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Monday, September 16, 2019

IT firm to pay $45 million in False Claims Act violations

By Mark Iandolo | Apr 10, 2017

WASHINGTON (Legal Newsline) — A New York information technology firm will pay $45 million over allegations of violating the False Claims Act by making false statements and claims while negotiating and administering a General Services Administration (GSA) contract, the U.S. Department of Justice said.


“This case illustrates that we will vigorously pursue federal contractors who fail to negotiate and perform their obligations with transparency and fairness,” said U.S. attorney Channing Phillips for the District of Columbia. “Together with our federal partners, we will zealously press such claims in court to recover what is owed to the American taxpayer.”


GSA pre-negotiates prices and contract terms for companies doing business with federal agencies. When entering into GSA contracts, companies must fully and accurately disclose to the GSA how they conduct business in the commercial marketplace. This lets the GSA negotiate a fair price for government agencies.

According to a March 14 Justice Department news release, CA Inc. failed to disclose its discounting practices to GSA contracting officers when negotiating a government contract in 2002 and renewing it in 2007 and 2009.


“GSA contractors must be honest and forthcoming when doing business with the federal government,” said GSA Inspector General Carol Fortine Ochoa. “American taxpayers deserve a fair deal.”

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U.S. General Services Administration