Ohio-based RPM International and its subsidiary Tremco Inc., agreed to pay $60.9 million to settle allegations that Tremco inflated prices for roofing supplies and services in connection with two multiple award schedule contracts with the General Service Administration, the Justice Department says in an Aug. 28, 2013 statement.
Tremco – who manufactures construction products – failed to provide the government with price discounts the company provided to non-government customers, the statement says and allegedly marketed expensive materials to the government without disclosing the availability of the same materials at lower cost.
Under a GSA schedule contract, contractors must agree to an ongoing disclosure of commercial pricing policies and practices. Under a provision of the schedule contract known as the price reduction clause, contractors must match in their government pricing the discounts they give to private sector customers.
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