SAIC settles with Defense

Science Applications International Corp. will pay $484,500, despite not admitting any wrongdoing, to settle a claim that the company misled the Defense Department in regards to a computer system.

According to the government's allegations, SAIC officials repeatedly misrepresented the progress the company was making on the Defense Occupational and Environmental Health Readiness System, in weekly and monthly reports.

SAIC denied the allegations.

"This was a civil settlement to resolve allegations," said SAIC officials in a statement. "SAIC cooperated fully with the [Department of Justice] during the course of the investigation and resolution of this matter."

According to defense officials, SAIC reported that it was 96 percent done with the initial phase of DOEHRS, an industrial hygiene component, even though a later audit revealed it had only been halfway done.

DOD officials said they relied on SAIC's status reports and, as a result, overpaid for the company's services.

DOD conducted the probe, along with the Army Criminal Investigative Division, the Defense Criminal Investigative Services, and the U.S. Attorney's office in the District of Maryland.