UNITED STATES FILES FRAUD COMPLAINT AGAINST DYNAMICS RESEARCH
UNITED STATES FILES FRAUD COMPLAINT AGAINST DYNAMICS RESEARCH BOSTON, Nov. 5 /PRNewswire/ -- The Department of Justice has filed
a civil complaint against Dynamics Research Corporation ("DRC") of Andover, Mass., charging that it violated the Truth In Negotiations Act by failing to disclose accurate, complete and current cost and pricing data in negotiating an Air Force contract.
Assistant Attorney General Stuart M. Gerson, head of the Civil Division, and United States Attorney Wayne A. Budd, said the complaint, filed in U.S. District Court in Boston on Monday, involved a $59.9 million contract for computer software that allows the Air Force to track all aspects of its F-16 aircraft. They said the complaint, filed under the False Claims Act, is seeking treble damages for fraudulent payments of more than $1 million, plus civil penalties of $10,000 for each violation of the Act. The payments included $213,387 in 1985, $759,021 in 1987 and $115,664 in 1989. According to the complaint, the Air Force solicited a contract bid for the system from DRC in 1984. In negotiations that were subject to Truth In Negotiations Act, DRC certified that all pricing data was accurate, complete and current. The Air Force relied upon that certification in awaring the contract to DRC on July 5, 1985. The Complaint said that DRC knowingly failed to disclose to the Air Force during negotiations that it had pricing arrangements with three separate vendors under which DRC received up to a 30 percent discount from the list price of equipment used in the contract. DRC subsequently billed the government for the list price of the equipment although it received a discount because of the pricing arrangements, the civil action alleges. The government said DRC violated the False Claims Act by submitting the claims for payment based upon the list price of the equipment. The case is being prosecuted by attorneys Stephen J. Segreto of the Commercial Litigation Branch of the Civil Division of the Department of Justice, and Countess C. Williams of Budd's Civil Enforcement and Defense Bureau. -0- 11/5/91 /CONTACT: Press Officer at the U.S. Attorney's Office, 617-223-9445/ DD -- NE020 -- 1457 11/05/91 18:12 EST
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|Date:||Nov 5, 1991|
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