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SAIC Accused in Bid-Rigging

The Justice Department has accused SAIC of conspiring to rig bids for a $3.2 billion computer center at the Stennis Space Center in Mississippi.

The lawsuit charges SAIC received inside information about the contract from three U.S. Navy civilian executives. It says the federal employees tailored the RFP so SAIC would win the award. The suit seeks treble damages plus penalties under the False Claims Act.

An SAIC spokeswoman said the allegations are “without merit.”

The Justice Department joined a whistleblower lawsuit filed in Mississippi federal court by a former employee of the Naval Oceanographic Major Shared Resource Center at Stennis. Also named as defendants are Stephen Adamec, former director of the Major Shared Resource Center; Robert Knesel, former deputy director; and H. Dale Galloway, former director of the Space and Naval Warfare Systems Command’s IT center in New Orleans.

Court documents allege that Galloway, while still working for the Navy, formed “a shell company” in his wife’s name to team with SAIC on the computer center contract that was awarded by GSA in 2004. The Washington Post reported that Galloway resigned his Navy position in June.

“As this case illustrates, the Department of Justice will actively pursue legal action against both contractors and federal employees who seek to gain an unfair advantage in the procurement process,” assistant attorney general Tony West said in a statement.


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