Government Contractor Pays $450,000 To Resolve Breach Of Contract Allegations

PENSACOLA, FLORIDA – Science Applications International Corporation (“SAIC”) entered into a settlement agreement to resolve breach of contract claims related to work to be performed in Bahrain in 2019.   The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.

“American taxpayers work hard each day to provide for their families and through their efforts fund both the security and essential functions of our government,” said U.S. Attorney Coody. “Accordingly, our fellow citizens should receive the full measure of those services. This resolution demonstrates our continuing commitment to ensure that government contractors fulfill all contract obligations and are held accountable for the failure to do so.”

The United States contended that SAIC was responsible for breach of a government contract awarded in January 2019 to Engility Holdings, Inc. (“Engility”), a publicly traded company that provided mission support services to federal agencies.  In 2019, SAIC acquired Engility.  The United States contended that Engility breached the Contract when three employees of its subcontractor, Trace Systems, Inc. (“Trace”), failed to regularly report to work while abroad in Bahrain from September 2019 to November 2019.  The United States contended Engility thereafter billed the Government (and the Government paid) for the Trace employees’ work.

“When companies do not provide the items or services they were contracted for, it can pose an unacceptable threat to warfighter readiness and to our national security,” said Special Agent in Charge Greg Gross, NCIS Economic Crimes Field Office. “NCIS and our partners remain diligent in our efforts to ensure allegations of procurement fraud that could lead to mission failure are thoroughly investigated.”

SAIC agreed to pay $450,000 to resolve the United States’ claims.

This civil settlement agreement is not an admission of any liability by SAIC, nor a concession by the United States that its claims were not well-founded. 

Assistant United States Attorney Mary Ann Couch represented the United States in this matter, with assistance from the Naval Criminal Investigative Service Economic Crimes Field Office and Defense Criminal Investigative Service.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.