FOR IMMEDIATE RELEASE                                         CIV
MONDAY, JULY 31, 1995                              (202) 616-2765
                                               TDD (202) 514-1888

                                 
        UNITED STATES SETTLES WITH ROCKWELL INTERNATIONAL
        FOR $27 MILLION IN B1-B BOMBER OVERCHARGING CASE 

     WASHINGTON, D.C. -- Rockwell International will pay the
United States $27 million to settle allegations the company
knowingly failed to provide the United States with accurate,
complete and current information in negotiating multi-billion
dollar contracts in 1981 to develop the B1-B bomber and the first
nine B1-B bomber planes, the Department of Justice announced
today.
     Assistant Attorney General for the Civil Division Frank
Hunger said the United States alleged that Rockwell failed to
tell the government that changes in its corporate costs and a
change in California law reduced the company's costs of doing
business.  
     These cost reductions were not passed on to the government
despite Rockwell's specific agreement with the United States to
do so, Hunger said.  Rockwell, based in Seal Beach, California,
was awarded two contracts totalling $4.4 billion in 1982. 
     Hunger said the Department reached the agreement with
Rockwell after informing the corporation of its potential
liability under the False Claims Act.   The matter was
investigated by the Air Force Office of Special Investigations
and negotiated by the Department's Civil Division.    
     "We are pleased to reach this agreement with Rockwell which
corrects long standing inequities in the prices charged by
Rockwell on the affected contracts," Hunger said.
     Hunger commended the work of the pricing branch of 
Wright-Patterson Air Force Base in assisting in the resolution of 
the matter.
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