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December 29, 2020 By cs

DOJ’s Procurement Collusion Strike Force expands

Just over a year after launching the Procurement Collusion Strike Force (PCSF), the U.S. Department of Justice’s Antitrust Division (DOJ) announced new measures to further its pursuit of antitrust and related crimes in government procurement, grant, and program funding.

These changes expand the PCSF’s enforcement capacity and signal DOJ’s enduring — and intensifying — commitment to the PCSF’s mission.

The PCSF has added 11 new national partners: the Department of Homeland Security Office of the Inspector General, the Air Force Office of Special Investigations, and nine new U.S. Attorneys.  As a result, the growing PCSF coalition now includes 29 agencies and offices, including U.S. Attorneys in 22 federal judicial districts; the Federal Bureau of Investigation; and Offices of Inspectors General at six federal agencies.  The PCSF also named the Antitrust Division’s Daniel Glad as the Strike Force’s first permanent director, solidifying the PCSF’s institutional role at DOJ.  Glad previously served as an Assistant Chief at the Antitrust Division’s Chicago Office.

These changes followed a productive year for the PCSF.  Since its formation, the PCSF has facilitated the opening of more than two dozen active grand jury investigations, covering a wide array of procurement collusion and fraud matters from defense and national security to public works projects.  The PCSF has focused on expanding the use of data analytics to detect suspicious bid patterns, sharing best practices on collusion analytics, and providing training on both the buy and sell side of government contracting.  The PCSF has also adapted to COVID-19, including the heightened collusion risks associated with exigent procurement by government agencies.  In March, Attorney General William Barr underscored this focus: “The Department of Justice stands ready to make sure that bad actors do not take advantage of emergency response efforts, healthcare providers, or the American people during this crucial time.”

Keep reading this article at: https://www.insidegovernmentcontracts.com/2020/12/expansion-of-the-procurement-collusion-strike-force/

Filed Under: Government Contracting News Tagged With: abuse, bid rigging, collusion, DOJ, fraud, grand jury, investigation, PCSF, Procurement Collusion Strike Force

August 10, 2020 By cs

HUD IG warns agencies to watch out for bidding fraud

Procurement officials should be watching for signs of bid rigging and collusion, according to a report from the Housing and Urban Development Department inspector general.

The report on anticompetitive bidding is part of the HUD Officer of Inspector General Fraud Bulletin series, which provides guidance on how to spot and deter bad actors seeking to abuse the uncertain circumstances of the pandemic. Though the report does not indicate whether anticompetitive bidding schemes have taken place during the pandemic, it encourages procurement officers to keep their eyes open.

“In a disaster environment, such as the one created by the COVID-19 pandemic, competitive pricing can be impacted by the lack of competition, the scarcity of products, the urgent need to acquire products and services quickly, and the lack of substitute product availability,” the report reads. “Although this does not mean that anticompetitive fraud schemes have occurred, the fluid environment increases the risk that they will.”

Collusion prevents the market from allowing the product with the best quality at the best price from rising to the fore during the bidding process, according to the report. Anticompetitive schemes include practices like submitting “token bids” to make it look as though the winning company beat out the competition, when really it was chosen by colluding parties behind the scenes. Other schemes involve agreements to abstain from bidding or withdraw from the bidding process in order to ensure one company wins.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2020/07/hud-ig-warns-agencies-watch-out-bidding-fraud/167263/

Filed Under: Government Contracting News Tagged With: abuse, acquisition workforce, anticompetitive, bid rigging, collusion, competition, competitiveness, fair and open competition, fair and reasonable, fair and reasonable price, fraud, waste

November 11, 2019 By cs

DOJ announces ‘strike force’ to combat procurement crimes

The Justice Department announced last week the creation of a new interagency partnership to combat antitrust and procurement crimes.

The Procurement Collusion Strike Force will “deter, detect, investigate, and prosecute antitrust crimes and related criminal schemes,” said Assistant Attorney General Makan Delrahim at a press conference. The strike force will use a “district-based task force organization model” to facilitate cooperation between the Justice Department’s Antitrust Division, 13 Attorneys’ Offices, FBI and inspector general offices for Defense and Justice Departments, General Services Administration and U.S. Postal Service.

“When government contractors collude with each other to rig bids for government contracts at the federal, state, or local level, it leads to artificially higher prices for those goods or services.  When the government has to pay those artificially higher prices, all American taxpayers are paying for it,” said Deputy Attorney General Jeffrey Rosen at the press conference. “Strike Force will better inform federal, state, and local government procurement communities about these criminal activities and how to detect and report them.”

Keep reading this article at: https://www.govexec.com/management/2019/11/justice-department-announces-strike-force-combat-procurement-crimes/161103/

Filed Under: Government Contracting News Tagged With: abuse, anti-trust, bid rigging, collusion, corruption, DoD, DOJ, FBI, fraud, GSA, Justice Dept., Postal Service, state and local government, waste

August 21, 2019 By cs

Former State Dept. employee pleads guilty to procurement fraud

The official had a social relationship with a furniture manufacturing executive, with whom she shared confidential contract information.

A former State Department official pleaded guilty last week to disclosing confidential proposal bids in an attempt to help a furniture company executive win a $1.56 million contract.

In December 2016, Patricia DeLaughter, former manager of the department’s Overseas Office Furniture Program, was working to solicit proposals for furnishing a new U.S. embassy when she and another department official knowingly disclosed the confidential bid prices and design plans of competitors to Steven Anstine, vice president of sales for an Overland Park, Kansas, manufacturing company, according to the Justice Department. Multiple news outlets, including The Post and Courier, identified the company as Bernhardt Furniture.

Keep reading this article at: https://www.govexec.com/management/2019/08/former-state-department-employee-pleads-guilty-procurement-fraud/159170/

Filed Under: Government Contracting News Tagged With: abuse, acquisition workforce, collusion, corruption, DOJ, false statements, fraud, Justice Dept., State Dept.

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