Defense contractor settles for $1.15M in bid allegation

Defense contractor Paragon Dynamics will pay $1.15 million to settle allegations that it improperly obtained information about a competitor's bid for two contracts with the National Reconnaissance Office , the Associated Press reports.

Prosecutors claimed an employee of Aurora, Colo.-based Paragon with access to a Raytheon facility in the area stole drafts of Raytheon proposals and faxed them to Paragon’s president. The information was sent to a company that was teaming with Paragon in a contract bid, according to the allegations.

Paragon Dynamics settled the affair without admitting wrongdoing. It was not clear how much the contracts, alluded to in the settlement as "Antietam" and "Savannah," were worth. The National Reconnaissance Office, an intelligence agency, operates spy satellites.