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Sun Microsystems cancels federal contract after overcharging probe

Sun Microsystems, a major supplier of technology to the federal government, has canceled its contract with the General Services Administration. According to a September 15, 2007 article in the Washington Post, the cancellation follows months of questions from investigators and lawmakers regarding overcharging.

Auditors in the GSA’s inspector general’s office claimed that Sun abused the GSA schedule system, billing the government millions more than it had charged its commercial customers. GSA had pressed to renew the contract despite those claims.

In April the Dept. of Justice announced that it was joining a False Claims Act suit against Sun. That suit, which also named Hewlett-Packard and Accenture LLP, alleges kickbacks and conflicts of interest.

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