URS unit pays $1.7 mln to settle whistleblower suit

*EG&G pays $1.8 mln to settle whistleblower lawsuit

*Suit accused EG&G of overbilling U.S. Air Force

LOS ANGELES, May 26 (Reuters) - EG&G Technical Services Inc,
a subsidiary of URS Corp (URS.N), has paid about $1.8 million to
settle a lawsuit accusing it of overbilling the U.S. Air Force
for aircraft parts and services, U.S. prosecutors said on
Tuesday.

EG&G, a Maryland-based national defense contractor, paid the
settlement on May 12 and the case was dismissed a week later.
The company did not admit wrongdoing in settling the case,
prosecutors said.

James Steffes, an EG&G employee responsible for ordering and
maintaining aircraft parts, accused the company in the 2007 suit
of conducting a seven-year-long scheme on behalf of itself and
aircraft parts broker Danco Aerospace Consulting Inc,
prosecutors said.

Between 1997 and 2004, EG&G paid Danco for more than
$776,000 in parts that were already in inventory or were never
delivered, then submitted fraudulent bills totaling more than
$860,500 to the Air Force under a contract that included a fixed
profit, prosecutors said.

Steffes will receive $317,729 for filing the qui tam, or
whistleblower, action, the government said.
(Reporting by Gina Keating)