Pentagon Holds Back Contractor Funds on Business Systems

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The Defense Department is withholding funds from some of its largest contractors -- led by Northrop Grumman Corp., Boeing Co. and BAE Systems Plc -- until they correct inadequate business systems.

The amounts held back include $19 million from BAE, $5.2 million from Boeing and $1.4 million from Northrop, according to Defense Contract Management Agency data as of Nov. 30. The agency said it also plans to withhold payments from Honeywell International Inc. and General Atomics.