Northrop Loses $253M Row With Feds Over Worker Benefits

Law360, New York (January 28, 2014, 3:39 PM EST) -- A contractor appeals board recently upheld the government’s decision to disallow $253 million in costs from defense contractor Northrop Grumman Corp. for its employees’ postretirement benefits, finding that the contractor was accounting for these costs using a noncompliant accounting method.  

The Armed Services Board of Contract Appeals upheld the government’s disallowance of Northrop Grumman's unfunded postretirement benefit claims on Jan. 16, finding that Northrop Grumman’s use of the Deficit Reduction Act, or DRA, of 1984 method to measure and assign the costs under its government...
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