Part of the Bay Area News Group

HP pays $55 mil but gets up to $800 mil from feds

By Josh Richman
Monday, August 30th, 2010 at 1:42 pm in Uncategorized.

The U.S. Department of Justice today announced that Palo Alto-based Hewlett-Packard Co. has agreed to pay the United States $55 million to settle claims that the company defrauded the General Services Administration and other federal agencies. The settlement resolves allegations under the False Claims Act that HP knowingly paid kickbacks, or “influencer fees,” to systems integrator companies in return for recommendations that federal agencies purchase HP’s products. The settlement also resolves claims that HP’s 2002 contract with the GSA was defectively priced because HP provided incomplete information to GSA contracting officers during contract negotiations.

In other news, HP today announced it has been selected as a preferred technology provider by the U.S. Air Force (USAF) for a new five-year enterprise computing Blanket Purchase Agreement, cumulatively worth up to $800 million.

Under the agreement’s terms, HP products may be selected through the quantum enterprise buy procurement system; in support of Air Force QEB programs over the last five years, HP has delivered more than $450 million worth of computing products including more than 720,000 desktop PCs and 40,000 notebook PCs.

“The agency BPA represents the exceptional relationship with the U.S. Air Force and Department of Defense that HP has built over several decades,” Stephen DeWitt, senior vice president and general manager of HP’s Personal Systems Group, said in a news release. “We look forward to continuing to deliver the highest quality products and technology innovations for the Air Force’s worldwide enterprise computing needs.”

[You can leave a response, or trackback from your own site.]

  • Ralph Hoffmann

    Was anyone arrested?