FEMA Accused of $417 Million Financial Systems Contract Breach

Digital Systems Group Inc. says FEMA should pay $417 million for breaching a financial management system contract by sharing the company’s intellectual property with third parties.

The Federal Emergency Management Agency’s alleged improper action spanning several years also resulted in the creation of unauthorized derivative works based on and containing DSG’s intellectual property, known as Web-Integrated Financial Management System (WebIFMIS), the company told the US Court of Federal Claims in a Feb. 7 complaint.

FEMA unlawfully used the system to develop a new financial system that would compete with DSG, and shared intellectual property with third parties in furtherance of ...