(The following is a reformatted version of a press release
issued by The U.S. Justice Department and received via
electronic mail. The release was confirmed by the sender.) 
JULY 3, 2013 
Contractor Allegedly Submitted Claims on Illegal Federal
Contract for Testing Services 
WASHINGTON - The Justice Department announced today that Science
Applications International Corporation (SAIC) has agreed to pay
$5.75 million to settle allegations that it violated the False
Claims Act by submitting claims under a contract with the
General Services Administration (GSA) that it knew had been
awarded in violation of federal procurement regulations.  SAIC
provides scientific, engineering and technical services to
commercial and government customers and is headquartered in
Northern Virginia. 
In 2006, GSA awarded a blanket purchase agreement (BPA) to SAIC
for the provision of professional engineering and consulting
services.  Those services related to the study and evaluation of
new products and emerging technologies.  The United States
contended that SAIC personnel provided false information to GSA
contracting officials to induce them to award the BPA to SAIC.
In particular, the United States alleged 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 performed a
substantial number of the task orders it received under the BPA
for the U.S. Central Command at MacDill Air Force Base in Tampa,
“Federal contracts must be awarded based on full disclosure and
fair dealing,” said Stuart F. Delery, Acting Assistant Attorney
General for the Civil Division of the Department of Justice.
“It is completely unacceptable for taxpayer dollars to be paid
under circumstances where the integrity of the contracting
process has been undermined.” 
“This recovery illustrates the emphasis and resources we place
on detection and recovery of fraud, waste and abuse in
government procurement contracts - particularly those involving
defense contractors and others who supply goods and services to
the Department of Defense, the branches of our military, and
their bases,” said Robert E. O’Neill, U.S. Attorney for the
Middle District of Florida. 
“SAIC received a contract, awarded by GSA, based on fictitious
information,” said GSA Inspector General Brian D. Miller. “This
deceptive scheme shows that we must be on the lookout for all
forms of contract fraud.” 
The lawsuit against SAIC was originally filed under the
whistleblower provisions of the False Claims Act by Richard
Ferner, a retired Lt. Colonel in the U.S. Air Force, in the U.S.
District court for the Middle District of Florida.  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 for a violation.  Under the
Act’s whistleblower provisions, a private party may file suit on
behalf of the United States and share in any recovery.  The
United States may elect to intervene and take over the case, as
it did here.  Mr. Ferner’s share of the settlement has been
determined to be $977,500. 
The claims resolved by this settlement are allegations only and
there has been no determination of liability.  The case is
United States ex rel. Ferner v. SAIC, No. 8:10-cv-741-T-33-AEP
(M.D. Fla.) 
(bjh) NY 
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