July 26, 2000 Compaq Computer Corporation

Houston based Compaq Computer Corporation has agreed to pay $4.5 Million Dollars to settle allegations that Digital Equipment Corporation, which Compaq purchased in 1998, inflated its labor costs on a Defense Department contract to install computer network equipment.

Among other claims, the allegations were that Digital had charged the costs of some parts, as well as shipping and warehousing, into labor hours, improperly billed travel time as a direct cost to the government, and charged for some work at a higher rate that its contract with the government permitted.

See U.S. Dept of Justice Press Release 7/26/00

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