A chart in yesterday's Federal Report incorrectly identified the source of the names of defense contractors whose public relations expenses were challenged by Pentagon auditors. The source was Rep. Fortney H. (Pete) Stark Jr. (D-Calif.).
These are public relations expenditures by defense contractors that have been challenged by the Defense Contract Audit Agency in recent years. In July 1984, the agency supplied the list, which covers expenditures in fiscal 1981 in some cases and 1982 in others, to the House Government Operations subcommittee on legislation and national security. The agency did not identify the contractors by name, but the subcommittee staff did.
The Defense Department allows contractors to include certain kinds of public relations expenses in the payments they receive for overhead costs associated with defense contracts. The challenged expenses include. among other things, the sponsorship of a theater at Marriott's Great America theme park, a relocation bonus for an employe, press club dinners, gifts and advertising. In the case of Martin Marietta's Denver Aerospace Division, the DCAA subsequently authorized the payment of $90,985. Contractor..Amount Challenged by DCAA . . . Rockwell International, Space Transportation & System Group . . . $3,035,782 Rockwell International, North American Aircraft Operations . . . 849,567 Rockwell International, Corporate Office . . . 643,209 General Dynamics, Fort Worth Division . . . 2,153,143 General Dynamics, Corporate Office . . . 1,575,590 General Dynamics, Convair Division . . . 577,531 General Dynamics, Pomona Division . . . 206,032 General Dynamics, Electric Boat . . . 45,000 United Technologies Corp., Corporate Office . . . 1,519,185 Hughes Aircraft Co., Corporate Office . . . 1,272,100 McDonnell Douglas, Corporate Office . . . 1,191,708 McDonnell Aircraft Co . . . .33,668 Tenneco, Newport News Shipbuilding and Dry Dock Co . . . .830,862 Lockheed, Corporate Office . . . 806,050 Lockheed Missiles & Space Co. Inc . . . .40,486 Martin Marietta, Denver Aerospace . . . 259,961 Martin Marietta, Corporate Office . . . 91,829 Boeing Aerospace Co . . . .186,363 Boeing, Corporate Office . . . 164,366 Litton, Ingalls Shipbuilding Division . . . 184,583 Westinghouse Electric, Corporate Office . . . 57,000