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Two O.C. Defense Firms Criticized for Expenses : Audit: GAO says Sparta, SRS Technologies billed U.S. for alcohol, trips to Mexico, Caribbean and Hawaii.

March 04, 1994|DEAN TAKAHASHI | TIMES STAFF WRITER

Two GAO audits turned up a total of $4.9 million in costs that were questionable or illegal. That amount was in addition to $4.4 million in charges that the Pentagon's own contract watchdog agency had rejected.

The first study of six small contractors, including SRS Technologies and Sparta, found $2 million in illegal or questionable expenses in addition to $1 million rooted out by Pentagon contract auditors.

The other companies are Foster-Miller Inc. in Waltham, Mass.; Sippican Inc. in Marion, Mass.; Electromagnetic Sciences Inc. in Norcross, Ga.; and MA-COM Inc. in Wakefield, Mass.

The second GAO study examined two large contractors. Here, auditors identified $2.9 million in illegal or questionable charges in addition to $3.4 million uncovered earlier by the Pentagon. The two larger companies were E-Systems Inc. of Dallas and McDonnell Douglas Corp. of St. Louis.

Sparta Inc. at a Glance

* Founded: 1979

* Headquarters: Laguna Hills

* President: Wayne Winton

* Employees: 640

* In Orange County: 42

* Business: Engineering services contractor involved in ballistic missile ("Star Wars") and other defense engineering projects

* 1993 sales: $80 million

* Alleged illegal billings: $2,300 in meals for spouses; $27,500 for personal use of company car; $1,400 for alcoholic beverages; $102,000 in inadequately documented consultant fees

* Questionable charges: $46,000 for trip to Grand Cayman Island; $102,000 to send 151 employees, accompanied by 112 spouses or guests, to annual meeting in Jamaica; $49,000 for trip to Mexico; $135,000 and $229,000 for trips to Hawaii

Sources: Dun & Bradstreet, U.S. Congress; Researched by JANICE L. JONES / Los Angeles Times

SRS Technologies at a Glance

* Founded: 1970

* Headquarters: Newport Beach

* Chairman: Mohindar S. Sandhu

* Employees: 370

* In Orange County: 28

* Business: Computer integrated systems design and systems engineering

* 1993 sales: $30.2 million

* Alleged illegal billings: $10,000 for personal use of company car; $1,400 in alcoholic beverages; $37,000 in inadequately documented consultant costs; $14,700 in legal costs in a lawsuit against the government

* Questionable charges: $44,000 to send 40 employees and one consultant to Bermuda

Sources: Dun & Bradstreet, U.S. Congress; Researched by JANICE L. JONES / Los Angeles Times

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