FOR IMMEDIATE RELEASE CIV WEDNESDAY, FEBRUARY 14, 1996 (202) 616-2765 TDD (202) 514-1888 CONSULTING FIRM WILL PAY U.S. $305,000 TO SETTLE CONTRACT DISPUTE WASHINGTON, D.C. -- A Maryland consulting company will pay the United States $305,000 to settle allegations it overcharged four federal agencies for computer services it used in designing and drafting plans for several construction projects, the Department of Justice announced today. Assistant Attorney General Frank Hunger of the Civil Division and U.S. Attorney Eric H. Holder of Washington, D.C., said the settlement resolves claims made against KCI Holdings Inc. of Hunt Valley, Maryland, and its affiliates and joint ventures by a former employee, William L. Wood. The case was brought under the qui tam provisions of the False Claims Act in U.S. District Court in Washington in 1994. The settlement resolves allegations that KCI over billed computer aided design and drafting charges on KCI's contracts with the Department of Defense, the Department of Transportation, the Department of Agriculture and the General Services Administration and federally-funded state contracts. The projects involved highway construction, office building renovation and transportation operations. KCI provides planning, engineering and surveying services for construction projects. KCI worked on the Barney Circle Project in Washington, D.C., and on projects at the Aberdeen Proving Grounds, Aberdeen, Md.; the Maryland Procurement Office, Fort Meade, Md.; the Maryland Agricultural Center, Beltsville, Md.; the Social Security Administration Center, Baltimore; and projects in Quantico, Va. It also worked on federally-funded state highway projects in Pennsylvania, Maryland and Delaware. Under the agreement, Wood will receive 15 percent of the settlement amount, or $45,750, for bringing the matter to the attention of the government. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement. The case was jointly investigated by the Department of Defense and Department of Transportation's Office of Inspector General. The Civil Division and the office of the U.S. Attorney negotiated the settlement. ##### 95-047