Government Contractor SAIC Pays $11.75 Million to Settle False Claims Act Case

Science Applications International Corporation (“SAIC”) has agreed to pay $11.75 million to settle allegations that it violated the False Claims Act. Virginia-based SAIC provides scientific, engineering, and technical services to commercial and government customers.

According to the Justice Department, between 2002 and 2012, the New Mexico Institute of Mining and Technology (“New Mexico Tech”) received numerous federal grants from the Department of Homeland Security, the Federal Emergency Management Agency, and the Department of Justice to train first responder personnel. In turn, SAIC was awarded subgrants by New Mexico Tech to develop, manage, and provide the course instruction.

According to a qui tam lawsuit brought in 2012 by SAIC’s former project manager for the first responder training program, Richard Priem, SAIC submitted inflated cost proposals for the program which constituted false claims. The whistleblower alleged that SAIC represented it would use more expensive personnel in the first responder training program than it intended to use and actually did use, resulting in the United States being overcharged.

In settlement of the allegations, SAIC agreed to pay $11.75 million. In accordance with the qui tam provisions of the False Claims Act, the whistleblower will receive a percentage of the settlement proceeds as his reward.