Educational Testing Services, the Princeton-based leader in standardized testing has agreed to pay $1.4 million to settle claims that the firm improperly billed U.S. Department of Education for federal contracts it holds with the agency.
The company provides research and assessment services to the DOE and is reimbursed for its expenses, including medical benefits costs. In the early 1990s, ETS established a retiree medical benefits fund and was allowed to bill the DOE for retiree medical benefits as part of its contract.
ETS stopped funding the retiree trust in 1999, but allegedly continued to bill the DOE for retiree benefits.
The company disclosed its overbilling in 2007 and reimbursed the government some $3.2 million. The $1.4 million settlement is in addition to that reimbursement.
“It is our job to protect taxpayers from contractors who charge more than they should. Companies who cooperate with the government make it easier for everyone involved to ensure the American people get a fair deal,” said U.S. Attorney Paul Fishman.
Founded in 1947, ETS develops, administers and scores more than 50 million assessment tests worldwide, according to the company’s website.