U.S. DOJ Settles Case Against DRS

On October 7, 2014, the U.S. Department of Justice settled a case against DRS Technical Services, Inc. (“DRS”), a defense contractor, regarding allegations of fraudulent billing for $13.7 million. Specifically, even though DRS employees did not meet the qualifications required of their positions by DRS’ contracts with the government, DRS billed for their work anyway, resulting in the government paying inflated rates for underqualified employees.

The allegations pertain to DRS’ billing practices between January 2003 and December 2012. At that time, DRS maintained contracts with the Army to provide satellite and wireless network solutions and telecommunication services. Much of this work was in support of the Army’s Iraq and Afghanistan operations and done in conjunction with Rapid Response (“R2”) contracts that permitted the Army to make procurement decisions quickly. Through its subsidiary, DRS provided the U.S. Coast Guard with aircraft maintenance and engineering support. The settlement does not make any findings as to DRS’ liability with regard to these allegations.

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