FOR IMMEDIATE RELEASE CIV MONDAY, OCTOBER 3, 1994 (202) 616-2765 TDD (202) 514-1888 TANDEM PAYS U.S. $1.9 MILLION TO SETTLE CIVIL DISPUTE WASHINGTON, D.C. -- A computer manufacturer will pay the United States $1.9 million to settle allegations it failed to tell the government about discounts it offered commercial customers and deprived the government of discounts to which it was entitled for the purchase of computer equipment and software, the Department of Justice announced today. Assistant Attorney General Frank W. Hunger, in charge of the Civil Division, said Tandem Computers Inc. of Cupertino, California, was awarded three one-year contracts by the General Services Administration from 1987 through 1990 to purchase automated data processing equipment and software for federal agencies. Tandem, in its negotiations, did not tell GSA that it granted commercial customers higher discounts than it offered GSA. The firm also said total annual federal purchases were between $2.5 million and $3.5 million when they actually averaged about $9.5 million, the Department said. As a result, the federal government paid more for Tandem's products since it received lower rates for discounts and volume sales. Under the GSA contract, Tandem was required to disclose the data to the government. The settlement resolves claims against Tandem under the False Claims Act. GSA's Office of Inspector General investigated the case. The Civil Division negotiated the settlement. ##### 94-570