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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…

‘Alliance Benefits’ Alleged Kickback Scheme

IBM Corp. and PriceWaterhouseCoopers (PWC) separately agreed to pay the U.S. government a total of $5.3 million to settle allegations that the companies solicited and provided improper payments on technology contracts with government agencies. IBM agreed to pay $2.97 million and PWC will pay $2.3 million to settle the complaints, which alleged IBM and PWC requested or made kickback payments, known as “alliance benefits,” to other companies with whom they had global alliance relationships and then did not disclose these conflicts of interest. Other prominent tech companies – including Accenture, Hewlett-Packard, and Sun Microsystems – were also alleged to have participated in this arrangement since the late 1990s. See related Accenture pending instance, “False Claims On Hardware, Software & Technology Services Sales” and IBM instance, “‘Alliance Benefits’ Alleged Kickback Scheme.”

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Multiple Agencies
Court Type
Civil
Disposition
Settlement
Date of Announcement
8/16/2007
Contractors Involved Penalty
Total
IBM Corporation $2,972,038
Further Information Released
DOJ Press Release 8/18/2007

See also:

Federal Contractor Misconduct Database