ABSTRACT
Northrop emerged in the 1970s as a major Pentagon contractor for several systems: fighter aircraft, navigation and guidance, electronic countermeasures, communications, remotely-piloted vehicles, electrooptical systems and aircraft services. Northrop effectively used its Government relations practices to further corporate goals. A special Ernst and Ernst audit, and a Senate investigation disclosed in 1975 that Northrop employed a number of retired US military officers for sensitive work such as overseas sales and intelligence community liaison. By 1980 Northrop was in the process of developing significant new military business. As sales of the current F-5 tapered off, the company received permission from the Department of Defense to design a new version of the aircraft for future overseas sales. As coproducer of the F-18, Northrop benefited from the Canadian decision in April 1980 to add that airplane to its inventory.
