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Capital Business
Posted at 02:55 PM ET, 07/03/2013

SAIC pays $5.75 million to settle allegations of providing false information

McLean-based Science Applications International Corp. has agreed to pay $5.75 million to settle False Claims Act allegations related to a General Services Administration contract, the Justice Department said today.

According to the Justice Department, SAIC was alleged to have provided false information to GSA contracting officials to encourage them to award a 2006 contract for work related to studying and evaluating new products and emerging technologies, the department said.

The lawsuit against SAIC was originally filed under whistleblower provisions by Timothy Ferner, a retired Air Force lieutenant colonel who is to receive $977,500 of the settlement.

The Justice Department said there has been no determination of liability in the case.

In a statement, SAIC said it “disputes the allegations brought in a complaint by [the Justice Department] but agreed to settle to avoid cost of protracted litigation.”

The settlement follows another announced last month. In that case, the company paid $11.75 million to settle allegations it charged inflated prices for a contract in New Mexico, according to the Justice Department.

Under the deal with the New Mexico Institute of Mining and Technology, SAIC providing training for first responders on preventing and responding to terrorism attacks, the Justice Department said. The U.S. government alleged that SAIC’s proposal said the company would employ more expensive personnel than it ended up using.

In that case as well, the Justice Department noted there was no determination of liability.

Note: An earlier version of this post incorrectly identified Timothy Ferner.

By  |  02:55 PM ET, 07/03/2013

 
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