FROM: U.S. JUSTICE DEPARTMENT
Tuesday, June 30, 2015
VMWare and Carahsoft Agree to Pay $75.5 Million to Settle Claims that they Concealed Commercial Pricing and Overcharged the Government
VMware Inc. and Carahsoft Technology Corporation have agreed to pay $75.5 million to resolve allegations that they violated the False Claims Act by misrepresenting their commercial pricing practices and overcharging the government on VMware software products and related services, the Department of Justice announced today. VMware is a Delaware corporation that specializes in computer virtualization software and has its principal place of business in Palo Alto, California. Carahsoft is a privately held Maryland corporation that distributes information technology products to federal, state and local governments and has its principal place of business in Reston, Virginia.
“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government give the taxpayers a fair deal,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “Government contractors who seek to profit improperly at the expense of taxpayers face serious consequences.”
“Transparency by contractors in the disclosure of their discounts and prices offered to commercial customers is critical in the award of GSA Multiple Award Schedule contracts and the prices charged to government agency purchasers,” said U.S. Attorney Dana J. Boente of the Eastern District of Virginia.
“We will continue to look into all allegations of false claims in GSA contracts,” said Acting Inspector General Robert C. Erickson of the U.S. General Services Administration (GSA). “I appreciate the hard work of our auditors, our agents and the attorneys on this complex case that has resulted in a large amount of money being returned to the United States.” Under the Multiple Award Schedule (MAS) Program, prospective vendors agree to disclose commercial pricing policies and practices to the GSA in exchange for the opportunity to gain access to the broad federal marketplace and the ease of administration that comes from selling to any government purchaser under one central contract. GSA regulations require that, during contract negotiations with GSA, prospective vendors seeking an MAS contract make “current, accurate and complete” disclosures of the standard and non-standard discounts they offer to commercial customers. The GSA relies on the accuracy of these disclosures in order to negotiate fair pricing for government purchasers. Additionally, after the MAS contract is awarded, regulations require that MAS Program vendors disclose to the GSA changes in their commercial pricing practices, including improved discounts that are offered to commercial customers, after the MAS contract is in place.
The settlement resolves allegations that VMware and Carahsoft made false statements to the government in connection with the sale of VMware products and services under Carahsoft’s MAS contract. These false statements allegedly concealed the companies’ commercial pricing practices and enabled the companies to overcharge the government for VMware’s products and services from 2007 through 2013.
The civil settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the government’s recovery. The civil lawsuit was filed in the Eastern District of Virginia by Dane Smith, who is a former vice president of the Americas at VMware Inc. Mr. Smith’s share of the recovery has not been determined.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the Eastern District of Virginia and the GSA’s Office of Inspector General, with assistance from the Defense Criminal Investigative Service Mid-Atlantic Field Office. The case is captioned United States ex rel. Smith v. VMware, Inc., et al., Case No. 10-CV-769 (E.D. Va.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Showing posts with label GOVERNMENT CONTRACTORS. Show all posts
Showing posts with label GOVERNMENT CONTRACTORS. Show all posts
Friday, July 3, 2015
Friday, February 13, 2015
POSTAL SERVICE CONTRACTING OFFICER INDICTED FOR ALLEGED ROLL IN BRIBERY AND KICKBACK SCHEME
FROM: U.S. JUSTICE DEPARTMENT
Wednesday, February 11, 2015
Former Contracting Officer and Contractor Charged with Bribery Scheme in Connection with Awarding of U.S. Postal Service Contracts
A former U.S. Postal Service contracting officer, along with a mail delivery contractor, were indicted today for engaging in a scheme to defraud the Postal Service through bribery and kickbacks in connection with the awarding of contracts to deliver the mail.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Inspector General David C. Williams of the U.S. Postal Service made the announcement.
Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service Contracting Officer Representative and Purchasing and Supply Management Specialist, and Barbara Murphy, 51, of Rocky Mount, North Carolina, the owner and operator of MC&G Trucking LLC and ER&R Transportation, were charged today in a ten-count indictment unsealed in the District of Maryland. Both Cooper and Murphy are charged with one count of conspiracy and five counts of honest services wire fraud, and each is separately charged in a single count of bribery. Cooper is also charged with one count of executing a false document and one count of making false statements.
