government's interest." The new figures represent another disclosure in a spreading investigation that has turned up such charges to the Government as country- club...

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