A settlement has been reached to resolve False Claims Act allegations against Centerra Services International Inc.
The allegations arose from a lawsuit, claiming Wackenhut Services LLC, currently known as Centerra Services International Inc, violated the False Claims Act by double billing and inflating labor costs in connection with a contract for firefighting and fire protection services in Iraq.
On Monday, the Department of Justice announced that Wackenhut provided U.S. military bases with firefighting and fire protection services under a subcontract with Kellogg Brown & Root Inc. (KBR), the prime contractor for the Army’s contract for logistical support in the military theater, known as LOGCAP III. LOGCAP III is the third generation of contracts under the Army’s Logistical Civil Augmentation Program. The government alleged that from 2008 to 2010, Wackenhut inflated its labor costs by billing the salaries of certain managers as direct costs under the subcontract, when those salaries had already been charged as indirect costs. The government further alleged that Wackenhut artificially inflated its labor rate by counting its costs for holidays, vacation, sick leave, rest and recuperation and other variable labor costs twice in calculating the rate. Wackenhut billed KBR, which then passed on the costs to the government under LOGCAP III.
The whistleblowers' share of the settlement will be $1.332 million.
