On August 15, 2001, the Department of Justice announced that Sverdrup Technology, Inc., a subsidiary of Jacobs Engineering, Inc., “agreed to pay the government $2.5 million to resolve allegations of mischarging the National Aeronautics and Space Administration (NASA)…The allegations stem from mischarging practices carried out by two laboratories operated by Sverdrup at the Stennis Space Center in Hancock, Mississippi. In both instances, NASA alleged that [Sverdrup] mischarged the United States when it had the technical services contract at the Stennis Space Center in the early to mid-1990’s. In the first case, the court on January 24, 2001 found that Sverdrup…violated the False Claims Act when it mischarged overhead labor and materials costs as direct costs, which allowed the company to increase its profits by disguising the true extent of its overhead expenses…The second case brought by the government against Sverdrup involved similar allegations, but at a different laboratory operated by the company at the Stennis Space Center.”