In March 2004, the Pentagon’s inspector general released a report on Iraq humanitarian assistance contracts awarded for the Coalition Provisional Authority. A large portion of the contracts under review were awarded on a sole-source basis to SAIC. The inspector general found irregularities in both the award and administration of the contracts, including instances of improper or unsupported billing and weak oversight….  more»

SAIC was charged with defrauding the government over its efforts to design a flat panel display screen for fighter jets. The government alleged that SAIC received millions of dollars but never produced a fully operational model and misled the government about the status of their progress. According to media reports, in December 1995, SAIC settled with the government and paid a fine of $2.5 million….  more»

Former SAIC employee Carl Bell pleaded guilty to multiple charges in connection with his work as SAIC’s chief systems engineer for the New York City information technology project, CityTime. The government alleged that, from 2003 to 2011, Bell received at least $5 million in kickbacks from Technodyne LLC, the principal subcontractor on the project….  more»

In March 2012, SAIC agreed to pay $500.4 million under a deferred prosecution agreement to resolve claims of fraud occurring on the CityTime information technology contract with New York City. SAIC admitted it failed to investigate and notify the city of claims that project manager Gerard Denault steered work to subcontractor Technodyne LLC in exchange for kickbacks. SAIC agreed to the filing of one count of conspiracy to commit wire fraud and agreed to disgorge proceeds of the offense, including $370.4 million in restitution to the city and a $130 million penalty. The charge will be dropped after 3 years if SAIC pays the money and cooperates with federal investigators. See related SAIC instances “U.S. v. Denault (CityTime Contract Fraud)” and “U.S. v. Bell (CityTime Contract Fraud)….  more»

According to a GAO report cited by Senator Harkin and Representative DeFazio, SAIC paid $1,124,850 to settle a case of “Voluntary Disclosure Cost/Labor Mischarging.”…  more»

SAIC was among three government contractors which paid “the United States a total of $230,000 to settle allegations [of False Claims Act violations] in which they allegedly failed to properly test electrical cables installed at a U.S. Treasury facility under construction in Fort Worth, Texas, that prints money… The United States alleged that subcontractors falsified the testing of certain power cables during the construction of the Western Currency Production Facility in Fort Worth. The improperly tested cables were ultimately replaced. SAIC was the prime contractor on the project. AlliedSignal, through its Bendix Field Engineering Corporation subsidiary, was retained to install certain hardware and AlliedSignal, in turn, awarded a subcontract to Lloyd Electric’s predecessor, J.V. Clark Electric Co. Inc., to install electrical wiring and cables at the facility.” According to a company spokesperson, SAIC’s share of the settlement was $125,000….  more»

SAIC paid the government $2.5 million to settle allegations that it made false claims and engaged in defective pricing on delivery orders with the Air Force for environmental clean-up at Kelly Air Force Base in San Antonio, Texas. Woodlee’s complaint alleged that SAIC knowingly failed to disclose information about its costs during price negotiations with the Air Force. The lawsuit alleged that SAIC inflated its estimates of the amount of labor hours it would require to complete the work….  more»

Former SAIC employee Bernice Stanfill sued the company for sex discrimination and breach of her employment contract. She prevailed at trial in 1992 and won a $3.1 million jury award, which was later overturned on appeal. At a 1997 retrial on her breach of contract claim, she was awarded $1,250,000 in compensatory damages….  more»

A “review of SAIC’s subcontractor labor charges found that FBI was billed twice for the same subcontractor invoice totaling $26,335. SAIC officials agreed that they double billed and stated that they would make a correction.”…  more»

SAIC agreed to pay $484,500 to settle alleged False Claims Act violations involving a contract to design a computer program for the Department of Defense called the Defense Occupational and Environmental Health Readiness System (DOEHRS). The government claimed that SAIC repeatedly misrepresented its progress on the project and caused the government to overpay for its services….  more»

The Justice Department joined a False Claims Act whistleblower lawsuit against Science Applications International Corp. (SAIC); Applied Enterprise Solutions (AES); Dale Galloway, Chief Executive Officer of AES; Stephen Adamec, former Director of the Naval Oceanographic Major Shared Resource Center (NAVO MSRC) at the Stennis Space Center in Mississippi; and Robert Knesel, Deputy Director of NAVO MSRC. In April 2004, the General Services Administration (GSA) awarded a $3.2 billion contract to provide support services to the NAVO MSRC to SAIC, which partnered with subcontractors AES and Lockheed Martin Space Operations. The lawsuit alleged the defendants submitted or caused to be submitted false claims and conspired to submit false claims under the contract. It alleged that Adamec and Knesel, then government employees, conspired with Galloway, SAIC, and AES to ensure that they were awarded the contract and then later tried to cover up their actions by destroying computer hard drives and documents. In September 2011, SAIC agreed tol pay the government $20.4 million to settle the lawsuit (plus an additional $4.5 million in fees and costs to the attorneys who represented the whistleblower, David Magee)….  more»

The Nuclear Regulatory Commission filed suit against SAIC, alleging false and/or fraudulent representations to the effect that SAIC was providing unbiased services to the NRC. The NRC claimed that at the time the NRC hired SAIC to formulate guidelines on recycling radioactive waste, they were unaware SAIC had other consulting and contractual relationships that created a conflict of interest, which led to SAIC submitting false and/or fraudulent bills and other statements to the government in violation of the False Claims Act. In July 2008, a jury found that SAIC knowingly submitted 60 false claims for payment and knowingly made 17 false statements to get claims paid on two NRC contracts and awarded the United States $1.97 million in damages (tripled to $5.9 million under the False Claims Act). The jury also found SAIC breached a 1992 contract with the NRC and awarded an additional $78 in damages. The court also ordered SAIC to pay civil penalties of $7,500 for each of the 77 false claims and statements (for a total of $577,500). In December 2010, the Court of Appeals upheld the judgment as to the government’s breach of contract claim but vacated the judgment as to FCA liability due to an erroneous jury instruction….  more»

Former Deputy Assistant Attorney General Mark A. Boster paid $30,000 in a civil settlement to resolve allegations that he violated conflict of interest laws for federal employees (18 U.S.C. §207(c)). In April 1999, Boster called the Justice Department in regard to a matter involving his current employer, SAIC. Boster left the Justice Department in January 1999. Boster’s phone call was an apparent violation a law prohibiting certain senior officials from contacting the government on behalf of an employer within one year of leaving the government….  more»