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Pricing Fraud

This archive displays posts tagged as relevant to government contracting fraud involving pricing, including best price violations, Truth in Negotiations Act violations, and others. You may also be interested in the following pages:

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September 13, 2019

United Parcel Service will pay $8.4 million to resolve allegations that it overcharged federal agencies purchasing UPS ground delivery services under a General Services Administration Multiple Award Schedule contract by failing to adhere to the contract's Price Reductions Clause.  UPS was alleged to have offered lower prices to other customers without offering those same prices to the U.S., resulting in the government overpaying for package deliveries.  DOJ

August 29, 2019

International SOS Assistance, Inc. and related entities and individuals have agreed to pay $940,000 to resolve claims that they overbilled TRICARE for air medical evacuation services provided to military service members and their families.  International SOS was alleged to have negotiated discounts from third-party air ambulance services, but failed to pass those discounts on to TRICARE.  The case was brought by a whistleblower who used to be a flight desk manager for International SOS; he will receive an award of $165,000.  USAO EDPA

Whistleblowers Needed to Stop Secret Kickbacks, Bribes, Overcharging, and False Costs in E-Rate, Lifeline, Connect America, and Rural Healthcare programs

Posted  06/7/19
By Jessica T. Moore
Large broadband cable bales awaiting installation on rural road.
The FCC disburses billions of dollars every year for its massive Universal Service Fund (USF) and its laudable mission to promote telephone and internet access to all U.S. persons regardless of income and location. This massive pot of government money attracts a commensurate measure of opportunists seeking to defraud these well-meaning programs.

What is the Universal Service Fund?

The Universal Service Fund...

WATCH THIS SPACE: Proposed $700M Fix for Installed Foreign-Telecom Could Compound Fraud Related to Universal-Service-Fund Projects

Posted  05/31/19
Hand touching lock icon on modern digital screen interface stating “hacking detected” and “security breach”
Congress, the President, and the FCC are moving to restrict and phase out foreign-made telecommunications components seen as national security risks. While the president’s executive order of May 15, 2019 prohibits U.S. companies from buying foreign telecom, we have a huge problem: our systems already have large quantities of this equipment installed – antennas, radios, electronics, routers, services, etc. The...

May 13, 2019

Silicon Valley-based software company Informatica LLC will pay $21.57 million to resolve allegations that it provided false information about its commercial pricing and discounting practices that was then used in negotiations for Multiple Award Schedule contracts with the General Services Administration.  In addition, Informatica was alleged to have caused sales to the U.S. in violation of the Trade Agreements Act. The whistleblower, a former employee of Informatica, will receive $4.3 million from the settlement.  DOJ

Fraud in GSA Contracts: How to Report it Under the False Claims Act for a Whistleblower Reward

Posted  05/13/19
Entrance to General Services Administration building, with carved eagle over door
Federal government offices purchase all the products and services any office does: office supplies, telecommunications equipment and services, computer hardware and software, consulting services, vehicles, travel services, and so on. The General Services Administration is the centralized procurement arm for the federal government, overseeing tens of billions of dollars in procurement annually, as well as handling...

February 8, 2019

In connection with alleged fraud on a multi-billion dollar Department of Energy contract, the United States has filed a False Claims Act complaint against Mission Support Alliance LLC (MSA), Lockheed Martin Services Inc. (LMSI), Lockheed Martin Corporation (LMC) and Jorge Francisco Armijo, currently VP of LMC but formerly president of MSA. The complaint alleges that defendant LMSI violated the FCA by submitting false statements about its profits to order to inflate its billing rate. The complaint also alleged that, in violation of the Anti-Kickback Act, defendant LMC paid Armijo and other MSA executives more than $1 million in order to win a $232 million subcontract to clean up the Hanford nuclear waste site in Washington State. DOJ; USAO EDWA

November 5, 2018

The owner of WOW Imaging Products LLC and Time Enterprises LLC pled guilty to defrauding government agencies of approximately $3.5 million over the course of six years. Beginning in 2011, Jim A. Meron allegedly profited substantially from office products his companies sold to federal agencies through sales portals run by the General Services Administration (GSA) and Department of Defense (DoD). Although Meron’s government clients placed orders for premium products, he often sent products that cost a fraction of what they paid, pocketing the difference in price. In addition to forfeiting $1.7 million in assets, Meron now faces a maximum of 20 years and hundreds of thousands of dollars in fines; his sentencing is scheduled for February 2019. USAO EDCA

October 15, 2018

Alpha Research & Technology, Inc. (ART) has agreed to pay $1 million to settle False Claims Act-based allegations of defense contract fraud. From 2006 to 2011, the command and control systems provider allegedly submitted inflated subcontractor pricing proposals to contractors who then unknowingly included the false claims in proposals submitted to the Department of Defense. Among the expenses claimed by ART were the personal expenses of co-owners Donne and DeAnne Smith for designing and constructing a luxury home, luxury cars, and luxury getaways. USAO EDCA

February 15, 2017

Nevada-based Sierra Nevada Corporation agreed to pay $14.9 million to resolve allegations it violated the False Claims Act by misclassifying certain costs, resulting in inflated overhead rates paid to the company under various government contracts.  DOJ (EDCA)
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