The Department of Justice has filed a complaint against CA Inc. for violations of the False Claims Act in connection with a General Services Administration Multiple Award Schedule contract for software licenses, software maintenance, training, and consulting services.
The complaint alleges CA knowingly overcharged the government for software licenses and maintenance by providing incomplete and inaccurate information to GSA contracting officers during negotiation of contract extensions. The government also alleges CA failed to truthfully update its discounting practices during the life of the GSA contract, and repeatedly certified to GSA that its discounting policies and practices had not changed, when in fact its discounts to commercial customers had increased.
Further, the complaint alleges that CA failed to apply properly the contract’s price reduction clause, which required CA to monitor discounts to certain commercial customers, compare these discounts to the discounts given to the government and, if the commercial discounts were higher, pass on those higher discounts to the government. According to the government, CA failed to make those comparisons or, when it did make such comparisons, failed to do so correctly, resulting in the government overpaying for CA’s information technology.
For more information, see the DOJ release.