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.
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95-047