Manufacturer Fined $2 Million then Awarded New Military Contract

February 6, 2008
Manufacturer Fined $2 Million then Awarded New Military Contract

A North Dakota manufacturer has agreed to pay $2 million to settle a suit saying it had repeatedly shortchanged the armor in up to 2.2 million helmets for the military, including those for the first troops sent to Iraq and Afghanistan.

Twelve days before the settlement with the Justice Department was announced, the company, Sioux Manufacturing of Fort Totten, was given a new contract of up to $74 million to make more armor for helmets to replace the old ones, which were made from the late 1980s to last year.