Fort Belvoir, Va. –
DCAA’s Operations Investigative Support Division (OIS) provided investigative support on a $9.5 million settlement case with NORESCO, LLC (NORESCO). The settlement resolves allegations that NORESCO violated the False Claims Act by overcharging numerous federal agencies for energy improvements in connection with 29 federally funded contracts. The violated contracts are specifically designed to help federal agencies implement energy-efficient upgrades at no up-front cost by structuring repayments over time through projected energy savings.
According to the settlement, NORESCO overcharged the government through improper contingency costs on a U.S. Navy project. The contractor added over $3.4 million in undisclosed contingency costs to subcontractor bids, even after contracting officials rejected certain elements of the proposal. Additionally, NORESCO miscalculated financing costs, resulting in projected overpayments totaling more than $5.6 million. After the U.S. Navy investigation raised awareness, NORESCO coordinated with affected agencies to repay the full amount.
While NORESCO cooperated with the investigators and took corrective action, DCAA’s OIS auditors helped with the case and carefully review the technical cost elements. DCAA collaborated with several other federal agency investigative teams including the DoD Office of Inspector General (OIG), the Naval Criminal Investigative Service (NCIS), and multiple other OIGs. DCAA’s audit support helped quantify overstatements and provided objective evidence to resolve the case.
Read the press release for more information.