Donald L. Savage
Headquarters, Washington, D.C.                                                
January 15, 1992
(Phone:  202/453-8400)


RELEASE:  92-7

NASA LIFTS SUSPENSION OF FIRM FOLLOWING SETTLEMENT


     NASA's Assistant Administrator for Procurement Darleen A. 
Druyun today lifted the suspension of the Collins Avionics and 
Communications Division (CACD) (initially cited as Collins 
Commercial Avionics), Rockwell International Corp., Cedar Rapids, 
Iowa.  The suspension was imposed Nov. 8, 1991, following a 
15-count indictment charging the firm and two individuals with 
mail fraud and submission of false claims.  The individuals 
allegedly altered time cards by adding hours not actually worked 
and then billed NASA for work which was not performed under NASA 
contracts.

     The settlement agreement between NASA and CACD requires the 
firm to enhance its efforts to educate and train its employees in 
proper time keeping procedures and to emphasize the need for 
honesty and integrity in performing government contracts.  The 
agreement also provides for CACD management to review and monitor 
the firm's time keeping and verification system.  In addition, the 
president of CACD will annually certify compliance with the 
agreement and report to NASA the results of its compliance 
reviews.  The agreement will be in place for 3 years.

     The lifting of the suspension will reinstate the firm and 
render it eligible to propose on and receive government contracts.

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