David X. Sullivan, United States Attorney for the District of Connecticut, has announced that MERCER (US), LLC, a consulting firm based in Hartford, has reached a civil settlement agreement and paid over $450,000 to address allegations of overbilling the Defense Health Agency (DHA). The accusations involve billing for work by certain employees and subcontractors at rates exceeding those permitted by their educational backgrounds or experience levels.
The DHA is responsible for managing TRICARE’s health benefits program for service members and their families. In its efforts to develop and implement managed care support and pharmacy services contracts, the DHA sought external subject matter expertise. Specifically, it solicited offers for Health Plan Innovative Support (HPIS) services from vendors through the General Services Administration’s Professional Services Schedule.
In April 2020, DHA and Mercer established a Blanket Purchase Agreement (BPA) for HPIS services. Under this agreement, Mercer was tasked with providing qualified personnel with relevant expertise for designing TRICARE programs. The BPA specified labor categories with associated education and experience qualifications along with corresponding hourly billing rates.
The government asserts that between May 7, 2020, and August 2, 2023, Mercer billed DHA at labor rates not justified by the educational background or experience levels of 11 employees involved in the project. Upon discovering these discrepancies, Mercer disclosed them to the government. To resolve claims under the Contract Disputes Act as well as common law theories of breach of contract, payment by mistake, and unjust enrichment, Mercer agreed to pay $456,796.50.
The investigation into this matter was carried out by the Defense Criminal Investigative Service with assistance from the Defense Contract Audit Agency Operations Investigative Support Division. Assistant U.S. Attorney Sarah Gruber handled this case.
