Company that failed before gets half-billion-dollar contract from DISA

The Defense Information Systems Agency is defending its decision to award a $578 million contract to Red River Computer to provide IT equipment and services strikingly similar to some of those Red River was last year fined more than $2 million for failing to provide to government agencies, reports FCW, a sister publication of Defense Systems.

According to an FBI release, the Claremont, N.H.-based reseller of IT products and services was forced to pay $2.3 million amid allegations of violating the False Claims Act in doing business with a number of federal agencies.

Red River was accused of failing to provide IT systems and services on a number of different contracts. One item on the list includes a 2005 contract with the Army that called for Red River to provide Cisco SMARTNet; the company reportedly did not complete registration for services with Cisco and in turn received a partial refund, which it did not reimburse to the Army.

A DISA spokesperson said DOD is confident in their processes for adequately vetting contractors and awarding contracts.


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