According to the indictment, from January 2011 through July 2012, Cooper allegedly solicited and accepted bribes and kickbacks from Murphy in exchange for helping her win contracts for delivery of the mail. Specifically, the indictment alleges that Cooper accepted, among other things, cash deposits into his checking account, payments against his car loan and cell phone bills and a college tuition payment on behalf of his daughter. In exchange, Cooper allegedly assumed the responsibility for reviewing the contracts on which Murphy bid from his subordinates, recommended that Murphy be awarded nine Postal Service contracts worth $1.5 million, provided Murphy with confidential bid information and assumed direct oversight over Murphy’s contracts from his subordinates. The indictment further alleges that Cooper made false statements to investigators regarding his allegedly corrupt relationship with Murphy and executed a false financial disclosure document failing to disclose the bribes he had accepted from Murphy.
The charges and allegations contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Postal Service Office of the Inspector General. The case is being prosecuted by Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Arun Rao of the District of Maryland.
Wednesday, February 11, 2015
Former Contracting Officer and Contractor Charged with Bribery Scheme in Connection with Awarding of U.S. Postal Service Contracts
A former U.S. Postal Service contracting officer, along with a mail delivery contractor, were indicted today for engaging in a scheme to defraud the Postal Service through bribery and kickbacks in connection with the awarding of contracts to deliver the mail.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Inspector General David C. Williams of the U.S. Postal Service made the announcement.
Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service Contracting Officer Representative and Purchasing and Supply Management Specialist, and Barbara Murphy, 51, of Rocky Mount, North Carolina, the owner and operator of MC&G Trucking LLC and ER&R Transportation, were charged today in a ten-count indictment unsealed in the District of Maryland. Both Cooper and Murphy are charged with one count of conspiracy and five counts of honest services wire fraud, and each is separately charged in a single count of bribery. Cooper is also charged with one count of executing a false document and one count of making false statements.
According to the indictment, from January 2011 through July 2012, Cooper allegedly solicited and accepted bribes and kickbacks from Murphy in exchange for helping her win contracts for delivery of the mail. Specifically, the indictment alleges that Cooper accepted, among other things, cash deposits into his checking account, payments against his car loan and cell phone bills and a college tuition payment on behalf of his daughter. In exchange, Cooper allegedly assumed the responsibility for reviewing the contracts on which Murphy bid from his subordinates, recommended that Murphy be awarded nine Postal Service contracts worth $1.5 million, provided Murphy with confidential bid information and assumed direct oversight over Murphy’s contracts from his subordinates. The indictment further alleges that Cooper made false statements to investigators regarding his allegedly corrupt relationship with Murphy and executed a false financial disclosure document failing to disclose the bribes he had accepted from Murphy.
The charges and allegations contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the U.S. Postal Service Office of the Inspector General. The case is being prosecuted by Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Arun Rao of the District of Maryland.
Tuesday, December 9, 2014
SECRETARY KERRY'S REACTION TO SENATE REPORT ON TORTURE
FROM: U.S. STATE DEPARTMENT
Release of Senate Select Committee on Intelligence Report
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
Release of this report affirms again that one of America's strengths is our democratic system’s ability to recognize and wrestle with our own history, acknowledge mistakes, and correct course. This marks a coda to a chapter in our history. President Obama turned the page on these policies when he took office and during week one banned the use of torture and closed the detention and interrogation program. It was right to end these practices for a simple but powerful reason: they were at odds with our values. They are not who we are, and they're not who or what we had to become, because the most powerful country on earth doesn't have to choose between protecting our security and promoting our values.
Now this report sheds light on this period that's more than five years behind us, so we can discuss and debate our history – and then look again to the future.
As that debate is joined, I want to underscore that while it's uncomfortable and unpleasant to reexamine this period, it's important that this period not define the intelligence community in anyone's minds. Every single day, the State Department and our diplomats and their families are safer because of the men and women of the CIA and the Intelligence Community. They sign up to serve their country the same way our diplomats and our military do. They risk their lives to keep us safe and strengthen America's foreign policy and national security. The awful facts of this report do not represent who they are, period. That context is also important to how we understand history.
Release of Senate Select Committee on Intelligence Report
Press Statement
John Kerry
Secretary of State
Washington, DC
December 9, 2014
Release of this report affirms again that one of America's strengths is our democratic system’s ability to recognize and wrestle with our own history, acknowledge mistakes, and correct course. This marks a coda to a chapter in our history. President Obama turned the page on these policies when he took office and during week one banned the use of torture and closed the detention and interrogation program. It was right to end these practices for a simple but powerful reason: they were at odds with our values. They are not who we are, and they're not who or what we had to become, because the most powerful country on earth doesn't have to choose between protecting our security and promoting our values.
