VMware will this week open a public sector office on Sunset Hills Road in Reston that will give the company room for more employees, as well as a briefing center for potential customers and partners.

The public sector unit had 135 employees at a roughly 6,000-square-foot office in Reston, but outgrew the space, said Aileen Black, vice president for public sector at VMware, which specializes in cloud computing and virtualization.

“We have a lot of hoteling,” or sharing desks, Black said. “We were exploding out of our office space.”

She said the public sector unit’s revenue has gone from $8 million in 2004 to more than $500 million today.

The new 51,000-square-foot office will have room for 210 employees and will also serve as the company’s East Coast briefing center. As government travel budgets have declined, Black said the ability to host agency officials locally has become all the more important.

Engility starts new ad campaign

Chantilly-based Engility last week rolled out a television advertising campaign, premiering on the Mid-Atlantic Sports Network, or MASN, during the Washington Nationals’ first night game on Wednesday.

The ad spot, which puts the company’s logo in front of an odometer against the sound of a car engine revving, touts the efficiency of Engility, which was spun off from L-3 Communications last year.

The ad is an early step in a larger rebranding effort that includes a new Web site, company spokesman Eric Ruff said.

But why advertise at all when your target purchaser is a government procurement official? “You need to tell the marketplace who you are,” Ruff said.

GAO denies Qwest protest

The Government Accountability Office rejected a protest filed by Arlington-based Qwest Government Services against the terms of a solicitation issued by the Interior Department for cloud hosting services.

Qwest raised many objections, including that the solicitation did not sufficiently set out the department’s requirements, according to the GAO report. The company also argued that the evaluation criteria were ambiguous, the report added.

The GAO disagreed with the claims and denied the protest.

CDW-G settles allegations over false claims

The Justice Department said last month that CDW-Government, a subsidiary of Illinois-based CDW Corp., has agreed to pay $5.66 million to settle allegations that it submitted false claims in connection with a General Services Administration contract.

The settlement resolves allegations that the company for more than a decade improperly charged government buyers for shipping, sold products manufactured in China and other companies prohibited by trade agreements and underreported sales, the Justice Department said in a statement. The department noted “there has been no determination of liability.”

The allegations came out of a lawsuit filed under whistleblower provisions, the department added. As a result, Joe Liotine, a former CDW-G sales representative, is set to receive $1.59 million of the money recovered.

CDW said in a statement that it agreed to settle “to avoid the additional time, inconvenience and expense that would come with protracted litigation.

“It’s important to note that no fault was found in this case and CDW-G admits no wrongdoing and denies the basis for the claim,” the statement added.

Many employees on CDW-G’s federal sales team work out of the company’s Herndon office.