CSRA INC. (NYSE:CSRA) Files An 8-K Other EventsItem 8.01 Other Events.
CSRA Inc. (“CSRA” or the “Company”) announces that an appeal of a decision issued on September 15, 2017 by the State of Maryland ("State") Department of Health ("Department") will be brought before the Maryland State Board of Contract Appeals ("MSBCA"). The decision relates to claims by Computer Sciences Corporation (“CSC”), and a State counterclaim, arising out of CSC’s work from 2012 through 2014 on the Maryland Medicaid Enterprise Restructuring Project ("MERP"). to a 2015 agreement between CSRAand CSC, CSRA is litigating the MERP matters on behalf of CSC and will indemnify CSC for the costs of litigation and other costs or liabilities CSC may incur in the litigation.Recovery by CSC will be credited to CSRA.
CSC made three claims against the State, totaling approximately $83 million. CSC claims, among other things, that the State caused the breakdown of the MERP project and that the State's actions collectively constituted a cardinal change to the contract.In its counterclaim, the State initially sought $30 million plus unspecified additional damages.The Department denied CSC’s claims, and now purports to award $521 million to the State for its counterclaim–an award that CSRA views as absurd and highly speculative.
CSRA views the decision as nothing more than the Department’s unproven allegations and, in the appeal, the MSBCA will treat it as such. The MSBCA will consider CSC's claims and the State’s counterclaim anew; the Department will have the burden of proving the allegations in its decision before this independent tribunal, just as CSC must prove its case. We look forward to presenting the case to the MSBCA, and we intend to pursue these claims vigorously.
About CSRA INC. (NYSE:CSRA)
CSRA Inc. is a provider of information technology services to the United States federal government. The Company operates through two segments: Defense and Intelligence, and Civil. The Defense and Intelligence segment provides services to the Department of Defense (DoD), National Security Agency, branches of the Armed Forces, and other DoD and Intelligence agencies. The Civil segment provides services to various federal agencies within the Department of Homeland Security (the DHS), Department of Health and Human services, and other federal civil agencies, as well as various state and local government agencies. It supplies civil government agencies with mission information systems and associated technical support services. It provides its customers with technical services across service areas, including Digital Services, Enterprise Business Services, Digital Platforms, Cyber, Data Science, and Professional and Citizen Services. It has conducted operations in over 130 locations.