WASHINGTON (AP) - The State Department has dismissed an analyst who may have helped award millions in contracts to a company run by her husband and daughter.

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A State Department spokeswoman, Heide Bronke Fulton, said Wednesday the department has launched an investigation over allegations against Kathleen McGrade.

The story was first reported by The Daily Caller. It said McGrade, working for the company ATSG of Arlington, Va., participated in awarding more than $52 million in contracts to the Washington-based company Sterling Royale Group.

The Daily Caller said Sterling Royale is run by McGrade's husband, Brian Collinsworth, and daughter, J.L. Henning.

Bronke Fulton said McGrade was a management analyst, not a contracting officer, and only supported the contracting process.

An ATSG employee declined to comment. A message left with Sterling Royale wasn't answered.