The DOJ announced that a Maryland-based IT services contractor, Hill ASC, Inc. d/b/a Hill Associates (“Hill ASC”) will pay at least $14.75 million to resolve allegations of violating the False Claims Act.
According to the DOJ, between 2018 and 2023, Hill ASC provided IT and cybersecurity services to federal agencies under the General Services Administration’s (GSA) Multiple Award Schedule (MAS) program, which is designed to streamline government procurement by allowing agencies to purchase pre-approved commercial goods and services. But Hill ASC allegedly submitted claims for payment that misrepresented the qualifications of its personnel. The DOJ specifically alleged that Hill ASC billed for individuals who lacked the required education and experience for the roles they were assigned. Hill ASC also allegedly provided cybersecurity services that had not passed the necessary technical evaluations, charged fees that were not authorized under its contracts, and failed to apply mandatory prompt-payment discounts.
In response to the DOJ’s allegations, Hill ASC has agreed to pay $14.75 million, with $8 million due within 14 days of the agreement. Hill ASC will pay the remaining $6.75 million in five annual installments, and if the company’s annual gross revenue exceeds $18.8 million between 2026 and 2029, it will also pay 2.5 percent of that revenue.
While this agreement in no way means Hill ASC has actually violated the FCA, this enforcement action reflects the government’s increasing scrutiny of technology contractors and its willingness to invoke the False Claims Act to hold them accountable. The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to False Claims Act investigations and litigation. If you need assistance with such a matter, please contact us today.