Gallup Pays $10.5M Settlement for Overcharging Feds

Monday, 15 Jul 2013 01:52 PM

By Melanie Batley

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Gallup has agreed to a $10.5 million settlement with the Department of Justice after two government agencies said the polling and market research firm significantly overcharged them.

According to The Hill, the State Department and the U.S. Mint alleged in a Justice Department complaint that Gallup overstated its estimated labor hours, resulting in "falsely inflated prices" for the work it did for the government.

The complaint also said the firm engaged in "improper employment negotiations" with an employee from the Federal Emergency Management Agency to get an overpriced contract.

"Contractors must be honest and straightforward in their contract proposals to the government," the DOJ said in a statement, according to The Hill.

"We will pursue contractors that seek to take advantage of the government by providing estimates that do not reflect their best judgment, or by offering employment to federal officials who have a conflict of interest. This type of misconduct results in inflated contract prices and undermines the integrity of the government's contracting process," the statement said.

Gallup has not admitted to any wrongdoing, and said in a statement, "By ending this civil action with no admission of wrongdoing, Gallup can avoid further distraction and focus on serving its customers. The company continues its dedication to the highest standard of ethics in business."


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