The Justice Department last week said that SAIC [SAI] has agreed to a $5.8 million fine to settle allegations that it violated the False Claims Act by submitting claims under a federal contract that the company knew had been awarded in violation of federal procurement regulations.
The Justice Department said that the General Services Administration (GSA) in 2006 awarded SAIC a Blanket Purchase Agreement for professional and engineering services related to the study and evaluation of new products and emerging technologies. However, the department says that the company provided false information to the GSA to help get the award, alleging that SAIC “caused another individual to falsely represent himself as an employee of the Senior Executive Staff of the Department of Defense and the Director of another federal agency.”
“SAIC received a contract awarded by GSA, based on fictitious information,” GSA Inspector General Brian Miller said in a statement. “This deceptive scheme shows that we must be on the lookout for all forms of contract fraud.”
The Justice Department said that a “substantial” amount of the work that SAIC received under the GSA contract was for U.S. Central Command at MacDill AFB, Fla.
Richard Ferner, a retired Air Force lieutenant colonel, brought the lawsuit against SAIC under the whistleblower provision of the False Claims Act. Ferner’s share of the settlement is $977,500.