Federal agents, including the FBI and Defense Criminal Investigative Service (DCIS), raided the headquarters of Carahsoft Technology Corp. in Reston, Virginia, on September 24.

This operation was described as “court-authorized law enforcement activity,” although specific details were not disclosed.

Carahsoft, a major IT services provider for U.S. government agencies, reported approximately $13 billion in revenue in 2022 and holds contracts worth $2.6 billion due to expire in the next two years.

The investigation is part of a broader Department of Justice inquiry into potential price-fixing in sales to military and government entities, particularly regarding past business dealings with SAP.

Carahsoft has stated it is fully cooperating with the investigation and continues to operate normally, including hosting an upcoming event in San Francisco.

This is not the first instance of scrutiny for Carahsoft; in 2015, it settled allegations of False Claims Act violations for $75.5 million, Newsweek has reported.

SAP has also faced legal challenges, agreeing to pay over $220 million in January 2024 to resolve violations of the Foreign Corrupt Practices Act.

Written by B.C. Begley