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Government Procurement Fraud

This archive displays posts tagged as relevant to fraud in government contracting and procurement. You may also be interested in the following pages:

Page 3 of 40

November 29, 2022

Government contractor PowerSecure, Inc. agreed to pay $8.4 million to resolve claims that it failed to completely and accurately report disclose cost or pricing data in connection with securing a sole source contract for the repair and restoration of Puerto Rico’s power grid following the damage caused by Hurricane Maria.  The government asserted that such cost and pricing data was required by the Truth in Negotiations Act, and that PowerSecure’s failure to provide it violated the False Claims Act.  DOJ

Tagged in: FCA Federal, Government Procurement Fraud, Pricing Fraud,

October 26, 2022

Honeywell International Inc. has agreed to pay $3.35 million to settle a False Claims Act case involving the sale of defective bullet proof vests to the government.  Honeywell allegedly sold its patented Z Shield material to a bullet proof vest manufacturer, even though it knew the material was not cut out for ballistic use.  The vests were ultimately sold to multiple agencies through a GSA contract, as well as various state, local, and tribal law enforcement authorities through a DOJ program.  Their failures launched a 10-year investigation and litigation into the issue that ended with this settlement.  In total, the government recovered over $133 million from 17 entities and individuals.  DOJ

Tagged in: FCA Federal, Government Procurement Fraud,

August 30, 2022

Medical device manufacturer Philips North America has agreed to pay $4.2 million to resolve allegations that it violated the False Claims Act by falsely certifying that mobile patient monitoring devices it sold to military purchasers met standards for airworthiness and passed safe-to-fly testing required to ensure that medical devices can safely be used in aircraft.  As part of the settlement, Philips admitted that after receiving initial approval in 2008, it made modifications to the device but did not inform government purchasers of those modifications, so that a determination could be made if re-testing was required.  USAO MA

Tagged in: Certifications, FCA Federal, Government Procurement Fraud, Healthcare Fraud, Medical Devices and DME,

July 1, 2022

Air France and KLM Airlines have agreed to pay $3.9 million to resolve their liability under the False Claims Act.  Under contracts with USPS, the airlines were required to submit scans showing when mail was transferred from their possession, but they submitted scans that falsely reported delivery times.  DOJ

Tagged in: Contract Non-Compliance, FCA Federal, Government Procurement Fraud,

June 30, 2022

Delta Airlines has agreed to pay $10.5 million to resolve allegations that it falsely reported mail delivery times under a contract with USPS in order to avoid penalties for mail delivered late or to the wrong location.  The settlement resolves Delta’s liability under the False Claims Act.  DOJ

Tagged in: Contract Non-Compliance, FCA Federal, Government Procurement Fraud,

June 14, 2022

Defense contractor Kellogg Brown & Root Services, Inc. and related entities will pay $13.7 million to resolve allegations that the companies submitted false claims under KBR’s Logistics Civil Augmentation Program (LOGCAP) III contract for the delivery of logistics support to U.S. Army forces in Iraq.  In an action originally brought by a whistleblower, the government alleged that KBR employees rigged bids on certain subcontracts in exchange for kickbacks from the subcontractors, and unlawfully passed on the inflated cost of those subcontracts to the government. DOJ

Tagged in: Bribery and Bid-Rigging, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Whistleblower Case,

June 2, 2022

Aerospace company Numet Machining Techniques, LLC and related entities have agreed to pay $5.2 million after voluntarily disclosing to the government that Numet, which had certified itself as a small business concern, had affiliations with other businesses that, the government alleged, made it ineligible for 22 small business set-aside contracts that it had been awarded during the relevant time period.  USAO CT

Tagged in: FCA Federal, Government Procurement Fraud, Set-Asides and Preferences,

May 25, 2022

Textile manufacturer HEYtex USA will pay $3 million to resolve an action brought by a whistleblower under the False Claims Act alleging that the company knowingly supplied fabrics to the U.S. military that failed to meet contract specifications, and falsely certified that its military-grade fabrics met specifications when, in fact, they had failed to pass required testing.  The whistleblower first reported the falsified test results to company management, but was initially ignored.  USAO WD Va

Tagged in: Certifications, Contract Non-Compliance, Defense Contract Fraud, FCA Federal, Government Procurement Fraud, Whistleblower Case,

May 18, 2022

Seven companies in South Korea have agreed to a joint settlement of $3.1 million to resolve allegations that they conspired to suppress and eliminate competition in bidding on 15 contracts for construction and engineering work on U.S. military bases in South Korea awarded by the U.S. Army Corps of Engineers between 2016 and 2019.  The government alleged that as a result of the bid-rigging by the companies, Korea Engineering Consultants Corporation, Yul Lim Construction Co. Ltd., Shin Woo Construction & Industrial Co. Ltd., Seongbo Const. Ind. Co. Ltd., Wooseok Construction Co. Ltd., Yuil Engineering and Construction Co., and Seokwang Development Co. Ltd., the government paid substantially more for services performed under the contracts than it otherwise would have.  DOJ

Tagged in: Bribery and Bid-Rigging, Defense Contract Fraud, FCA Federal, Government Procurement Fraud,

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