Carahsoft FBI raid linked to alleged price-fixing scheme with SAP

Federal agents raided Carahsoft’s Reston, Virginia, headquarters this week amid an investigation into alleged price-fixing schemes involving the contractor and its partners, including SAP and Accenture. The FBI and Defense Criminal Investigative Service executed the raid after Carahsoft allegedly failed to comply with document requests related to its government contracts, raising suspicions of bid-rigging and fraud.

Court documents suggest Carahsoft and its partners conspired to manipulate bids, inflate prices, and overcharge federal agencies, including DOD. Investigators are examining over $2 billion in SAP technology purchased by the government since 2014, with DOJ alleging Carahsoft has repeatedly delayed or obstructed the investigation.

The raid underscores mounting scrutiny on Carahsoft, a major IT reseller with significant federal contracts, including GSA and NASA acquisition schedules. SAP and Accenture have confirmed their cooperation with the investigation (an Accenture spox told NextGov, “Accenture Federal Services is responding to an administrative subpoena and is cooperating with the DOJ”), which could have significant implications for federal procurement practices and sales through resellers.

The involved firms have faced previous legal challenges, including SAP’s $222 million settlement over bribery allegations and Carahsoft’s $75 million fine in 2015 for overcharging the government. SAP shares fell 3.3% to 200.1 euros Wednesday.