Dennis Frederick and son Brian Frederick are now expected to plead guilty to lying to the government.
The Fredericks had a contract to weld seams on the outer wall assembly of missile engines. However, their business, Precision Metal Spinning, was unable to meet specifications so they hired another company to do the job.
Williams International, the company supplying the engines, discovered cracks in the work in 2011.
Both Fredericks have signed a plea deals, acknowledging that they lied to the government about their company's work on the missile.
An 18-month prison sentence is being recommended by the government.
A court hearing is planned later this afternoon.