According to PC World, the US Justice Department joined a suit brought against EMC, Booz Allen Hamilton, Acxiom, and Titan Corporation by 2 individuals in Little Rock. The original suit was filed 2 years ago – the new news is Justice’s involvement.
Justice says EMC
. . . gave false statements to the GSA about its commercial pricing so it could get a higher price on its contracts, thereby overcharging the government for products and services, the Justice Department said Monday.
The government stands to recover 3x any losses – plus civil penalties.
It’s only waste, fraud and abuse when the other guy does it.
By law vendors must offer the Feds the same pricing they offer their very best customers. But do they?
AFAIK, “best” pricing is based on contract prices – usually discounts off list – that don’t reflect special terms, such as competitive allowances, that aren’t considerd part of the price. Any major commercial deal will be competitive and allowances are commonplace.
Government spending has risen 155% since 2000, while the purchasing work force has risen 10%. Many deals haven’t had the oversight to ensure the best possible deal.
Maybe that’s why EMC was a big tech supporter of John McCain in the recent election. These figures are for donors giving over $200 and come from a post (Techies choose Obama – by a landslide) I wrote for ZDnet.
There’s a new sheriff in town.
Read all about it
I got a copy of the suit and its exhibits online with the intention of writing about it. But it is even duller than the usual legal brief.
But if you want to give it a go, be my guest. Download the zipped 3.4 MB file here.
Let us know if you find anything juicy.
The StorageMojo take
Breaking up cozy arrangements between consulting firms, vendors and service providers is a Good Thing. Given the commercial revenue crunch right now companies won’t welcome a similar crunch from lucrative government contracts. But it needs to be done.
Courteous comments welcome, of course.