Justice joins false claims suit against SAIC

 

Connecting state and local government leaders

Science Applications International Corp. plans to strongly defend itself against a whistle-blower lawsuit involving a General Services Administration contract to support naval facility in Mississippi.

Science Applications International Corp. said this week that it will strongly defend itself against a False Claims Act lawsuit filed against the company by a whistle-blower and federal authorities, characterizing the lawsuit as “without merit.”

“SAIC has cooperated fully with the government inquiry and we have conducted our own independent review of the claims,” Melissa Koskovich, a spokeswoman for SAIC, said in a statement today.

“The government has failed to identify any information provided to SAIC that could have provided SAIC with an unfair competitive advantage in the procurement process. We believe the government’s legal claims are without merit and we intend to vigorously defend against them,” Koskovich said.

On July 2, the Justice Department announced it had joined a False Claims Act whistle-blower suit against SAIC and four other parties alleging that they conspired to defraud the government on a General Services Administration contract to support a naval facility in Mississippi.

The other defendants are Applied Enterprise Solutions; Dale Galloway, chief executive of Applied Enterprise Solutions; Stephen Adamec, former director of the Naval Oceanographic Major Shared Resource Center at the Stennis Space Center in Mississippi; and Robert Knesel, deputy director of the naval shared resources center, according to the DOJ news release.

The lawsuit, filed in U.S. District Court for the Southern District of Mississippi, pertains to a GSA contract in which SAIC was to provide support to a branch of the naval oceanographic center. The contract was awarded to SAIC in April 2004. SAIC subsequently teamed with Applied Enterprise Solutions and Lockheed Martin Space Operations to perform the contract, the Justice Department said.

The suit alleges that the government employees at the naval center shared advance procurement information about the solicitation with SAIC and took other actions to bias the contract selection in favor of SAIC.

The case was filed by whistle-blower David Magee, a former employee at the naval center. Under the False Claims Act, a private party, known as a "Relator," can file an action on behalf of the United States and receive a portion of the amount recovered. The U.S. government may recover three times the amount of its losses, plus penalties.

"Those who do business with the government must act fairly and in accordance with the law," Tony West, assistant attorney general for the civil division, said in the July 2 news release. “As this case illustrates, the Department of Justice will actively pursue legal action against both contractors and federal employees who seek to gain an unfair advantage in the procurement process."

The Justice Department press release describes the GSA contract as worth up to $3.2 billion. However, SAIC today said the aggregate payments to SAIC under the contract task orders totaled approximately $115 million and that $3.2 billion was the ceiling value of the contract.

SAIC also commented further today about its actions in the False Claims lawsuit.

“SAIC provided the government high-quality services under this contract, and there are no claims by the government to the contrary,” Koskovich said. “SAIC is a highly ethical company committed to complying with all applicable laws and regulations. We spend significant time and effort operating a comprehensive and rigorous ethics and compliance program that includes policies, procedures, mandatory training and audit tools. We are proud of our commitment and track record of ethical performance and legal compliance.”

In addition, SAIC responded to allegations in the filing that suggest that SAIC was associated with the destruction of records by a former Navy employee. “SAIC has destroyed no records associated with this case; to the contrary, upon learning of the government’s investigation, we took immediate steps to preserve all potentially relevant records and have made available any and all records requested,” Koskovich said.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.