(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.”
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.”