$3.9M Penalty For 2 Arlington Contractors Due To Whistleblower Lawsuit

ARLINGTON, VA — Two Arlington companies agreed to pay $3.9 million on Tuesday to settle a dispute in which one of the companies was accused of making false statements concerning its women-owned small business status in order to obtain a set-aside contract for WOSBs.

The settlement originated from a lawsuit filed under the False Claims Act's whistleblower provision. This means that the whistleblower is entitled to a share of the $3.9 million settlement.

QuarterLine Consulting, LLC and its parent company Planned Systems International, Inc. agreed to pay the settlement after QuarterLine misrepresented its WOSB status on a Defense Health Agency task order to supply physicians to an Air Force military treatment center, according to court documents.

“This settlement demonstrates my office’s commitment to ensuring a fair and honest playing field for companies who are called on to support the Department of Defense, and in this case, provide medical care to those serving our country,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia.

Although QuarterLine had WOSB status in July 2017 when it was awarded the DHA indefinite delivery/indefinite quantity multiple-award contract, it was required to forfeit that status once it was purchased by PSI in December 2018. The company had 30 days to update its size certifications in GSA’s System for Award Management.

The federal government accused QuarterLine of misrepresenting itself as a WOSB when it submitted a proposal in January 2019 for an Air Force-issued task order request through the DHA, according to court documents. The company was also accused of submitting false statements about its size and status to the task order's contracting officer. Based on these false statements, QuarterLine was awarded the contract.

PSI and QuarterLine agreed to pay $3.9 million in order to resolve the government's claims against them.