SAIC pays $5.75M to settle GSA allegations

Science Applications International Corp. has agreed to pay $5.75 million to settle allegations that it violated the False Claims Act.

"SAIC disputes the allegations brought in a complaint by DOJ but agreed to settle to avoid cost of protracted litigation," a company spokesperson said in a statement on the matter.

The False Claims Act prohibits the submission of false claims for government money or property, and allows the United States to recover treble damages and penalties fro a violation.

SAIC allegedly submitted claims under a contract with the General Services Administration that it knew had been awarded in violation of federal procurement regulations, according to a GSA release.

The controversy stemmed from a blanket purchase agreement that GSA awarded SAIC in 2006; SAIC was to provide professional engineering and consulting services under the agreement.

Those services were related to the study and evaluation of new products and emerging technologies, and the allegations were that SAIC personnel provided false information to GSA contracting officials in order to coax them into awarding the BPA to the company, GSA said.

Specifically, the company was alleged to have caused another individual to falsely represent himself as an employee of the Defense Department’s senior executive staff, and as the director of another agency.

Under the BPA, SAIC ended up performing a number of the task orders it was awarded for the U.S. Central Command at MacDill Air Force Base in Tampa, Fla.

In a formal statement regarding the settlement, SAIC said that it "was and continues to be fully cooperative with the federal government and transparent in disclosure of information to the DOJ."

"SAIC continues to operate as an extremely ethical and professional company, with the goal of always providing our customers the highest level of technical expertise to help them meet their mission and performance goals," the company said.