Government Procurement Fraud & False Claims Act
Understanding the False Claims Act
The False Claims Act (FCA) is a federal law in the United States that targets fraud against the government. It was enacted during the Civil War in 1863 to combat fraudulent billing practices by government contractors supplying goods and services to the Union Army. The law has been amended and expanded over the years and remains one of the most important tools in combating contractor fraud involving government programs and funds.
Combating Government Contract Procurement Fraud
The False Claims Act primarily aims to hold individuals and entities accountable for knowingly submitting false or fraudulent claims for payment to the federal government. The following can be considered contractor fraud under the FCA:
Overbilling: Submitting invoices overstate the actual costs of goods or services.
Providing defective products or services: Supplying substandard or non-compliant goods or services while falsely representing them as meeting the required standards.
Double billing: Charging the government multiple times for the same goods or services.
Falsifying records: Altering documents or records to conceal the fraud.
Kickbacks: Illegally giving or receiving payments or incentives to influence government contracts or transactions.
Under the FCA, whistleblowers, also known as qui tam relators, can bring lawsuits on behalf of the government. If successful, these whistleblowers may receive a percentage of the recovered funds as a reward for exposing the fraud.
Contract Fraud vs Procurement Fraud
As opposed to contractor fraud, procurement fraud refers to fraudulent activities related to government procurement processes. This can involve corruption, bribery, collusion, or other illegal practices aimed at gaining an unfair advantage in the awarding of government contracts.
Some common examples of procurement fraud include:
- Bid rigging
- Kickbacks
- Contract splitting
- False certifications
Procurement fraud can be detrimental to public trust and waste taxpayer money. Both individuals and companies found guilty of procurement fraud can face severe penalties, including fines, imprisonment, and exclusion from future government contracts.
Government Contract Procurement Fraud Attorneys You Can Trust
Combating contractor and procurement fraud requires a collective effort from government agencies, law enforcement, and whistleblowers to ensure transparency, accountability, and the responsible use of taxpayer funds. It is critical that any government contractor subject to an investigation or charged with contractor fraud under the False Claims Act immediately seek seasoned counsel.
Many of our government contract attorneys previously served as government prosecutors before joining our team. This specialized knowledge allows our attorneys to develop a tailor-made strategy based on the anticipated tactics and theories of prosecutors or investigators.
Get in touch with our team to discuss your case.
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Frequently Asked Questions
Government contracting refers to the process through which federal, state, or local government agencies purchase goods and services from private businesses or individuals to fulfill their operational needs and public services.
Government contracting is regulated by various laws and regulations, including the Federal Acquisition Regulation (FAR), agency-specific regulations, the Competition in Contracting Act (CICA), the False Claims Act, and various socio-economic programs.
The FAR is a set of rules and guidelines issued by the federal government that govern the acquisition process for all executive agencies. It covers various aspects of contracting, including procurement procedures, contract administration, and contractor responsibilities.
We assist clients by reviewing and understanding relevant regulations, ensuring they have appropriate policies and procedures in place, providing training on compliance, and conducting internal audits to identify and address potential issues.
A bid protest is a formal complaint filed by a bidder or offeror who believes that a government procurement process was conducted unfairly, improperly, or in violation of procurement laws and regulations.