ID=27586689UPS Inc. has agreed to pay the federal government $25 million to settle allegations that it concealed failures to meet next-day delivery guarantees, according to the Justice Department.

The payment resolves the allegations that from 2004 to 2014 UPS would knowingly record inaccurate delivery times to make it appear that Next Day Air overnight packages were delivered on time, according to the Justice Department.

UPS provides delivery services to hundreds of federal agencies through contracts with the general Services Administration and the Defense Department. The contract stipulated the delivery of packages by certain specified times the following day for Next Day Air overnight packages.

The government also alleged that UPS would apply exceptions to packages such as "security delay," "customer not in" or business closed" in order to conceal failures to deliver packages on time.

Such practices prevented federal customers from preventing refunds for the late delivery of packages, according to the Justice Department.

"Protecting the federal procurement process from false claims is central to the mission of the Department of Justice," said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department's Civil Division. "We will continue to ensure that when federal monies are used to purchase commercial services the government receives the prices and services to which it is entitled."

The false claims suit was brought by Robert K. Fulk, a former UPS employee, who will receive $3.75 million for filing suit against UPS on behalf of of the United States, according to the Justice Department.

"The United States should get what it pays for, nothing less," said Acting Inspector General Robert C. Erickson of the GSA.

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