Now this report sheds light on this period that's more than five years behind us, so we can discuss and debate our history – and then look again to the future.
As that debate is joined, I want to underscore that while it's uncomfortable and unpleasant to reexamine this period, it's important that this period not define the intelligence community in anyone's minds. Every single day, the State Department and our diplomats and their families are safer because of the men and women of the CIA and the Intelligence Community. They sign up to serve their country the same way our diplomats and our military do. They risk their lives to keep us safe and strengthen America's foreign policy and national security. The awful facts of this report do not represent who they are, period. That context is also important to how we understand history.
Monday, November 24, 2014
ENERGY COMPANY TO PAY $2.5 MILLION FOR ALLEGED INVOLVEMENT IN FRAUD CONSPIRACY AGAINST UNITED STATES
WEDNESDAY, NOVEMBER 19, 2014
WASHINGTON GAS ENERGY SYSTEMS AGREES TO PAY $2.5 MILLION IN FINES AND PENALTIES FOR CONSPIRING TO OBTAIN FEDERAL CONTRACTS
Scheme Involved Energy-Related Services at Government Buildings
WASHINGTON — Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.
The court agreement was announced today by William J. Baer, Assistant Attorney General of the Antitrust Division; Principal Assistant U.S. Attorney Vincent H. Cohen Jr. of the U.S. Attorney’s Office for the District of Columbia; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA), and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings Inc. (WGL). WGL is the parent company for all of the corporations within the Washington Gas family. WGESystems plays no direct role in the delivery of natural gas, and it is not a utility. It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.
A criminal information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States. WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees.
In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the court.
According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.
Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.
“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General Bill Baer for the Antitrust Division. “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”
“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen. “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company. Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement. This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”
“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson. “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”
“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson. “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”
“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe. “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”
According to the court documents, until 2010, GSA had an area-wide contract with WGESystems. This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.
However, starting in 2010, the federal government changed its practices. The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient. These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.
To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts. The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”
As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.
WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts. Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings. When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.
WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees. For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.
Under the agreement with WGESystems, the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261. To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects. WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.
Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies and procedures.
In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division’s Washington Criminal I Section.
WASHINGTON GAS ENERGY SYSTEMS AGREES TO PAY $2.5 MILLION IN FINES AND PENALTIES FOR CONSPIRING TO OBTAIN FEDERAL CONTRACTS
Scheme Involved Energy-Related Services at Government Buildings
WASHINGTON — Washington Gas Energy Systems (WGESystems) has agreed to pay more than $2.5 million in fines and monetary penalties for conspiring to commit fraud on the United States by illegally obtaining contracts that were meant for small, disadvantaged businesses.
The court agreement was announced today by William J. Baer, Assistant Attorney General of the Antitrust Division; Principal Assistant U.S. Attorney Vincent H. Cohen Jr. of the U.S. Attorney’s Office for the District of Columbia; Robert C. Erickson, Acting Inspector General of the U.S. General Services Administration (GSA); Peggy E. Gustafson, Inspector General for the Small Business Administration (SBA), and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office.
WGESystems, based in Virginia, is a wholly owned subsidiary of WGL Holdings Inc. (WGL). WGL is the parent company for all of the corporations within the Washington Gas family. WGESystems plays no direct role in the delivery of natural gas, and it is not a utility. It is a design-build firm that specializes in providing energy efficiency and sustainability solutions to clients.
A criminal information was filed today in the U.S. District Court for the District of Columbia charging WGESystems with one count of knowingly and willfully conspiring to commit major fraud on the United States. WGESystems waived the requirement of being charged by way of federal indictment, agreed to the filing of the information, and has accepted responsibility for its criminal conduct and that of its employees.
In addition, as part of a deferred prosecution agreement reached with the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division, WGESystems agreed to pay a fine of $1,560,000 and a monetary penalty of $1,027,261 within five days of the approval of the agreement by the court.
According to court documents filed today, WGESystems conspired with a company that was eligible to receive federal government contracts set aside for small, disadvantaged businesses with the understanding that the business would illegally subcontract all of the work on the projects to WGESystems. In this way, WGESystems was able to capture a total of eight contracts worth $17,711,405 that should have gone to an eligible company. These contracts, awarded in 2010, were focused on making federal buildings in the Washington, D.C., area more energy efficient.
