Contracting

IT contractor to pay $45 million to settle software overcharge

Shutterstock image: checking documents. 

Systems software vendor CA will pay $45 million to resolve allegations of overcharging the General Services Administration for software licenses and maintenance.

The settlement, announced by the Justice Department on March 10, resolves allegations that CA misrepresented its commercial pricing to GSA in a 2002 software license deal, which was extended in 2008 and 2009. 

The settlement "demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds," said Chad A. Readler, acting assistant attorney general in the Civil Division of the Justice Department. "We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items," Readler said in a statement.

CA allegedly provided false information to GSA about the discounts it gave commercial customers for its software licenses and maintenance services. Under its contract with GSA, CA's pricing was supposed to track with discounts available to commercial customers. Additionally, DOJ said the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.

The case was spurred by a whistleblower complaint by a former CA employee. Under the whistleblower statute, the former employee Dani Shemesh receives over $10.1 million as part of the settlement.

About the Author

Mark Rockwell is a senior staff writer at FCW, whose beat focuses on acquisition, the Department of Homeland Security and the Department of Energy.

Before joining FCW, Rockwell was Washington correspondent for Government Security News, where he covered all aspects of homeland security from IT to detection dogs and border security. Over the last 25 years in Washington as a reporter, editor and correspondent, he has covered an increasingly wide array of high-tech issues for publications like Communications Week, Internet Week, Fiber Optics News, tele.com magazine and Wireless Week.

Rockwell received a Jesse H. Neal Award for his work covering telecommunications issues, and is a graduate of James Madison University.

Click here for previous articles by Rockwell. Contact him at [email protected] or follow him on Twitter at @MRockwell4.


Featured

  • Defense
    Soldiers from the Old Guard test the second iteration of the Integrated Visual Augmentation System (IVAS) capability set during an exercise at Fort Belvoir, VA in Fall 2019. Photo by Courtney Bacon

    IVAS and the future of defense acquisition

    The Army’s Integrated Visual Augmentation System has been in the works for years, but the potentially multibillion deal could mark a paradigm shift in how the Defense Department buys and leverages technology.

  • Cybersecurity
    Deputy Secretary of Homeland Security Alejandro Mayorkas  (U.S. Coast Guard photo by Petty Officer 3rd Class Lora Ratliff)

    Mayorkas announces cyber 'sprints' on ransomware, ICS, workforce

    The Homeland Security secretary announced a series of focused efforts to address issues around ransomware, critical infrastructure and the agency's workforce that will all be launched in the coming weeks.

Stay Connected