December 18, 2017
FAA Contractor and CEO Suspended
On December 18,2017, the Federal Aviation Administration (FAA) suspended and proposed to debar Calnet, Inc. (Calnet), a Reston, Virginia-based FAA contractor, and its chief executive officer, Kaleem Shah. The suspension was based on the contents of a settlement agreement between Calnet, Shah, and the United States to settle False Claims Act allegations.
On September 13, 2017, Calnet, Inc. and Shah, agreed to pay $300,000 to the U.S. Government. The payment settled allegations that Calnet and Shah submitted false information by misrepresenting its past experience in its 2009 proposal to provide FAA’s Aviation Safety Office with technology support services, including help desk and desk-side services, in North America and at several international sites. FAA subsequently awarded the contract to Calnet.
The settlement agreement represents neither an admission of liability by Calnet or Shah nor a concession by the United States that its claims were not well founded.
DOT-OIG conducted this investigation with the U.S. Attorney’s Office for the Eastern District of Virginia.
Note: Exclusion actions (suspensions and debarments) are frequently for a specific period of time and the System for Award Management (Sam.gov) should be consulted to find out whether a company is currently excluded.