Under the illegal agreement, the company that was awarded these government contracts was allowed to keep 5.8 percent of the value of the contracts for allowing WGESystems to use the company’s small business status to win these contracts.
“Conspiracies to violate federal procurement laws will not be tolerated,” said Assistant Attorney General Bill Baer for the Antitrust Division. “Taxpayers deserve to have contracting processes that are fair and competitive, and fully comply with applicable laws and regulations.”
“Time and time again, we have seen government contractors abuse and exploit programs designed to help minority and socially disadvantaged small businesses,” said Principal Assistant U.S. Attorney Cohen. “This Washington Gas subsidiary obtained millions of dollars in federal contracts by using a small business that had no ability to actually complete the contract as a front company. Even though the subsidiary lost money on these contracts, it is required to pay $2.5 million in fines and penalties under this agreement. This resolution should cause other contractors to think twice about playing fast and loose with federal contracting rules.”
“Cases like this are important for us to maintain the integrity of the federal contracting process,” said GSA Acting Inspector General Erickson. “Companies cannot cheat to win federal contracts and expect to get away with their ill-gotten gains.”
“SBA’s 8(a) Business Development Program assists eligible socially and economically disadvantaged individuals in developing and growing their businesses,” said SBA Inspector General Gustafson. “Large businesses that fraudulently seek to gain access to contracts set aside for small businesses erode the public’s trust in this important program. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their professionalism and commitment to justice in this investigation.”
“Federal government contracting laws are in place to create a level playing field for small disadvantaged businesses whose work supports our country's diverse financial infrastructure,” said Assistant Director in Charge McCabe. “The FBI with our law enforcement partners will investigate those companies who fraudulently abuse federal contracting laws with the purpose of increasing their company's bottom line.”
According to the court documents, until 2010, GSA had an area-wide contract with WGESystems. This contract enabled GSA, without competition, to enter into contracts with WGESystems so that WGESystems could provide energy management services for federal buildings.
However, starting in 2010, the federal government changed its practices. The American Reinvestment and Recovery Act appropriated funds to make buildings in the District of Columbia and the surrounding area more energy efficient. These funds were to be awarded through the 8(a) program, which is administered by the SBA and which was created to help small, disadvantaged businesses access the federal procurement market.
To qualify for the 8(a) program, a business must be at least 51 percent-owned and controlled by a U.S. citizen (or citizens) of good character who meet the SBA’s definition of socially and economically disadvantaged. The firm also must be a small business (as defined by the SBA) and show a reasonable potential for success. Participants in the 8(a) program are subject to regulatory and contractual limits on subcontracting work from 8(a) set-aside contracts. The SBA regulations require, among other things, the 8(a) concern to agree that on construction contracts it “will perform at least 15 percent of the cost of the contract with its own employees (not including the costs of materials).”
As a result of this change, WGESystems – which was not certified to participate in the 8(a) program – faced the prospect of losing millions of dollars in revenue.
WGESystems, along with an 8(a) company it used to obtain these contracts, and others, engaged in and executed a scheme to defraud the SBA and GSA by, among other things: concealing that WGESystems, which was not eligible for the aforementioned SBA contracting preferences, exercised impermissible control over the 8(a) company’s bidding for and performance on GSA contracts; and misrepresenting that the 8(a) company was in compliance with SBA regulations pertaining to work on these contracts, including that the company’s employees had performed the required percentage of work on these contracts. Through these unlawful efforts, WGESystems and the 8(a) company with which it conspired obtained, at least, approximately $17,711,405 in U.S. government contracts related to work at eight different federal buildings. When these contracts were awarded, the 8(a) company’s registered place of business was the president of the company’s home, and the company had no employees who could provide design-build or contracting services.
WGESystems assisted the 8(a) company with identifying a project manager for the work at the eight buildings who was nominally an employee of the 8(a) company, but who, in actuality, took direction from WGESystems employees. For much of the relevant period, this project manager was the only employee of the 8(a) company performing work for any of the eight projects.
Under the agreement with WGESystems, the 8(a) company was entitled to 5.8 percent of the $17,711,405 total value of the contracts, which equals $1,027,261. To date, with all but one of the eight contracts completed or suspended, WGESystems has lost approximately $1,122,581 on the projects. WGESystems initially anticipated a profit margin that would have equaled about $1,560,000.
