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News | Dec. 2, 2022

Auditors Support Investigation Resulting in $8.4 Million Payment

By DCAA Staff Writer

DCAA auditors supported an investigation which resulted in a $8.4 million payment by a contractor.

On November 29, 2022, the Department of Justice announced PowerSecure, Inc. agreed to pay $8.4 million to resolve allegations that it violated the False Claims Act.  PowerSecure was accused of failing to provide certified cost or pricing data when negotiating a sole source contract for the repair and restoration of Puerto Rico's power grid following Hurricane Maria in September 2017.  PowerSecure's failure to disclose this information caused the U.S. Army Corps of Engineers to agree to inflated rates for labor, equipment and basecamp services.

DCAA Operations Investigative Support Technical Specialist Lora Blackburn and Supervisory Auditors Sandy Storzieri and Linda Bettis supported this joint investigation that involved the Justice Department, Homeland Security, and the Defense Criminal Investigative Service. They reviewed PowerSecure's cost and pricing data, contract and financial records; quantified the impact of the of the alleged non-disclosure of cost and pricing data; and supported settlement negotiations.

Read the Department of Justice press release.