VIRGINIA BEACH, Va. — A Virginia defense contractor and its subsidiaries have agreed to pay the United States $16 million to settle allegations they fraudulently obtained contracts.

The Department of Justice announced the settlement with Virginia Beach-based ADS Inc. on Thursday.

The department says in a statement the settlement resolves bid rigging allegations and allegations that ADS fraudulently obtained small business contracts by having businesses it controlled misrepresent themselves. The statement says some businesses falsely claimed to be owned by disabled veterans while others claimed to be in a category for socially or economically disadvantaged businesses. The government says ADS and the companies it controlled concealed their affiliation.

The company said in a statement that it believes it has always complied with required standards but concluded settling was in the best interests of the company and its customers.