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.
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