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Chantilly contractor agrees to pay $6.5 million to settle allegations of inflated billing

Chantilly-based contractor Vector Planning and Services has agreed to pay the government $6.5 million to settle allegations that the company inflated claims for payment on several Navy contracts, the Justice Department said Tuesday.

The government had alleged that from 2005 to 2009, VPSI improperly included direct costs — for which it had already been paid — in indirect cost billings submitted under IT, systems engineering and management consulting contracts with the Navy and its contractors.

The company also submitted claims for costs that were never incurred, the government alleged, according to the Justice Department’s announcement.

The allegations arose through a whistleblower, who in this case will receive $1.28 million.

The Justice Department noted that the claims settled by this agreement are only allegations, and there has been no determination of liability.

VPSI did not immediately return requests for comment.

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