UPS agrees to pay US government $8.4 million

UPS agrees to pay US government $8.4 million

UPS has agreed to pay the United States $8.4 million to resolve allegations that it overcharged federal agencies for package delivery services 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 settlement resolves allegations that from 2007 to 2014, UPS failed to follow the Price Reductions Clause of the GSA contract, which required UPS to provide GSA with certain lower prices offered to another customer, resulting in the government paying more than it should have for package deliveries.  Under the GSA contract, which is known as a Multiple Award Schedule Contract, UPS provided ground delivery service and air delivery service.  The settlement covers 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.

This matter was jointly investigated by the GSA, Office of the Inspector General, and the Department of Justice’s Civil Division.  The claims settled in this case are allegations only, and there has been no determination of liability.

Relevant Directory Listings

Listing image

Ecom Global Systems

Ecom Global Systems (EGS) are a technology company focused on global ecommerce distribution logistics born out of the dotcom era. EGS are proud to include their eco-friendly returns management webportal ReverseGear, combined with their mobile apps which allow both clients and customers anywhere anytime access. […]

Find out more

Other Directory Listings

News Archive


MER Magazine

The Mail & Express Review (MER) Magazine is our quarterly print publication. Packed with original content and thought-provoking features, MER is a must-read for those who want the inside track on the industry.


P&P Poll


What’s been the most interesting trend of 2019?

Thank you for voting
You have already voted on this poll!
Please select an option!

Pin It on Pinterest

Share This