Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Bid-Rigging on NAVO MSRC Contract

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).

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Court Type
Date of Complaint
Contractors Involved Penalty
SAIC $24,900,000
Further Information Released
DOJ Press Release (Sept. 2011) 10/12/2011
Law Firm Press Release 10/12/2011
Complaint 10/28/2009
DOJ Press Release (July 2009) 10/28/2009

See also:

Federal Contractor Misconduct Database