Hewlett-Packard to pay $30 million for overbilling the Postal Service

Monday - 8/4/2014, 10:32am EDT

By Ellen Kortesoja
Federal News Radio

The Justice Department announced Friday that Hewlett-Packard Co. (HP) will pay $32.5 million due to allegations of overcharging the U.S. Postal Service.

The settlement follows a lawsuit filed under the False Claims Act.

HP manufactures IT products and services to USPS, and allegedly hiked up the price for the agency from 2001 to 2010.

In the contract between HP and USPS, DoJ is saying that HP did not comply with the terms of the agreement, which outline that HP will not offer prices that are greater than those offered to customers with comparable contracts.

DoJ also alleges that HP did not appropriately represent its intentions during negotiations — the part saying HP would "provide the required most favored customer pricing," the press release states.

Thomas Frost, the agent in charge of the Major Fraud Investigation Division (MFID) at the Postal Service, said MFID will work diligently to ensure that no contractor takes advantage of USPS.

Both USPS, USPS-OIG and the Justice Department's Civil Division are investigating the allegations. To date, there has been to decision on liability.