The U.S. Department of Justice (DOJ) announced today that Hill ASC Inc., a Maryland-based IT services contractor doing business as Hill Associates, has agreed to pay $14.75 million to resolve allegations that it violated the False Claims Act in its dealings with the federal government.
According to the settlement agreement, Hill allegedly submitted false claims under a General Services Administration (GSA) contract by billing for unqualified personnel and services outside the contract’s approved scope. These actions impacted contracts with the U.S. Department of the Treasury and the DOJ, among others.
From 2018 to 2023, Hill provided IT and cybersecurity support under the GSA’s Multiple Award Schedule Program. The government alleged that Hill:
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Billed for IT staff who lacked the required education or experience;
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Charged unauthorized fees in task order invoices;
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Submitted invoices for unapproved cybersecurity services;
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Omitted a required 5% prompt payment discount on invoices to federal agencies.
“These contractors must bill the government fairly and transparently,” said Brett A. Shumate, Assistant Attorney General of the DOJ’s Civil Division. GSA Deputy Inspector General Robert C. Erickson added, “Federal agencies should receive exactly what they’ve paid for—nothing less.”
Hill has agreed to the settlement without admitting liability. The DOJ confirmed the settlement amount reflects Hill’s financial capacity.
The government’s case was handled by Christopher Terranova of the DOJ’s Civil Division. Hill was represented by Jonathan S. Aronie of Sheppard Mullin Richter & Hampton LLP.
