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Northrop faces fine for Virginia computer outage

Penalty likely will top $100,000

  • By Washington Technology staff
  • May 10, 2011
Northrop Grumman Corp. and the commonwealth of Virginia are close to settling on the fine the company will pay for a computer outage that crippled the state’s Division of Motor Vehicles for several days last year, the Washington Post’s Virginia Politics blog is reporting.

Northrop holds a $2.4 billion outsourcing contract with the state that has been plagued with problems. Virginia and Northrop agreed to an extension of the contract to work out problems.

The extension included a provision that Northrop would be held accountable for problems in the future. The Post’s Rosalind Helderman is reporting that the fine for the DMV problem could be more than $100,000.

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