Contractor Pays Over $3 Million to Resolve Contract Billing Issues

Our investigation uncovered billing irregularities related to contracts on New York’s Gateway Program rail infrastructure projects in the Northeast Corridor. Amtrak recovered approximately $3 million from a contractor who charged overhead rates that exceeded maximum pay rates as proscribed by the Gateway project contracts, including approximately $1.5 million pursuant to a civil settlement agreement filed in the U.S. District Court for the Eastern District of Pennsylvania and an additional approximately $1.5 million directly from the contractor. The Gateway contracts required that the contractor bill actual overhead rates up to a not-to-exceed maximum allowed rate. From 2013 through 2020, however, the contractor billed overhead rates that exceeded the allowed rate.