Oracle sued by U.S. government for alleged overcharging

From InfoWorld: Oracle is being sued by the U.S. government for allegedly overcharging it by millions of dollars, according to documents on file in U.S. District Court for the Eastern District of Virginia.

The government's action, filed in April, joined an earlier complaint filed by an Oracle employee, Paul Frascella, in May 2007. Frascella's complaint was unsealed as part of the government's move.

The U.S. General Services Administration (GSA) often works out "multiple award schedule" contracts with vendors such as Oracle, the suit states. Once in place, the MAS contract lets vendors list their products and prices in a catalog from which government agencies can make purchases without dealing with the usual red tape caused by procurement regulations.

But the contracts, known as "GSA Schedules," are supposed to provide discounts that are as good as or better than that given to the vendor's most favored customers, the complaint states.

"The whole idea of GSA schedule discounts is that the government, in the aggregate, is likely to be one of the largest purchasers of a company's products, and is entitled to take advantage of the discounts that its large buying power should command," it adds.
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