Government Contractor Settles Claims That It Billed for Personnel Who Lacked Required Security Clearances

ALEXANDRIA, Va. – Deloitte Consulting LLP, located in New York, agreed to pay $220,885.77 to settle claims that it billed the Department of Health and Human Services, Program Support Center (HHS-PSC) for labor performed by personnel who did not possess the security clearances required by a government contract.

Deloitte Consulting submitted a written contractor disclosure to HHS-PSC. Specifically, the disclosure stated that Deloitte Consulting was unable to validate the clearance status of seven employees who performed work on a contract awarded by HHS-PSC. As a result, Deloitte Consulting considered those employees not to have met the base clearance level in the contract. Following an investigation by the U.S. Attorney’s Office, Deloitte Consulting agreed to pay the amounts billed for personnel whose clearance status could not be validated.

Deloitte Consulting received full credit under the Department of Justice’s guidelines for taking disclosure, cooperation, and remediation into account: Justice Manual § 4-4.112.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Health and Human Services, Office of General Counsel; the Department of Health and Human Services, Office of Inspector General; Department of Defense, Office of Inspector General, Defense Criminal Investigative Service’s Mid-Atlantic Field Office; Department of the Army Criminal Investigation Division, Fraud Field Office; and the Naval Criminal Investigative Service – Economic Crimes Field Office, Washington, DC.

This matter was investigated by Assistant U.S. Attorney Tanya Kapoor.

The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.