Since being informed of this investigation by the Justice Department, WGESystems has taken steps to enhance and optimize its internal controls, policies and procedures.
In light of the company’s remedial actions to date and its willingness to acknowledge responsibility for its actions, the U.S. Attorney’s Office for the District of Columbia and the Antitrust Division will recommend the dismissal of the Information in two years, provided WGESystems fully cooperates with, and abides by, the terms of the deferred prosecution agreement.
This investigation was conducted by the Inspector General’s Offices of the U.S. General Services Administration and the Small Business Administration and the FBI’s Washington Field Office. The prosecution is being handled by Assistant U.S. Attorney Matt Graves of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia, and Assistant Chief Craig Y. Lee and Trial Attorney Diana Kane, both of the Antitrust Division’s Washington Criminal I Section.
Saturday, October 11, 2014
BOEING RESOLVES FALSE CLAIMS ALLEGATIONS BY PAYING $23 MILLION
FROM: U.S. JUSTICE DEPARTMENT
Friday, October 10, 2014
Boeing Pays $23 Million to Resolve False Claims Act Allegations
“Today’s settlement demonstrates that the Justice Department vigilantly ensures that companies meet their contractual obligations and charge the government appropriately,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Government contractors who seek illegal profit at the expense of taxpayers will face serious consequences.”
The government alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Aerospace Support Center in San Antonio, Texas. The C-17 Globemaster aircraft, which is both manufactured and maintained by Boeing, is one of the military’s major systems for transporting troops and cargo throughout the world. The government alleged that the company knowingly and improperly billed a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts.
“Defense contractors are required to obey strict accounting standards when submitting billing for work performed on government contracts,” said U.S. Attorney Robert Pitman for the Western District of Texas. “The pursuit and favorable settlement of this civil litigation was the result of effective teamwork between the Justice Department and the investigative agencies.”
The settlement resolves allegations originally brought in a lawsuit by present and former Boeing employees Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza in federal court in San Antonio under the False Claims Act. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The individuals who filed the suit will receive $3,910,000 as their share of the settlement.
The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Western District of Texas, the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Defense Contract Audit Agency and the Defense Contract Management Agency.
The case is United States ex rel. Craddock v. Boeing, Case No. SA-07-CA-0880FB (W.D. Tex.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Tuesday, November 12, 2013
U.S. DEFENSE DEPARTMENT CONTRACTS FOR NOVEMBER 12, 2013
FROM: U.S. DEFENSE DEPARTMENT
CONTRACTS
NAVY
Maersk Line Ltd., Norfolk, Va., is being awarded a $73,677,038 firm-fixed-price contract for the time charter of one U.S.-flagged, twin-shaft vessel, which shall function as a maritime support vessel. This contract includes four 12-month option periods, which, if exercised, would bring the cumulative value of this contract to $143,149,058. Work will be performed at sea worldwide, and is expected to be completed November 2014. If all options are exercised, work will continue through October 2018. Working capital contract funds in the amount of $73,677,038 are obligated for fiscal 2014, and will not expire at the end of the current fiscal year. This contract was competitively procured with over 200 proposals solicited via a solicitation posted to the Military Sealift Command and Federal Business Opportunities websites, with 13 offers received. The Military Sealift Command, Washington, D.C., is the contracting activity (N00033-14-C-2015).
General Dynamics Information Technology, Falls Church, Va., is being awarded a $49,999,999 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for approximately 600,000 hours of integrated logistics services in support of technical analysis and investigation of Foreign Military Sales Programs. Work will be performed in Patuxent River, Md. (59 percent); Annandale, Va. (9 percent); Philadelphia, Pa. (7 percent); Jacksonville, Fla. (6 percent); Kuwait (6 percent); Australia (5 percent); Arlington, Va. (4 percent); Egypt (1 percent); Japan (1 percent); Malaysia (1 percent); and Taiwan (1 percent), and is expected to be completed in November 2014. Funds are not being obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-D-0002).
TRANSPORTATION COMMAND
Federal Express Charter Programs Team Arrangement, Memphis, Tenn., is being awarded an estimated $145,223,956 modification to previously awarded contract HTC711-13-D-CC02 for international airlift services. Team members include: Air Transport International LLC, Little Rock, Ark.; Atlas Air, Inc., Purchase, N.Y.; Delta Air Lines, Inc., Atlanta, Ga.; Federal Express Corp.; Polar Air Cargo Worldwide, Inc., Purchase, N.Y.; and MN Airlines, LLC, doing business as Sun Country Airlines, Mendota Heights, Minn. Work will be performed at worldwide locations, and is expected to be completed Sept. 30, 2014. Fiscal 2014 Transportation Working Capital Funds are being obligated on individual task orders. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity.
