FOR IMMEDIATE RELEASE CIV

FRIDAY, AUGUST 5, 1994 (202) 616-2765

TDD (202) 514-1888

TEXAS INSTRUMENTS PAYS U.S. $5.2 MILLION FOR OVERCHARGES

WASHINGTON, D.C. -- Texas Instruments Inc. of Dallas, Texas,
today paid the United States $5.2 million to settle allegations
one of its divisions overcharged the government on contracts for
guided missiles sold to the Navy, the Department of Justice
announced today.
Frank W. Hunger, Assistant Attorney General in charge of the
Civil Division, said TI told the Department of Defense about the
overcharges under DOD's Voluntary Disclosure Program, which
encourages defense contractors to report apparent misconduct in
their business relationships with the government.
In 1988, TI told DOD that its Defense Systems Electronics
Group improperly allocated labor charges among subcontracts for
the Harpoon seeker, a device that automatically searches for and
homes-in on ships. In 1990, TI disclosed that TI-DSEG
misallocated subcontractor labor charges for a new generation of
the seekers.
TI paid the government $5 million today. It previously had
paid the government $230,750 for a total of $5,230,750.
The Defense Criminal Investigative Service, Defense Contract
Audit Agency and the Defense Logistics Agency investigated the
allegations and confirmed the overcharges.
The DSQ-28 Harpoon radar seeker is used in Harpoon tactical
cruise missiles. The TI subcontractor for the missile was
McDonnell-Douglas Astronautics Corporation, now McDonnell Douglas
Missile Systems Company, of St. Louis, Missouri. McDonnell
Douglas was not involved in the overcharges.
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