The Justice Department announced today that Hewlett-Packard Co. (HP) has agreed to pay $32.5 million to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. HP is a manufacturer and vendor of information technology products and services headquartered in Palo Alto, California.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled.”
The United States alleged that under a contract between HP and the USPS, HP overcharged USPS by failing to comply with pricing terms of the contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts. The United States also alleged that HP made misrepresentations during the negotiation of the contract regarding its pricing and its plans to ensure it would provide the required most favored customer pricing.
“The Major Fraud Investigations Division (MFID) within the Postal Service Office of Inspector General fully investigates those contractors who wrongly take advantage of the Postal Service,” said Thomas Frost, MFID’s Special Agent in Charge. “The Postal Service and the public must have complete confidence in the procurement process and MFID will continue to work diligently to make that happen.”
This matter was jointly investigated by the U.S. Postal Service, Office of the Inspector General and the Department of Justice’s Civil Division. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Cynthia Collins, former Secretary-Treasurer of American Postal Workers Union (APWU) Local 12 (located in Athens, Ga.), charging her with one count of embezzlement totaling $23,345, in violation of 29 U.S.C. 501(c), and one count of falsification of an annual financial report filed by the labor union, in violation of 29 U.S.C. 439(b).
More bilking of the USPS, so in turn let’s give HP a new 275 million dollar contract. Don’t worry it will be OK. Burn the management side of USPS down to the ground and then rebuild it, cause they are morons and criminals. Start with PMG, as bugs bunny says-what a maroon!
Since the craft employees get COLA and Mgmt. doesn’t, I think the fair thing to do is divide that $32.5 Mill to all EAS employees. It’s only fair, and it’s the right thing to do!!