Lockheed Martin Corp. [LMT], the largest defense contractor receiving $34.2 billion in contracts in fiscal 2007, also led the pack in instances of misconduct, according to the Project on Government Oversight (POGO), a nonprofit non-government organization.

According to the private watchdog agency, since 1995, Lockheed was cited for 50 instances of civil, criminal, or administrative misconduct, the most of any contractor.

The company was assessed penalties totaling $577 million during that time, according to POGO.

Other companies in the POGO list included The Boeing Co. [BA], $24.3 billion in contracts in the fiscal year ending Sept. 30, 2007, 31 citations in the past dozen years, and $1.565 billion in penalties; Northrop Grumman Corp. [NOC], $18.5 billion in contracts, 27 improprieties, $790.4 million penalties; General Dynamics Corp. [GD], $14.7 billion contracts, nine citations, $63.2 million penalties; Raytheon Co. [RTN], $12.2 billion contracts; 17 citations, $475.8 million penalties; BAE Systems, $10.1 billion contracts, 17 misconduct citations, $475.8 million penalties; L-3 Communications (LLL), $6.8 billion contracts, four citations, $4 million penalties; United Technologies Corp. [UTX], $5.9 billion contracts, 13 improprieties, $383 million penalties; SAIC, $5.2 billion contracts; 10 citations, $14.5 million, and KBR (formerly Kellogg Brown Root, a Halliburton unit), $4.9 billion contracts, 18 instances of misconduct, $102.8 million penalties.

The full report titled the “Federal Contractor Misconduct Database” may be read at http://www.pogo.org on the Web.