SAN DIEGO -- Pentagon officials have canceled a $250 million, five-year contract with defense contractor MZM Inc., which has ties to U.S. Rep. Randy "Duke" Cunningham, R-San Diego, it was reported Wednesday.

Pentagon officials told the North County Times they had canceled the contract earlier this month and that the decision is not related to an investigation of Cunningham.

The relationship between Cunningham and MZM founder Mitchell Wade has come under scrutiny and has raised questions about whether the congressman used his position to steer contracts to the company.

An investigation by the U.S. Attorney's office is under way. Cunningham's attorney, K. Lee Blalack, said Cunningham received a subpoena for documents from a federal grand jury.

In September 2002, MZM signed a broad deal with the Pentagon, called a "blanket purchase agreement," the Times reported. The agreement allowed the company to negotiate defense contracts with branches of the armed forces totaling up to $250 million over a five-year period.

Since then, the company has used the agreement, which it received without competitive bidding, to secure contracts with different branches of the armed forces for $163 million, Pentagon sources told the Times.

An official with Washington budget watchdog Taxpayers for Common Sense told the Times that of 90 contracts MZM received through the agreement, 85 involved no competitive bidding.

Cunningham sold his Del Mar home in November 2003 for $1.675 million to Wade, then used the proceeds to buy a home in Rancho Santa Fe for about $2.5 million. Nearly nine months later, Wade sold the home for $975,000 -- a $700,000 loss.

Additionally, Cunningham has been living aboard Wade's yacht for more than a year. MZM has been a major contributor to Cunningham's campaigns.

MZM is reportedly up for sale and has seen a wave of resignations, including high-level executives, reported 10News.