8(a) Fraud: Proposal Claimed Past Performance Of Fake NASA Contract

A proposal submitted on behalf of an 8(a) company claimed that the company had performed a $3 million NASA contract even though no such contract existed, according to a recent report issued by the SBA Office of Inspector General.  As alleged in the SBA OIG report, the same honesty-challenged 8(a) company claimed to have 33 employees, even though it never had more than two.

Perhaps it is little wonder that the company in question is alleged to have passed through nearly 100% of its work on several 8(a) set-asides to its non-8(a) subcontractor.

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DOJ Intervenes In False Claims Suit Over FAR Lobbying Restrictions

In the latest indication that the Government is on the lookout for false and improper contractor certifications, the Department of Justice has intervened in a False Claims Act lawsuit against a Texas-based contractor involving the FAR lobbying restrictions.

According to a False Claims Act complaint filed by a whistleblower, Fluor Hanford Inc. and its parent company, Fluor Corporation, used federal funds for lobbying purposes, in violation of a FAR provision requiring Fluor to certify that it would not engage in lobbying with federal funds.

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AbilityOne Program: False Claims Act Allegation Leads to $5 Million Settlement

More than once, a small government contractor has complained to me that there is “just no way” a particular AbilityOne contract recipient is performing at least 75% of direct labor hours with people who are blind or have other significant disabilities, as is required for a non-profit agency to participate in the AbilityOne Program.

Now those same contractors might be saying “I told you so.”  The U.S. Department of Justice announced yesterday that a Texas company has agreed to pay $5 million to resolve False Claims Act allegations that the company failed to comply with the 75% direct hour requirement over a period of six years, but misreported its compliance to the government.

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False SDVOSB Certification Results in Criminal Conviction

In this era of enforcement, lost contracts are just the tip of the iceberg when it comes to false certifications of eligibility for the SBA’s and VA’s small business programs.  The story of John White and Mitsubishi Construction Corp. should serve as a dire warning about just how serious the consequences of false certifications can be.

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