UPS to pay $8.4 million to resolve U.S. overcharging probe

United Parcel Service Inc (UPS.N) has agreed to pay the United States $8.4 million to resolve allegations it overcharged federal agencies for package delivery services, the U.S. Justice Department said on Friday.

The settlement resolves allegations that from 2007 to 2014, UPS failed to follow a General Services Administration (GSA) contract requiring it to provide agencies with certain agreed discounts, resulting in the government paying more than it should have for package deliveries, the government said.

The Justice Department said there has been no determination of liability in the settlement that covers ground delivery service.

“Contractors are expected to carefully comply with the pricing requirements of GSA contracts and other federal contracts,” said Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable contractors that overcharge federal agencies by failing to follow the pricing terms of federal contracts.”

UPS said in a statement that the “allegations stem from good faith differences regarding contract interpretation and were resolved as a contractual matter.”

The company added that it “maintains a strong relationship with its government customers and supports the important work of federal agencies under many contractual vehicles, including the one at issue here.