Federal Drive

Northrop agrees to computer crash settlement

Northrop Grumman has agreed to spend $4.7 million as a result of a massive computer failure that cut off some Virginia state services for days last year.

Federal News Network Staff

May 20, 2011 10:30 am

< a min read

Northrop Grumman is going to pay the state of Virginia $5 million to cover the cost of last summer’s massive computer outages. The Washington Business Journal reports the money will also help ensure that the problems never happen again. The problem started last August when a piece of computer hardware failed, causing outages at 26 state agencies. An audit finds that Northrop wasn’t using industry best practices for monitoring, testing, and managing its system. Northrop, which is moving its headquarters to Virginia, has a $2 billion, multiyear deal to manage the state’s computer networks.

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