DRS Technical Services Inc. (DRS) will pay the government $13.7 million to settle fraud allegations, the Justice Department announced today. DRS, a Virginia-based subsidiary of DRS Defense Solutions LLC, provides a variety of wireless network solutions, security systems and telecommunication services for both the government and the private sector.
The Defense Department awarded time and materials contracts to DRS between 2003 and 2012 to provide services and supplies to the U.S. Army’s Communication and Electronics Command (CECOM) in Iraq and Afghanistan. DRS allegedly submitted bills to CECOM for work that was supposed to be performed by individuals with qualifications described under the terms of the contract. According to the Justice Department, the services were performed by individuals who did not possess the necessary qualifications, causing the government to overpay for the services.
Similarly, between 2009 and 2011, DRS allegedly billed the U.S. Coast Guard’s Aviation Logistics Center for services rendered by individuals that did not have the necessary qualifications to perform the services, per the terms of the contract. This too caused the government to pay an inflated price for the services.
The claims resolved under the terms of today’s settlement announcement are based solely on allegations and carry no determination of guilt. This case demonstrates the need for defense contractor whistleblowers to come forward if they have knowledge of fraud. In this type of case, a whistleblower that helps expose fraud is entitled to up to 25 percent of any money successfully recovered by the government.