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Defense Contractor to Pay $1M After Overbilling Claims

The Maryland company denies submitting false claims but wanted to avoid litigation.

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BALTIMORE (AP) — A Maryland defense contractor has agreed to pay nearly $1 million in a settlement over claims that it overbilled the National Security Agency for contract work, federal authorities said Monday.

The settlement agreement resolves civil claims the federal government had against iNovex Information Systems Inc. under the False Claims Act, U.S. Attorney Robert Hur’s office said in a news release.

In 2012, the NSA awarded iNovex a contract for system engineering work on computer systems. The government claimed the company knowingly billed the NSA for work by employees who did not timely obtain a certification required by the contract.

The Annapolis-based company denies that it submitted any false claims but avoided litigation by agreeing to pay the government $962,747 to resolve the government’s allegations.

“Defense contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” Hur said in a statement.

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