NAVY ENDS BAN ON CONTRACTING WITH DYNAMICS
The Navy announced today that it had lifted a ban on signing new contracts with the General Dynamics Corporation, bringing five months of penalties against the company to a close. By ending the moratorium on new work at the company's Electric Boat division in Groton, Conn., and Pomona arms factory in Los Angeles, the Navy signaled a return to normal business after one of the most tumultuous disputes over weapon costs in the Pentagon's history. ''There was no pattern of corruption - they were simply doing what our regulations allowed them to do,'' said Everett Pyatt, Assistant Secretary of the Navy for Shipbuilding and Logistics, of General Dynamics' disputed contract charges. The charges were determined to be improper by Congressional investigators and Pentagon auditors.