National Air Cargo Group, Inc., doing business as National Airlines of Orlando, Fla., is being awarded an estimated $12,267,057 firm-fixed-price contract modification to increase the estimated contract value under previously awarded contract HTC711-13-D-CC08 for international airlift services. Work will be performed at worldwide locations and is expected to be completed Sept. 30, 2014. Fiscal 2014 Transportation Working Capital Funds are being obligated on individual task orders. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Northrop Grumman Systems Corp., Bethpage, N.Y., has been awarded a maximum $37,484,783 firm-fixed-price contract for procurement of weapons system outer wing panels. This contract is a sole-source acquisition. Location of performance is New York, with a Nov. 31, 2017 performance completion date. This contract is a four-year base with no option-year periods. Using military service is Navy. Type of appropriation is fiscal 2014 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPM4AX-12-D-9401-THA5).
Quality Fruit and Vegetable LLC*, El Paso, Texas, has been awarded a maximum $30,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for fresh fruit and vegetable support. This contract is a competitive acquisition, and two offers were received. Location of performance is Texas with a May 17, 2015 performance completion date. This contract is an 18-month base period with two 18-month option-year periods. Using military services are Army and Department of Agriculture school customers. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE300-14-D-P231).
ARMY
BAE Systems - Land and Armaments LP, York, Pa., was awarded a $26,484,767 modification (P00001) to an existing fixed-price-incentive, option-included contract (W56HZV-14-C-0002) to exercise the option for Paladin Integrated Management low rate initial production technical data package and electronic technical manuals. Work will be performed in York; Sterling Heights, Mich.; and Santa Clara, Calif.; with an estimated completion date of Oct. 31, 2016. Fiscal 2014 procurement funds are being obligated on this award. The Army Contracting Command, Warren, Mich., is the contracting activity.
AIR FORCE
A-YZ Corp., Winchester Mass., has been awarded a $7,166,660 cost-plus-fixed-fee contract to create the capability to perform inference on real-world problems with 100 times “bigger” models than previously known to be achievable. “Bigger” models can translate into orders of magnitude, less training data required, less computation required for inference, and more accurate results. The contractor will develop and deliver a software prototype that will offer inference performance equal to or greater than 1e6-1e9 Metropolis-Hastings Markov Chain Monte Carlo (MH MCMC) samples per second and approximately 1e2-1e5 greater inference performance than existing systems. The innovations that will enable this capability are new forms of map-reduce based parallel inference on the cloud leveraging both a diversity of existing solvers as well as exploring the assimilation of certain core solvers into a more mathematically integrated and computationally efficient form. Work will be performed at Winchester, Mass., and is expected to be complete by Aug. 30, 2017. This award is the result of a competitive acquisition via an open Broad Agency Announcement, DARPA BAA No. 13-31; offers were solicited electronically, and 78 offers were received. Fiscal 2013 research and development funds in the amount of $311,842 are being obligated at time of award. Air Force Research Laboratory/RIKF, Rome N.Y., is the contracting activity (FA8750-14-C-0001).
CONTRACTS
NAVY
Maersk Line Ltd., Norfolk, Va., is being awarded a $73,677,038 firm-fixed-price contract for the time charter of one U.S.-flagged, twin-shaft vessel, which shall function as a maritime support vessel. This contract includes four 12-month option periods, which, if exercised, would bring the cumulative value of this contract to $143,149,058. Work will be performed at sea worldwide, and is expected to be completed November 2014. If all options are exercised, work will continue through October 2018. Working capital contract funds in the amount of $73,677,038 are obligated for fiscal 2014, and will not expire at the end of the current fiscal year. This contract was competitively procured with over 200 proposals solicited via a solicitation posted to the Military Sealift Command and Federal Business Opportunities websites, with 13 offers received. The Military Sealift Command, Washington, D.C., is the contracting activity (N00033-14-C-2015).
