John Paczkowski

Recent Posts by John Paczkowski

DOJ Sues Oracle for Alleged Overcharging

The U.S. Justice Department has joined a whistle-blower lawsuit against Oracle accusing the company of defrauding the United States government. Filed back in May 2007 under the False Claims Act, the suit alleges Oracle overcharged the federal government by tens of millions of dollars by failing to offer it the same deep discounts the company offered commercial customers.

That’s a real problem, because Oracle was obligated to do just that under the terms of the General Services Administration contract by which it was bound.

“The whole idea of GSA schedule discounts is that the government, in the aggregate, is likely to be one of the largest purchasers of a company’s products, and is entitled to take advantage of the discounts that its large buying power should command,” the complaint claims.

That is tough to do if the discounts given to most favored customers are never disclosed. The GSA is supposed to be a guarantor of best price, an arrangement that allows the government to purchase products and services without having to negotiate a new contract every time. Evidently, in this particular case, it wasn’t.

Result: Taxpayers “overpaid for each Oracle software product by the amount of discounts and reductions from other commercial pricing practices that should have applied to each such purchase.”

Oracle (ORCL) has not yet responded to a request for comment. If it does, I’ll update here.


Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

Latest Video

View all videos »

Search »

The problem with the Billionaire Savior phase of the newspaper collapse has always been that billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo.

— Ryan Chittum, writing in the Columbia Journalism Review about the promise of Pierre Omidyar’s new media venture with Glenn Greenwald