UPS pays US government $8.4 million fine

Amidst allegations it overcharged federal agencies for package deliveries, UPS is paying the United States $8.4 million in fines.

The package delivery services were offered under a General Services Administration (GSA) contract.

“Contractors are expected to carefully comply with the pricing requirements of GSA contracts and other federal contracts,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “This settlement demonstrates that the government will hold accountable contractors that overcharge federal agencies by failing to follow the pricing terms of federal contracts.”

The US government alleged that between 2007 and 14, UPS did not follow a Price Reductions clause of the GSA contract. This required the delivery firm to offer lower prices that were offered to another customer. As a result the government paid more than it should. The GSA contract is known as a Multiple Award Schedule Contract where UPS provided ground and air delivery services. This fine is for the ground delivery service.

“GSA’s Office of Inspector General will continue to work with the Department of Justice to put the taxpayer first,” said GSA Inspector General Carol Fortine.

The moneys paid are not an admission of guilt by UPS as no determination of liability has been made by any courts. The allegations were made by the GSA, Office of the Inspector General and the Department of Justice’s Civil Division. These bodies investigated the issue independently and rather than go to court over the matter UPS paid the fine.


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