The Navy eased contract sanctions against Litton.

The Navy lifted its suspension on all but one division of the Beverly Hills-based aerospace firm. Litton’s Clifton Precision Division, which pleaded guilty to a federal indictment alleging that it bilked the government of $6.3 million over a nine-year period, remains under a suspension that prevents it from bidding on or receiving new government contracts. The Navy had already lifted the suspension against Litton’s defense electronics divisions and against its Ingalls shipyard, the firm’s principal contracting units. Assistant Navy Secretary Everett Pyatt said that Litton had agreed to a series of reforms but that talks were continuing regarding the Clifton unit.