Category Archives: Suspension Debarment and Penalties

Posts in this category deal with suspension, debarment, fines, and other penalties imposed on government contractors, as well as settlement agreements reached between the government and contractors to resolve these issues.

False WOSB Self-Certifications Potentially Rampant, Says NASA OIG

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False or incorrect women-owned small business self-certifications may be a significant government-wide problem, according to a recent audit report issued by the NASA Office of Inspector General.

The NASA OIG report states that in a study of sampled awards to self-certified WOSBs, 7 out of 20 awardees, or 35 percent, “may not have met the criteria for a woman-owned small business.”  Noting that these firms won nearly $75 million in government business in 2010 alone, the NASA OIG has referred its report to the SBA and GAO, concerned about a “potential Government-wide effect of this condition.” Continue reading →

The False Claims Act, Lance Armstrong, and “Reps & Certs”

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On Friday, the Department of Justice joined a False Claims Act lawsuit against Lance Armstrong.

Among his many troubles, Lance Armstrong now has a big government contracts problem on his hands–and Lance’s problem can provide an important lesson about “representations and certifications” for the less-famous government contractors among us.

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A Slap On The Wrist? Contractor Avoids Jail Time For SDVOSB Fraud

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A man who lied about being a service-disabled veteran–and received nearly $6 million in VA SDVOSB set-asides–will not spend a single day in jail.

According to a Department of Justice press release, the man in question, John Witty, was sentenced to a fine, probation, and community service.  Yes, Witty’s wallet will be lighter, and maybe there were extenuating circumstances not evident from the press release–but the lack of jail time seems a tad generous.

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

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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

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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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SDVOSB Fraud: Justice Department Indicts Construction Company Owner

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The U.S. Department of Justice has indicated David E. Gorski, an owner of Legion Construction, Inc., for alleged service-disabled veteran-owned small business fraud.  The indictment alleges that Gorski, a non-veteran, fraudulently represented that Legion was a SDVOSB to win federal SDVOSB set-aside contracts, and used genuine service-disabled veterans as figureheads in an attempt to avoid detection.

VetBizCentral, an organization providing various services to veteran entrepreneurs, has posted a full copy of the Gorski indictment on its website.  The allegations are well worth a closer look.

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Some NAVFAC MAC Task Order Awards Flawed, Says DOD IG

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Now that the GAO no longer has authority to hear protests of many task order awards valued under $10 million, it is fair to question whether the absence of the self-policing system established by the protest mechanism could contribute to unreasonable or improper task order awards.

According to a report issued by the Department of Defense Inspector General last Friday, at least one agency, the Naval Facilities Engineering Command, has experienced some troubling irregularities in the MAC task order award process, including twice failing to permit all MAC holders to bid on task order competitions.

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