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Contract Non-Compliance

This archive displays posts tagged as relevant to fraud arising from or resulting in non-compliance with government contracts. You may also be interested in the following pages:

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November 20, 2020

Information technology contractor Cognosante, LLC will pay $19 million to resolve allegations that it violated the False Claims Act by overcharging the government under two GSA Multiple Award Schedule contracts.  The settlement came after Cognosante disclosed to the U.S. that it provided false information concerning its commercial discounting practices during contract negotiations and, during contract performance, charged the government for labor that failed to meet the qualifications set forth in the contracts.  DOJ; USAO DC

Wireless Carriers – Government Contracting Fraud ($138.7 million)

Constantine Cannon represented whistleblower OnTheGo Wireless, LLC, in state False Claims Act litigation against the four largest U.S. wireless carriers, AT&T Mobility, Verizon Wireless, Sprint, and T-Mobile, that resulted in the recovery of $138.7 million for the states of California, Nevada, and other jurisdictions, including political subdivisions in those states.  The whistleblower, an industry expert but not an insider at any of the carriers, alleged that the carriers knowingly failed to comply with contractual promises to deliver service “at the lowest cost available,” and provide rate plan “optimization” reports each quarter.  The contracts in questions were cooperative purchasing contracts that allowed different government entities to purchase under the terms and conditions of a master contract negotiated by a lead government agency.  For the carriers, becoming providers under the cooperative purchasing agreements gave them access to a multi-billion dollar market and, eager to have that access, the carriers agreed to provide rate plan optimization, but then, according to the whistleblower, failed to provide it.  The contracts were long-standing and the terms highly specialized.  And, many government agencies agreed to purchase under the contracts based solely on the fact they were put together by the Western States Contracting Alliance (“WSCA”).  This created an opportunity, OnTheGo alleged, that the carriers knowingly exploited to breach their promise to deliver low cost service and rate plan optimization, resulting in hundreds of millions of overcharges to government entities.  Over 30 California political subdivisions intervened in the California action and were also represented by Constantine Cannon; the State of Nevada intervened in the Nevada action. Plaintiffs ultimately recovered $138.7 million, and the whistleblower received a relator share of nearly 40%.  See Press Release and Whistleblower Insider for more.

Wireless Carriers Pay $138.7 Million to Settle Claims of Overcharging Hundreds of State and Local Entities Under Cooperative Purchasing Contracts

Posted  09/24/20
cell tower
Constantine Cannon represented whistleblower OnTheGo Wireless, LLC, as well as 30 California political subdivisions in litigation that resulted in recoveries under the state False Claims Acts of California and Nevada from the nation’s four largest wireless carriers: Verizon Wireless, AT&T Mobility, Sprint, and T-Mobile.  With California court approval of the AT&T and Verizon settlements on September 24, 2020,...

September 22, 2020

Contractors Bechtel National Inc., Bechtel Corporation, AECOM Energy & Construction, Inc., and Waste Treatment Completion Company, LLC will pay $57.75 million to resolve claims that they violated the False Claims Act by overbilling the Department of Energy for work on the Hanford Waste Treatment Plant.  The investigation was initiated by four whistleblowers who reported overcharging by defendants on craft labor performed by electricians, millwrights, pipefitters, and other skilled trades workers, including billing for unallowable and unreasonable idle time caused by management failures in scheduling work.  The whistleblowers will receive $13.75 million from the settlement.  USAO ED WA

September 17, 2020

LexisNexis Coplogic Solutions Inc. agreed to pay $10 million to Florida, which intervened in an action brought by whistleblower Christopher Hood under the Florida False Claims Act alleging that the company was underpaying the state.  LexisNexis contracted with the state to provide motor vehicle crash reports to the public for a small fee; a portion of the fee collected by LexisNexis, $10 per report, was to be paid by the company to the state Department of Highway Safety and Motor Vehicles.  However, the whistleblower and state alleged that LexisNexis systematically understated the number of reports it sold, thereby underpaying the state.  The relator, a former employee of LexisNexis, will receive a whistleblower award of $1.8 millionFlaEarlier settlements

September 10, 2020

Asphalt contractor Dave O’Mara Contractor, Inc. will pay $4.25 million to resolve claims that in performing and billing for repaving work that was funded in part by the Federal Highway Administration, they falsely represented that they were including steel slag in the asphalt mixture when they were not in fact doing so, increasing the chance that the roads would prematurely deteriorate. DOJ; USAO SD IN

For Garlic Powder They Got Maltodextrin

Posted  08/28/20
By Jessica T. Moore
The centuries-old yet enduring fraud of cheap-substitutions for quality foodstuffs reared its head during the U.S. Civil War when the government bought supplies from contractors: “For sugar, it often got sand; for coffee, rye; for leather, something no better than brown paper; for sound horses and mules, spavined beasts and dying donkeys; and for serviceable muskets and pistols, the experimental failures of sanguine...

Catch of the Week: Tacoma foundry pays 10.8M settlement over deficient steel parts destined for U.S. Navy submarines, falsified tests

Posted  06/18/20
US-Navy-ships-in-the-middle-of-the-ocean
The latest in our Catch of the Week series features Bradken Inc.’s $10.8 million payment to resolve allegations that its Tacoma foundry violated the False Claims Act (“FCA”) when it produced and sold substandard steel parts for U.S. Navy submarines and falsified test results to hide the failures. Bradken and its former lab director Elaine Thomas also face criminal charges. The company accepted responsibility and...

June 16, 2020

The U.S. Navy’s leading supplier of high-yield steel for submarines, Bradken Inc., has agreed to pay $10.8 million and comply with a three-year deferred prosecution agreement in order to settle allegations it violated the False Claims Act through its Tacoma foundry producing and selling steel that failed to meet certain strength standards required by the Navy.  In 2017, the defense contractor discovered and self-disclosed that test results for a substantial portion of its steel productions, spanning thirty years, had been improperly altered by then director of metallurgy, Elaine Thomas, causing shipbuilders to submit false claims to the Navy.  DOJ; USAO WDWA
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