CALIFORNIA
Ergonomic office furniture maker Workrite Ergonomics LLC, a Delaware company, and its parent, Knape & Vogt Manufacturing Co. agreed to pay $7.1 million to resolve allegations under the False Claims Act, according to officials.
The company allegedly overcharged the federal government for office furniture under General Services Administration (GSA) contracts, the Department of Justice announced Thursday.
The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Michael J. Franchek, of Park City, Utah, a former Workrite sales manager.
The Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. Franchek will receive approximately $1.27 million from the settlement proceeds.
“Companies that do business with the United States are expected to charge the government appropriately for their services,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division. “We will continue to protect the American taxpayers and hold accountable those who misuse federal funds.”
“Federal contractors must be honest and forthcoming,” said U.S. Attorney David L. Anderson of the Northern District of California. “Contractors that overcharge the American taxpayer will be held accountable.”
“American taxpayers deserve fair prices and accurate information from GSA contractors,” said GSA Inspector General Carol Fortine Ochoa. “I appreciate the hard work and dedication that led to this significant recovery.”
This settlement relates to a contract under which Workrite provided office furniture to government entities from 2009 to 2017 through GSA’s Multiple Award Schedule (MAS) program.
The MAS program provides the government with a streamlined process to procure commonly used commercial goods and services, officials stated.
The settlement resolves allegations that Workrite did not fulfill its contractual obligations to provide GSA with accurate information about its commercial sales practices during contract negotiations, and did not subsequently extend lower prices to government customers as required by the GSA contract’s price reduction clause, according to authorities.