UPS to pay DOJ $8.4 million for overcharging federal agencies under GSA Contract

The Department of Justice announced today that United Parcel Service Inc. (UPS) has agreed to pay the United States $8.4 million to resolve allegations that it overcharged federal agencies for package delivery services under a General Services Administration (GSA) contract.

“Contractors are expected to carefully comply with the pricing requirements of GSA contracts and other federal contracts,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “This settlement demonstrates that the government will hold accountable contractors that overcharge federal agencies by failing to follow the pricing terms of federal contracts.”

The settlement announced today resolves allegations that from 2007 to 2014, UPS failed to follow the Price Reductions Clause of the GSA contract, which required UPS to provide GSA with certain lower prices offered to another customer, resulting in the government paying more than it should have for package deliveries. Under the GSA contract, which is known as a Multiple Award Schedule Contract, UPS provided ground delivery service and air delivery service. The settlement covers ground delivery service.

“GSA’s Office of Inspector General will continue to work with the Department of Justice to put the taxpayer first,” said GSA Inspector General Carol Fortine.

This matter was jointly investigated by the GSA, Office of the Inspector General, and the Department of Justice’s Civil Division. The claims settled in this case are allegations only, and there has been no determination of liability.