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News | Feb. 13, 2024

DCAA Western Region auditors helped investigate a case that resulted in a $5 million settlement

By DCAA Staff Writer

Merrill Technologies Group, Inc. (MTM), and its subsidiaries agreed to pay $5 million to resolve False Claims Act violations. The violations alleged that MTM overstated cost or pricing data in a subcontract proposal for work under a contract with the U.S. Department of the Army. The government alleged that MTM’s proposal caused overcharges at both the prime and subcontractor levels, ultimately leading to inflated costs for the government.

Over a 6-year period, DCAA auditors investigated by reviewing overhead labor, comparing multiple types of quotes, reviewing emails, and creating damage models. The DCAA Operations Investigative Support Division (OIS) received support from Investigative Auditors Carl Fletcher and James Knauss, and Supervisory Auditors Mark Saunders and Jeff Beck. The damage models that DCAA auditors created was the basis used to negotiate the settlement.

Read the full Department of Justice press release