IT CONTRACTOR CA PAYS $45 MILLION FOR SCHEDULE NON-COMPLIANCE

GSA IT 70 Schedule contractor CA is paying the Department of Justice $45 million for failure to fully disclose its commercial sales and discounting practices.  In addition, the company must pay its legal and expert witness fees and possibly the legal fees of the plaintiff, making the total expense of the case close to $50 million.  CA was accused of violating both the Defective Data and Most Favored Customer portions of the Schedule’s Price Reduction Clause.  Although not a new monetary record, the fine underscores just how expensive the risks of non-compliance can be.  While most Schedule contractors don’t set out to commit fraud, many do fail to pay attention to the connection between their commercial business practices and how they sell to the federal government.  It is worth noting that $45 million can buy a lot of improved internal communication.  The CA case also underscores the importance of taking employee concerns seriously.  The case was brought by a former employee.  She will receive $10.1 million for her role in originating the case.