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:
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.
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
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...
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
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
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
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)
Deloitte Consulting agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration contract. In 2000, GSA awarded Deloitte a contract for the provision of information technology services. According to the government, Deloitte failed to comply with price reduction clauses in the contract which required Deloitte to reduce the prices it charged the government if it offered lower prices to specific commercial customers and which resulted in the government paying more for Deloitte’s services than comparable commercial customers. DOJ
Computer Supply company PC Specialists Inc. (d/b/a Technology Integration Group) agreed to pay $5.9 million to settle charges it inflated the price of computers sold through another company to the National Nuclear Security Administration for use at Sandia National Laboratories in Albuquerque, New Mexico. Specifically, TIG sold Dell computers to Sandia Corporation for resale to the United States under Sandia’s contract with the NNSA. According to the government, TIG knowingly inflated the amounts it charged Sandia by failing to give credits for rebates and discounts it received from Dell as required by its contract. The government’s allegations arose from a whistleblower lawsuit filed by Maverick Granger, a former TIG executive in Albuquerque, under the qui tam provisions of the False Claims Act. He will receive a yet-to-be determined whistleblower award. Whistleblower Insider