Oracle Accused of Overcharging by U.S. Government

Paul Lilly

The U.S. government is taking Oracle to court for alleging overcharging by several million dollars, and perhaps as much as $10 million, according to documents filed with the U.S. District Court for the Eastern District of Virginia.

At issue are what are called "GSA schedules," which are essentially contracts designed to provide discounts that are as good or even better than those given to the vendor's preferred customers.

"The whole idea of GSA schedule discounts is that the government, in the aggregate, is likely to be one of the largest purchasers of a company's products, and is entitled to take advantage of the discounts that its large buying power should command," the complaint states.

Oracle is accused of working on the sly to find ways around the GSA restrictions so that commercial customers get even deeper discounts. According to the complaint, it's the taxpayers who ultimately pay the price for Oracle's alleged misdeeds.

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