by Kanishk Singh

WASHINGTON (Reuters) – U.S.-based consulting firm Booz Allen (NYSE:) Hamilton Holding agreed to pay the United States $377.4 million to resolve allegations that it violated federal law by improperly billing commercial and international costs for its government contracts, the Justice Department said.

The Justice Department said Friday that under government contracting rules, there must be a nexus between the cost incurred on a government contract and the purpose of the contract.

US Attorney for the District of Columbia Matthew Graves described the settlement as “one of the largest procurement fraud settlements in history”.

The government alleged that from 2011 through 2021, Booz Allen improperly allocated indirect costs associated with its commercial and international business to its government contracts and subcontracts, which either had no relationship to those contracts and subcontracts or allocated disproportionate amounts to those contracts and subcontracts.

The company issued a separate statement on Friday on the settlement, saying it entered into the settlement to avoid protracted litigation and that it was not an admission of liability.