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News | Sept. 21, 2023

Auditors Support Investigation Resulting in $4.4 Million Settlement

By DCAA Staff Writer

DCAA Auditor Gina Collier, Supervisory Auditors Sandy Storzieri and Tim Chase, and former Auditors Tim Griffith and Nellymar Cartegena supported an investigation that resulted in a $4.4 million settlement.

Navmar Applied Sciences Corporation (Navmar), headquartered in Pennsylvania, has agreed to pay $4.4 million to resolve allegations that it violated the False Claims Act by knowingly double billing and shifting certain labor and material costs under a series of contracts with the Department of the Navy (Navy) to manufacture, design and test emerging intelligence, surveillance and reconnaissance technologies.

The United States alleged that Navmar knowingly billed certain labor and material costs on one Navy contract, subsequently billed the same costs on another contract and was therefore paid twice for the same costs. The United States further alleged that Navmar knowingly and improperly shifted material costs incurred under certain contracts to other contracts in violation of the Federal Acquisition Regulation requirement that costs incurred under a contract be allocable to that contract, resulting in Navmar recovering costs it otherwise would not have. 

DCAA’s auditors supported the investigation by preparing timelines showing contract funding, performing analysis of billed costs, preparing the damage model, and participating in negotiations. They also compared documents provided during the investigation to documents obtained by DCAA’s audit office during the conduct of a prior audits to identify transfer patterns and duplicate billings.

Read the Department of Justice press release.