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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

U.S. ex rel. Kingsley v. NetCracker Technology, et al. (False Claims on DISA Contract)

Computer Sciences Corporation (CSC) agreed to pay $1.35 million to resolve False Claims Act allegations of billing the government for workers lacking security clearances on a Defense Information Systems Agency (DISA) contract. CSC was the prime contractor on the contract, and NetCracker Technology Corporation (a subsidiary of NEC Corporation) was the subcontractor. The government alleged that, from 2008 through 2013, NetCracker employed individuals without security clearances to perform work when it knew the contract required those individuals to have security clearances, resulting in CSC submitting false claims for payment to DISA. CSC provided the following statement to the Project On Government Oversight regarding the settlement: “On October 27, CSC reached a $1.35 million settlement with the U.S. Department of Justice in connection with a breach of CSC’s contract with the Defense Information Systems Agency (DISA). The settlement relates to improper actions taken by CSC’s directed subcontractor, NetCracker Technology Corporation/NetCracker Government Services Corp., which violated DISA’s security requirements under the contract. CSC believes it is as much a victim of NetCracker’s conduct as is our DISA customer and agreed to settle this case because the litigation costs outweigh those of the settlement. Security is of the utmost importance to CSC. We will continue to fully cooperate with the government regarding these and any other issues.”

Misconduct Type
Government Contract Fraud
Enforcement Agency
Justice
Contracting Party
Defense - General
Court Type
Civil
Disposition
Settlement
Date of Settlement Agreement
10/27/2015
Contractors Involved Penalty
Total
Computer Sciences Corporation $1,350,000
Further Information Released
DOJ Press Release 11/2/2015
Settlement Agreement 10/27/2015
Second Amended Complaint 10/19/2015

Federal Contractor Misconduct Database