Deloitte Consulting LLP to Pay $11.38 Million in Damages for Contract Negligence

Cinnaminson, NJ–  New York-based consulting firm, Deloitte, has agreed to pay $11.38 million in reparations for failure to lower its prices per General Service Administration (GSA) contracting, costing government consumers millions from 2006-2012.

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Deloitte Consulting LLP Agrees to Pay $11 Million for Alleged False Claims Related to General Services Administration Contract

The Department of Justice announced today that Deloitte Consulting LLP (Deloitte) has agreed to pay $11.38 million to resolve allegations under the False Claims Act that it submitted false claims under a General Services Administration (GSA) contract.  Deloitte is a nationwide consulting company headquartered in New York City.

“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “As this settlement demonstrates, we will take action against those who knowingly fail to live up to the terms of their government contracts.”

In 2000, GSA awarded Deloitte a contract for the provision of information technology services.  The contract required Deloitte to reduce the prices it charged the government if it offered lower prices to specific commercial customers during the course of the contract.  This settlement resolves allegations that between 2006 and 2012, Deloitte failed to comply with the price reductions clause in its contract, resulting in government customers paying more for Deloitte’s services than comparable commercial customers.

“American taxpayers deserve fair deals and prices from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa.  “I appreciate the hard work and dedication that led to this significant recovery.”

This case was handled by the Civil Division’s Commercial Litigation Branch and the GSA Office of Inspector General.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

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