Fort Belvoir, Va. –
DCAA auditor Maria Rosalinda Perez-Rivera, Supervisory Auditor Fei Lincoln and Technical Specialist Elba Piligrino assisted in an investigation leading to a $10 million payment.
Sierra Nevada Corporation (SNC) settled with the Department of Justice, paying $10 million to resolve allegations the company violated the federal False Claims Act. SNC was accused of knowingly overcharging labor costs and inflated rates in two separate matters. The improper charges resulted from SNC billing duplicate labor hours, premium rates, and unauthorized extended hours under the Army’s Multi-Sensor Aerial Intelligence Surveillance Reconnaissance (MAISR) program and erroneously accruing and expensing certain bonus costs, resulting in application of inflated rates more broadly charged to contracts with several federal agencies. The case was handled by the DOJ in a coordinated effort with the Defense Contract Management Agency, DCAA and multiple Defense Investigative groups.
DCAA Operations Investigative Support auditors supported this effort by reviewing contractor records, developing damage models, and coordinating with investigators. This case was initiated by a suspected irregularity referral from the cognizant DCAA audit team.
Read the Department of Justice press release.