General Dynamics Information Technology, Falls Church, Va., is being awarded a $49,999,999 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract for approximately 600,000 hours of integrated logistics services in support of technical analysis and investigation of Foreign Military Sales Programs. Work will be performed in Patuxent River, Md. (59 percent); Annandale, Va. (9 percent); Philadelphia, Pa. (7 percent); Jacksonville, Fla. (6 percent); Kuwait (6 percent); Australia (5 percent); Arlington, Va. (4 percent); Egypt (1 percent); Japan (1 percent); Malaysia (1 percent); and Taiwan (1 percent), and is expected to be completed in November 2014. Funds are not being obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. This contract was not competitively procured pursuant to FAR 6.302-1. The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity (N00421-14-D-0002).
TRANSPORTATION COMMAND
Federal Express Charter Programs Team Arrangement, Memphis, Tenn., is being awarded an estimated $145,223,956 modification to previously awarded contract HTC711-13-D-CC02 for international airlift services. Team members include: Air Transport International LLC, Little Rock, Ark.; Atlas Air, Inc., Purchase, N.Y.; Delta Air Lines, Inc., Atlanta, Ga.; Federal Express Corp.; Polar Air Cargo Worldwide, Inc., Purchase, N.Y.; and MN Airlines, LLC, doing business as Sun Country Airlines, Mendota Heights, Minn. Work will be performed at worldwide locations, and is expected to be completed Sept. 30, 2014. Fiscal 2014 Transportation Working Capital Funds are being obligated on individual task orders. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity.
National Air Cargo Group, Inc., doing business as National Airlines of Orlando, Fla., is being awarded an estimated $12,267,057 firm-fixed-price contract modification to increase the estimated contract value under previously awarded contract HTC711-13-D-CC08 for international airlift services. Work will be performed at worldwide locations and is expected to be completed Sept. 30, 2014. Fiscal 2014 Transportation Working Capital Funds are being obligated on individual task orders. The U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Ill., is the contracting activity.
DEFENSE LOGISTICS AGENCY
Northrop Grumman Systems Corp., Bethpage, N.Y., has been awarded a maximum $37,484,783 firm-fixed-price contract for procurement of weapons system outer wing panels. This contract is a sole-source acquisition. Location of performance is New York, with a Nov. 31, 2017 performance completion date. This contract is a four-year base with no option-year periods. Using military service is Navy. Type of appropriation is fiscal 2014 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPM4AX-12-D-9401-THA5).
Quality Fruit and Vegetable LLC*, El Paso, Texas, has been awarded a maximum $30,000,000 fixed-price with economic-price-adjustment, indefinite-quantity contract for fresh fruit and vegetable support. This contract is a competitive acquisition, and two offers were received. Location of performance is Texas with a May 17, 2015 performance completion date. This contract is an 18-month base period with two 18-month option-year periods. Using military services are Army and Department of Agriculture school customers. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPE300-14-D-P231).
ARMY
BAE Systems - Land and Armaments LP, York, Pa., was awarded a $26,484,767 modification (P00001) to an existing fixed-price-incentive, option-included contract (W56HZV-14-C-0002) to exercise the option for Paladin Integrated Management low rate initial production technical data package and electronic technical manuals. Work will be performed in York; Sterling Heights, Mich.; and Santa Clara, Calif.; with an estimated completion date of Oct. 31, 2016. Fiscal 2014 procurement funds are being obligated on this award. The Army Contracting Command, Warren, Mich., is the contracting activity.
AIR FORCE
A-YZ Corp., Winchester Mass., has been awarded a $7,166,660 cost-plus-fixed-fee contract to create the capability to perform inference on real-world problems with 100 times “bigger” models than previously known to be achievable. “Bigger” models can translate into orders of magnitude, less training data required, less computation required for inference, and more accurate results. The contractor will develop and deliver a software prototype that will offer inference performance equal to or greater than 1e6-1e9 Metropolis-Hastings Markov Chain Monte Carlo (MH MCMC) samples per second and approximately 1e2-1e5 greater inference performance than existing systems. The innovations that will enable this capability are new forms of map-reduce based parallel inference on the cloud leveraging both a diversity of existing solvers as well as exploring the assimilation of certain core solvers into a more mathematically integrated and computationally efficient form. Work will be performed at Winchester, Mass., and is expected to be complete by Aug. 30, 2017. This award is the result of a competitive acquisition via an open Broad Agency Announcement, DARPA BAA No. 13-31; offers were solicited electronically, and 78 offers were received. Fiscal 2013 research and development funds in the amount of $311,842 are being obligated at time of award. Air Force Research Laboratory/RIKF, Rome N.Y., is the contracting activity (FA8750-14-C-0001).
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