Deloitte Will Pay Government $11 Million to Settle Pricing Case
Firm allegedly charged GSA more than private customers in IT contract.
Deloitte Consulting LLP has agreed to pay the government $11.38 million to settle allegations that it submitted false claims on its pricing under a General Services Administration information technology contract.
A Justice Department announcement on Tuesday noted that the firm did not admit liability.
“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Principal Deputy Assistant Attorney General Benjamin Mizer, head of the 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.”
Under the contract signed in 2000, Deloitte was to reduce the prices it charged the government if it offered lower prices to specific commercial customers during the course of the contract, Justice said in its release. Between 2006 and 2012, Deloitte allegedly failed to comply with the price reductions clause in its contract, the result being that government customers paid more for Deloitte’s services than did comparable commercial customers.
“American taxpayers deserve fair deals and prices from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa.
Deloitte Services federal media relations manager Megan Doern said in an email to Government Executive, "We are pleased to have resolved this matter. As an organization deeply committed to our U.S. government clients, we have implemented additional GSA schedule processes to protect their interests."