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Government Contracts Monitor

Fraud

ASBCA Determines Contract Obtained Through Material Misrepresentation Void <em>Ab Initio</em>, Negating Both Contractor and Government Claims Under the Voided Contract

In a no-longer so infrequent scenario, the Armed Services Board of Contract Appeals (ASBCA or Board) recently held a contract void ab initio where the contract was obtained through material misrepresentation.  Specifically, the erstwhile contractor had told the Government that the contractor intended to use its own personnel on-site in Israel, without which representation the Government would not…

A Preference for U.S. Goods and Services: Buy American Receives A Booster Shot

On January 31, 2019 President Trump signed yet another Executive Order addressing Buy American issues: Buy American, Hire American [here]. This Order requires that federal agencies purchase U.S. goods and services in any and all infrastructure projects including, interestingly, cybersecurity projects. Among other things, this recent Order underscores the Trump Administration’s policy of enforcing…

New Year's Resolutions, 2019 - Reassess Your Size Status, Update Your SAM and DSBS Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings

Happy New Year!  The start of a new year is the time for New Year’s Resolutions.  Here are several we strongly urge you to follow-through on early in 2019.

 

     1.  Reassess Your (and Any Subcontractors’) Small Business Size Status:  Most companies operate on a calendar year for tax reporting purposes.  For such companies the start of a new tax year, and the end of the prior year, means a change and…

Executives Sentenced to Jail Time for Scheming to Violate the Berry Amendment and Trade Agreements Act

Executives of Wellco Enterprises were sentenced earlier this month for their role in a rather brazen scheme to defraud the Government by flouting the sourcing restrictions imposed by the Trade Agreements Act and the Berry Amendment. The executives were among the six defendants originally charged in an 11-count indictment including conspiracy to commit wire fraud, eight counts of wire fraud, major…

When Employees Are Involved, Contractor Fraud Is Harder to Hide

In Poor Richard’s Almanac, Ben Franklin famously advised, “Three may keep a secret, if two of them are dead.” As evidenced by a recently announced settlement of civil False Claims Act allegations by a whistleblower, this is particularly good counsel for government contractors. When employees and subcontractors know about questionable or fraudulent practices in connection with contract…

Short Take: Some Government Contracts Business Models Should Be Avoided

Earlier this week, the Department of Justice unsealed charges against a government contractor for his role in allegedly carrying out a multi-year, $2.6 million scheme to defraud at least 35 subcontractors located across the United States. The indictment, filed on January 30, 2018 in the Eastern District of California, charges Chester L. Neal Jr., 43, of Fresno, California, with two counts of mail…

New Year's Resolutions, 2018

Reassess Your Size Status, Update Your DSBS and SAM Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings

Happy New Year! The start of a new year is the time for New Year’s Resolutions.  Here are several we strongly urge you to follow-through on early in 2018.

    1.    Reassess Your (and Any Subcontractors’) Small Business Size Status: Most companies…

Short Take: Individual Pleads Guilty to Defrauding More than 1,000 Companies, Promising Contracting Preferences with FEMA

The Justice Department recently announced that an individual, Michael Pirolo, residing in Palm Harbor, Florida, has pleaded guilty to wire fraud in connection with a telemarketing scheme promising, for a $500 one-time fee. to “register” companies with the Federal Emergency Management Agency (FEMA} to enable them to receive FEMA contracting preferences. Approximately 1,200 victim-companies were…

FAR Final Rule Bars Contractor Confidentiality Agreements Restricting Employees and Subcontractors from Reporting Fraud, Waste & Abuse

The FAR Council has published a Final Rule, effective January 19, 2017, prohibiting the use of appropriated or otherwise available funds for any contract, grant or cooperative agreement with an entity that requires its employees or subcontractors to sign internal confidentiality agreements or statements that prohibit or otherwise restrict the lawful reporting of fraud, waste or abuse to a…

Beware Abusing Socio-Economic Programs in Federal Procurement – Indictment Alleges SDVOSB “Rent-a-Vet” Scheme, Seeks Assets Forfeiture

Individuals and companies should carefully consider the many serious risks, including criminal prosecution and forfeiture of assets, before seeking to improperly take advantage of and abuse federal programs created to advantage various socio-economic groups. These programs include Government contract set-aside programs for Veteran-Owned (VOSBs), Service-Disabled Veteran-Owned (SDVOSBs),…

Wrongdoing Doesn’t Pay - Civil Penalties, Including for False Claims Act Violations, Keep Going Up – 2017 Inflation Adjustments

Most federal civil monetary penalties will increase by an additional 1.636%, rounded to the nearest dollar, for new assessments issued after the effective date of each respective agency’s implementing regulations. This new increase is on top of last year’s huge, one-time, “catch-up” adjustments intended to offset inflation through October 2015, and is the first of what hereafter will be annual…

<center>New Year’s Resolutions, 2017</center>

Reassess Your Size Status, Update Your DSBS and SAM Listings, Check Your Past Performance Ratings, and Update Your Employment Policies, Handbooks and Postings

Happy New Year! The start of a new year is a time for New Year’s Resolutions.  Here are several we strongly urge you to follow-through on early in 2017.

        1.    Reassess Your (and Any Subcontractors’) Small Business Size Status: Most companies…

 

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