Two federal contractors agreed to pay a combined $12.75 million to settle claims they used employees without the proper security clearances to perform work for the Defense Information Systems Agency.
NetCracker Technology Corp. and Computer Sciences Corp. agreed to settlements of $11.4 million and $1.35 million, respectively, to resolve the allegations.
Between 2008 and 2013, CSC was the prime on a contract to manage the Defense Department’s telecommunications network, utilizing NetCracker as a subcontractor. During that time, NetCracker allegedly included workers without security clearances, despite clear requirements to the contrary spelled out in the contract.
Due to the alleged breach of contract — the settlement means the case was resolved without a determination of guilt or liability — invoices submitted to DISA by CSC violated the False Claims Act.
“Companies that do business with the federal government have a responsibility to fully meet the terms of their contracts,” said U.S. Attorney Channing Phillips of the District of Columbia. “In addition to holding these two companies accountable for their contracting obligations, this settlement shows that the U.S. Attorney’s Office will take appropriate measures necessary to ensure the integrity of government communications systems.”
The issue was brought to the Justice Department’s attention by former NetCracker employee John Kingsley, who will receive almost $2.4 million of the settlement under the whistleblower provision of the False Claims Act.
