Based on a Department of Justice press release related to a recent court case: Gen Digital, Formerly Symantec Corp., Pays $55.1M False Claims Act Judgment for Knowing Overcharges to General Services Administration. TGG thought this was a good reminder to all GSA and VA Schedule Vendors (not participating in the GSA TDR program) about the importance of providing accurate, current, and complete Commercial Sales Practices data when submitting new offers, contract extensions or modifications to GSA. In this case the Court found Gen Digital (formerly Symantec Corp), liable for making knowingly false claims to the United States when it mispresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) Schedule contract. In particular, the court concluded that Symantec made false statements to GSA during contractual negotiations in 2006 and early-2007 and continued to falsely certify throughout the performance of the contract through Sept. 30, 2012, that its disclosures of its commercial sales practices were current, accurate and complete.
The $55 million judgement against the contractor was tied to both false disclosures that induced GSA to accept and then continue to pay higher prices than it would have had it known of Symantec’s actual commercial pricing practices and to GSA Price Reduction Violations made by the contractor. Please contact TGG with any compliance questions related to the False Claims Act, Commercial Sales Practices or the GSA Price Reduction Clause. We have extensive experience in developing contract compliance plans and in advising clients in staying in compliance with GSA and VA Schedule contracts.