Companies accused of overcharging the Army under the Army Desktop and Mobile Computing 3 contract.
Dell Technologies Inc. and its subsidiary, Dell Federal Systems L.P., have agreed to pay $2,300,000 to settle allegations that they submitted and caused the submission of non-competitive bids to the Army, overcharging the Army under the Army Desktop and Mobile Computing 3 (ADMC-3) contract. Iron Bow Technologies LLC has agreed to pay $2,051,000 for its role in the scheme.
The settlements resolve allegations that from May 2020 to April 2024, Dell operated a deal registration program, giving advantageous pricing to Iron Bow to sell certain Dell computer hardware products to the Army in response to solicitations under the AMDC-3 contract. Dell submitted its own direct bids to the Army on the same solicitations, knowing that its prices would be higher than Iron Bow’s, creating a false appearance of competition.
The United States alleged that Dell’s practice of providing higher direct bids influenced the Army’s source selection process, enabling Iron Bow to overcharge the Army for certain Dell products. “The United States relies on competition to get the best value and price for the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Civil Division.
The Dell settlement also resolves a lawsuit filed against Dell under the whistleblower provisions of the False Claims Act, which permits private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and receive a share of any recovery. The settlement in this case provides for the whistleblower, Brent Lillard, an executive of another IT reseller, to receive a $345,000 share of the recovery from Dell.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Northern District of Alabama, with assistance from the Office of Inspector General, Army Criminal Investigation Division, National Aeronautics and Space Administration Office of Inspector General, and General Services Administration Office of Inspector General.
Dell Technologies Inc., located in Austin, Texas, and Iron Bow Technologies LLC, located in Herndon, Virginia, have agreed to pay $4,351,000 to resolve allegations that they violated the False Claims Act by submitting and causing the submission of non-competitive bids to the Army and thereby overcharging the Army under the Army Desktop and Mobile Computing 3 contract.
Defendant: Dell Technologies Inc. and Dell Federal Systems L.P. and Iron Bow Technologies LLC.
Criminal Charges: Violation of the False Claims Act.
City and State: Austin, Texas, and Herndon, Virginia.
Date: May 2020 to April 2024.
Sentence or Outcome: $2,300,000 from Dell and $2,051,000 from Iron Bow.
Dollar Amounts: $4,351,000.
Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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