Oracle is being sued by the U.S. government for allegedly overcharging by millions of dollars, according to documents filed in the U.S. District Court for the Eastern District of Virginia. The government's action, which dates back to April, joined an earlier complaint filed by a whistleblower who is a former Oracle employee, back in May 2007. The U.S. General Services Administration (GSA) determines the multiple award schedule (MAS) contracts with vendors such as Oracle, and once in place, the MAS contract lets vendors list their products and prices in a catalogue from which government agencies can make purchases without dealing with the usual red tape caused by procurement regulations.
But the contracts, known as GSA Schedules, are supposed to provide discounts that are as good as or better than that given to the vendor's most favored customers. However, the Oracle whistleblower alleges that Oracle was finding ways around the GSA restrictions in order to give commercial customers even deeper discounts. The Government believes that Oracle's actions have cost U.S. taxpayers "tens of millions of dollars".
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