Dell settles charges that it overcharged the US Army on computing contracts

Date:
Wed, 20 Nov 2024 15:29:00 +0000

Description:
Dell and Iron Bow accused of artificially inflating US Army contract prices, violating the False Claims Act.

FULL STORY

Dell Technologies and Iron Bow Technologies have agreed to pay more than $2 million each to resolve allegations that they overcharged the US Army under a government computing contract.

The settlements, confirmed in an announcement by the US Department of
Justice, address claims of non-competitive bids submitted by the companies to secure army contracts at overinflated charges.

Dell will pay out $2.3 million, with Virginia-based Iron Bow set to pay $2.05 million, to settle the claims.

Dell and Iron Bow settlements

According to the DOJ, Dell operated a deal registration program that gave
Iron Bow preferential pricing for Dell computer hardware. This subsequently
let Iron Bow offer lower bids to the Army, while Dell submitted higher bids
to guide the army towards Iron Bow.

Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Departments Civil Division, stated: The United States relies on competition to get the best value and price for the American taxpayers.

US Attorney Prim F. Escalona for the Northern District of Alabama added:
Fraud in the government contracting process costs taxpayers untold dollars
each year We will continue to work with our federal law enforcement partners
to investigate and pursue those who commit government contracting fraud.

The settlement also aims to resolve a whistleblower lawsuit filed by Brent Lillard, an executive of another IT reseller, under the False Claims Act. A $345,000 slice of Dells $2.3 million payout is destined for Lillard.

This isnt the first time that software and hardware providers have been
accused of overcharging the US government and its agencies. Earlier this
month, the DOJ shared two instances of fraudulent IT contracts which resulted in six individuals being charged or indicted.

German company SAP was also raided by the FBI amid a longstanding
investigation into allegations that the company had overcharged the US government and military for use of its software.

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Link to news story: https://www.techradar.com/pro/dell-settles-charges-that-it-overcharged-the-us- army-on-computing-contracts

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