Last week, the Dept. of Justice announced that it joined  in whistleblower David Magee’s allegations that SAIC and related entities and individuals conspired with government employees to submit false claims under a $3.2 billion contract to provide support services to the Naval Oceanographic Major Shared Resource Center at the Stennis Space Center in Hancock County, Mississippi:

The suit alleges that [Stephen] Adamec and [Robert] Knesel, then government employees, conspired with [Dale] Galloway, SAIC, and AES to ensure that SAIC and its partners were awarded the contract by (a) sharing non-public, advance procurement information with the SAIC team that was not provided to other potential bidders; (b) sharing information about the solicitation with the SAIC team before providing that information to other bidders; and (c) choosing a type of contract and putting language in the solicitation in order to bias the selection process to favor the SAIC team.

FRAUDBLAWG UPDATE: A jury awarded SAIC to pay $6.5 million, but on December 3, 2010, the D.C. appellate court ordered a new trial based upon an erroneous jury instruction.

To report Government fraud and abuse, contact Frohsin & Barger.