The government has taken the rare action of cutting a unit of L-3 off from all new business while it investigates alleged misuse of an email system and has threatened the broader company, saying it is “considering” suspending the parent subsidiary as well.
A source with long experience of black contracting, and who knows L-3 reasonably well, characterized the suspension as “a very serious matter” for both the government and the company. This source said that such suspensions usually occur “because the contracting agency does not feel they have gotten the attn of the company’s senior leadership.”
We bet that L-3’s senior leadership is fully engaged now.
Here’s the company’;s announcement:
L-3 Communications Corporation received notice that its Special Support Programs Division (L-3 SSPD, formerly known as L-3 Joint Operations Group (JOG)) has been temporarily suspended from receiving any new contracts or orders from U.S. Federal Government agencies, including under its Special Operations Forces Support Activity (SOFSA) contract.
The notice of temporary suspension was received from the Office of the Deputy General Counsel of the U.S. Air Force on June 4, 2010 and relates to an on-going governmental investigation of L-3 SSPD concerning the alleged inappropriate use of an e-mail system by L-3 SSPD employees. L-3 SSPD is continuing to perform on outstanding orders under its existing contracts, including the SOFSA contract. The temporary suspension will remain in effect until lifted at the discretion of the Air Force.
The Air Force has also notified L-3 that it is considering whether a suspension of L-3 Communications Integrated Systems L.P., as the parent of L-3 SSPD, is also warranted.