Hewlett Packard has agreed to fork over $16.25 million to settle charges that the computer maker "lavished" gifts on two Texas school districts in order to win government contracts to provide computer equipment. Acting on tips from whistleblowers within the Dallas and Houston school districts, the Department of Justice and Federal Communications Commission investigated the allegations.

"Meals and entertainment—including trips on a yacht and tickets to the 2004 Super Bowl—were provided by the contractors to get inside information and win contracts that were supposed to be awarded through a competitive bidding process," the Federal Communications Commission disclosed late on Wednesday.

The FCC's Schools and Libraries or "E-Rate" fund is the program that was allegedly compromised. E-Rate provides money to libraries and schools for computer and networking gear. Contractors like HP are supposed to bid for school district cash under an open process.

The suits were filed under the provisions of the False Claims Act, which allows the whistleblowers to sue on behalf of the United States and receive some of the recovery money. But, as is often the case in these settlements, while the government charged that HP was "conspiring to rig the competitive bidding of E-Rate contracts," the company is admitting no crime.

"This Agreement is neither an admission of liability by HP, which denies the claims described above, nor a concession by the United States that its claims are not well-founded," the settlement explains.

Bottom line: HP will pay $7,402,441 for the Dallas contract and $8,847,559 for its contracting bids in Houston.

We did nothing wrong, and we'll never do it again

HP has also agreed to a compliance program which involves training its employees in how to comply with E-Rate contracting rules (presumably someone will tell them not to hand out Super Bowl and yacht trip tickets to school officials).

The company's employees will have to certify that they "are not aware of and have no reason to suspect that anyone has provided or has promised to provide a gift, payment or entertainment, or anything else of value, on HP's behalf in connection with any bid or agreement that might violate the E-Rate Program Rules or other applicable law, or any HP policy."

Further actions are being taken against former HP business partners Micro Systems Engineering (MSE) and Analytical Computer Services (ACS), and a number of individuals.

Hewlett Packard sent us this press release on the settlement:

"HP requires that all employees and partners adhere to lawful and ethical business practices. The activities at the center of this investigation occurred more than five years ago, the partner relationships have been terminated and the employees involved are no longer with the company. HP fully cooperated with the authorities and the matter is now resolved."