FOR IMMEDIATE RELEASE CIV TUESDAY, NOVEMBER 29, 1994 (202) 616-2765 TDD (202) 514-1888 GSA CONTRACTOR SETTLES CONTRACT DISPUTE FOR $550,000 WASHINGTON, D.C. -- The federal government is getting $550,000 from a manufacturer of flexible highway signs who it says failed to give Uncle Sam the big discounts it was giving state and local governments. In a settlement announced today, the Department of Justice said Carsonite International of Carson City, Nevada, gave some purchasers discounts ranging up to 59 percent, but gave the federal government a price break of only 30 percent. An audit by the General Services Administration's Office of Inspector General revealed that discount information submitted by the company when contracts were negotiated inaccurately reflected Carsonite's pricing practices. Between 1984 and 1987, GSA negotiated the purchase of $7 million worth of flexible highway, utility and recreational signs and posts from Carsonite which made them from a patented plastic composite that let the signs spring back in place even if they were run over by a vehicle. Assistant Attorney General Frank W. Hunger, in charge of the Civil Division, said the payment resolves allegations that the company submitted misleading pricing and discount information. Government regulations require contractors to disclose accurate, complete and current information about prices and discounts given to commercial customers and state and local governments to ensure that federal taxpayers are not overcharged. ##### 94-671