Three defense contractors–Science Applications International Corp. (SAIC), Lockheed Corp. and former federal employee, Dale Galloway and his corporation Applied Enterprise Solutions–along with the former Director and Deputy Director of the Navy Oceanograph Office (NAVO) supercomputer center have agreed to pay the U.S. government $22.6 million to settle False Claims Act allegations against them.  The Department of Justice claimed that they conspired to rig the bidding process for a contract to develop and run the new National Center for Critical Information Processing and Storage.  The Director and Deputy Director of the NAVO supercomputer center allegedly leaked confidential information to Galloway, SAIC, and Lockheed regarding the contract requirements before bidding information was available to the public.  This allowed SAIC, Lockheed, and Galloway’s shell corporation, Applied Enterprise Solutions, to secure the bid.

Lockheed has already paid $2 million.  SAIC will pay $20.4 million, Galloway and Applied Enterprise Solutions will pay $2.16 million, and Adamec and Knesel, the former Director and Deputy Director of the National Oceanograph Office supercomputer center, will pay $110,000.

David Magee, the whistleblower who brought the alleged bid-rigging to the government’s attention, will receive $560,000.