Navmar Applied Sciences Corporation (NASC) has recently reached a settlement of $4.4 million to resolve allegations that the company violated the False Claims Act. The settlement comes after an extensive investigation into NASC's actions related to Defense Contract Audit Agency audits and violations of the False Claims Act.
The U.S. Department of Justice, in collaboration with the U.S. Attorney's Office for the Eastern District of Pennsylvania, launched an investigation into NASC's conduct regarding a series of contracts awarded by the Navy from 2010 to 2012. These contracts encompassed various aspects of intelligence, surveillance, and reconnaissance systems, including hardware, maintenance, technical support services, and the development of advanced sensors and Unmanned Aerial Systems.
The allegations against NASC involve knowingly and improperly double-billing the Navy for labor and material costs on multiple contracts, effectively receiving payment for the same expenses twice. Furthermore, NASC was accused of shifting material costs from one contract to another to surpass cost ceilings and maximize government payments.
U.S. Attorney Jacqueline C. Romero emphasized the significance of the settlement in upholding the integrity of government contracts. She stated that "Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing." Gregory Gross, the Special Agent in Charge of the NCIS Economic Crime Field Office, highlighted the importance of addressing procurement fraud in safeguarding national security.
NASC's agreement to pay $4.4 million serves as a reminder that accountability in government contracts remains a top priority. The settlement demonstrates that any violations will be thoroughly pursued and addressed to protect taxpayer dollars and the integrity of the procurement process.