UPS (United Parcel Service) will pay a sum of $8.4mn to the US for resolving allegations of overcharging the US federal agencies for package delivery and supply services, said the Justice Department on Friday.
The settlement will resolve the allegations which say that between 2007 and 2014, UPS didn’t follow a GSA (General Services Administration) agreement which required it to offer fed agencies with some agreed discounts. This resulted in the government ending up paying more money than it actually should have for UPS’s package delivery services, said the government.
As per the Justice Department, determination of the liability which covers up the UPS delivery service in the settlement hasn’t been done yet.
It is expected that the contractors should comply with pricing needs of the GSA agreements as well as other forms of federal agreements, said Jody Hunt, Assistant Attorney Gen., Civil Division, Justice Department.
This settlement shows that the US government will be holding the contractors which overcharge agencies by not following the pricing needs of the fed agreements, Hunt added.
In a statement, UPS said that these allegations come from faith differences with regards to agreement perception and had been resolved like a contractual affair.
The firm further said that it maintains a good relationship with the government and supports the significant work of the fed agencies under several contractual vehicles.