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The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

SAIC

Bid-Rigging on NAVO MSRC Contract

Date: 06/30/2009 (Date of Complaint)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Multiple Agencies

Contracting Party: GSA

Court Type: Civil

Amount: $24,900,000

Disposition: Settlement

Synopsis: The Justice Department joined a False Claims Act whistleblower lawsuit against Science Applications International Corp. (SAIC); Applied Enterprise Solutions (AES); Dale Galloway, Chief Executive Officer of AES; Stephen Adamec, former Director of the Naval Oceanographic Major Shared Resource Center (NAVO MSRC) at the Stennis Space Center in Mississippi; and Robert Knesel, Deputy Director of NAVO MSRC. In April 2004, the General Services Administration (GSA) awarded a $3.2 billion contract to provide support services to the NAVO MSRC to SAIC, which partnered with subcontractors AES and Lockheed Martin Space Operations. The lawsuit alleged the defendants submitted or caused to be submitted false claims and conspired to submit false claims under the contract. It alleged that Adamec and Knesel, then government employees, conspired with Galloway, SAIC, and AES to ensure that they were awarded the contract and then later tried to cover up their actions by destroying computer hard drives and documents. In September 2011, SAIC agreed tol pay the government $20.4 million to settle the lawsuit (plus an additional $4.5 million in fees and costs to the attorneys who represented the whistleblower, David Magee).