CA forks out $45m to make claims it screwed over US govt go away CA Inc will cough up $45m to end allegations it overcharged American taxpayers while offering discounts to companies. Under the terms of US government contracts, suppliers have to give Uncle Sam the same discounts they give to corporate customers for volume deals. In 2014, officials claimed CA didn't do this on contracts …
Congratulations are in order however, for as long as you can enjoy your life.
Is it strange that some for-profit company (CA) can continue to make a profit when discounting its wares by 95%? Admittedly they can only do that since the products are worth tuppence on the pound and the americans don't seem to care. Or they are in the pockets of and don't know how to be objective.
Having worked on the periphery of the US Gov behemoth GSA there are lots of cases where these types of awards could happen. Not just software monsters (Oracle, MS, SAP/Peoplesoft, CSC, Big10) but many iron-mongers.
Isn't it the responsibility of the US Government to be better at negotiating prices and contracts so as to get the best deal for the people who actually pay for it and pay their salaries? What magical abilities do those corporate clients have that enable them to get massive discounts?
> What magical abilities do those corporate clients have that enable them to get massive discounts?
Corporate clients recognise CA software to be crap. But when offered a 95% discount, execs can use that as evidence of their importance and negotiating skills, so the software becomes irrelevant. Apart from to the poor sods who have to use it.
I have seen some amazing discounts happen when you get the sales person at the end of the quarter or better yet, the end of their fiscal year. Salespeople, for some odd reason, seem to focus on and get compensated for bringing in revenue and not profitability. Now that defies logic.
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