IT Contractor Settles Charges It Inflated Indirect Costs

The Department of Justice has announced that Vector Planning and Services Inc., of Chantilly, Virginia, has agreed to pay $6.5 million to settle False Claims Act allegations that it inflated claims for payment under several Navy contracts.

VPSI has a number of contracts to provide information technology, systems engineering, and management consulting services. The government alleged that from 2005 to 2009, VPSI inflated its indirect cost billings by improperly including direct costs, for which it had already been paid, in indirect cost accounts that were then allocated across its government contracts and billed again. The government further alleged that VPSI submitted claims for other costs that were never incurred.

For more information, see theĀ DoJ news release.

About William Van Huis

Bill Van Huis is a Senior Writer/Analyst for Wolters Kluwer Law & Business who tracks and analyzes new regulations impacting federal government contracting. He also follows court decisions involving bid protests and contract disputes. You can find his work in WK publications like Government Contract Reports and the FAR and DFARS Matrix Tools. Bill is a Certified Professional Contracts Manager, and he has a law degree from Southern Illinois University, where he graduated summa cum laude. Prior to joining WK, Bill worked both inside and outside state and local government in the areas of procurement and municipal finance. Bill also worked as a staff attorney for the Illinois Supreme Court.
This entry was posted in Cost Principles, False Claims Act and tagged . Bookmark the permalink.

Leave a Reply

Your email address will not be published.