Defense contractor settles cost-padding civil suit for half-million dollars
Integral Consulting Services (ICS) has agreed to pay over $500,000 in damages to the United States over allegations that it inflated indirect costs while working on a contract with the Army, according to a Justice Department announcement.
ICS, which provides IT solutions including multimodal biometrics, was awarded an Army contract in 2012, W911W5-12-D-0002, to provide identity intelligence analysis support to the Army’s National Ground Intelligence Center’s Biometric Intelligence Program. The federal government alleged that between May, 2012 and June, 2014, the company included costs and expenses from litigation relating to a teaming agreement with another company in its General and Administration (“G&A”) cost pool. The G&A cost pool was spread amongst various ICS government contracts, including the Army contract.
The civil settlement resolves a lawsuit filed in Maryland, where ICS is based, by a relator under the whistleblower provision of the False Claims Act.
Acting U.S. Attorney Stephen M. Schenning commended the work of the Defense Criminal and Civil Investigative Service and the Army Major Procurement Fraud Unit on the case.