fine | The Contracting Education Academy

June 12, 2019 By AMK

Defense contracting fraud: A persistent problem

During the five year period from 2013-2017, there were 1,059 criminal cases of defense contracting fraud resulting in the conviction of 1,087 defendants, including 409 businesses, according to a newly released Department of Defense report to Congress. There were another 443 fraud-related civil cases resulting in judgments against 546 defendants.

During that same period, the Department of Defense entered into more than 15 million contracts with contractors who had been indicted, fined, and/or convicted of fraud, or who reached settlement agreements. The value of those contracts exceeded $334 billion, according to the DoD report. See Report on Defense Contracting Fraud, DoD report to Congress, December 2018.

The report was prepared in response to a requirement in the FY2018 defense authorization act at the initiative of Sen. Bernie Sanders. It was released this week under the Freedom of Information Act.

A previous report covering the period of 2001-2010 was produced by the Department of Defense in 2011, also at the request of Senator Sanders. The earlier report likewise found extensive fraud including criminal and civil offensive in defense contracting.

“Simply put, the Pentagon continues to be riddled with waste, fraud and abuse of taxpayer funds to a degree unmatched across the federal government,” Sen. Sanders said in 2017. “It is unacceptable that the Department of Defense continues to lose vast sums of taxpayer money because of fraud perpetrated by major defense contractors. This has got to end.”

Keep reading article at: https://fas.org/blogs/secrecy/2019/05/defense-contracting-fraud

May 18, 2018 By AMK

OSHA fines contractor and temp staffing agency $152,618

A worker died because a contractor failed to protect the worker, and a temp labor agency failed to ensure worker received safety training.

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has cited All Power Construction Corporation of Huntsville, Alabama and staffing agency Labor Finders of Tennessee Inc. after a temporary employee installing sewer lines suffered a fatal injury in a trench collapse in Huntsville. All Power Construction Corp. faces $139,684 in proposed penalties and Labor Finders of Tennessee Inc. faces the maximum allowed $12,934 in proposed penalties.

OSHA issued willful and serious citations to All Power Construction on November 7, 2017 for allowing employees to work in a trench without cave-in protection, failing to provide a safe means to enter and exit the trench, and not having a competent person inspect the trench to identify potential hazards.

Keep reading this article at: https://www.constructionequipment.com/osha-fines-contractor-and-temp-staffing-agency-152618

See OSHA’s trenching and excavation standards at: https://www.osha.gov/SLTC/trenchingexcavation/standards.html

October 4, 2011 By AMK

Move over, FAPIIS – POGO freshens up its contractor misconduct database

The federal government’s largest contractors have paid $25.3 billion in fines and penalties for everything from A to Z: from improper accounting practices to selling the government defective Zylon body armor. These and more than 1,400 other misconduct instances can be found in the Federal Contractor Misconduct Database (FCMD), which has now been updated with fiscal year 2010’s top 100 ranking. [Note: The FCMD is published by the Project On Government Oversight (POGO), a nonprofit watchdog group.]

The top 100 features 7 new contractors, including international accounting firm Deloitte LLP, package delivery company United Parcel Service (UPS), and linguistic services provider Mission Essential Personnel. The FCMD now includes misconduct information on 160 of the federal government’s largest suppliers of goods and services.

The top 100 contractors received $276 billion in contracts last fiscal year, accounting for slightly more than half of the $536 billion in contracts awarded that year. As of today, these 100 contractors have accumulated 821 misconduct instances. Thirty-eight of the top 100 have zero or one instance, a reminder that misconduct need not be accepted as a cost of doing business with the federal government.

As has occurred in the past, the USAspending.gov data on which the top 100 ranking is based contains errors. Therefore, you will see double listings for Booz Allen Hamilton, Lockheed Martin, and Northrop Grumman.

Among the instances you will find in the FCMD:

A Department of Defense Inspector General finding that Boeing overcharged the Army by about $13 million (131.5 percent) for spare helicopter parts.
A DoD Inspector General audit report issued 4 months later that found United Technologies’ Sikorsky Aircraft unit overcharged the U.S. Army by as much as $12 million for Blackhawk helicopter spare parts.
BP’s agreement to provide $1 billion to begin restoration efforts following last year’s massive oil spill in the Gulf of Mexico.
The assault plea of a former DynCorp employee who stabbed a man in Afghanistan in November 2010.
FedEx’s agreement to pay the United States $8 million to resolve allegations of overcharging federal agencies for package deliveries.
The $4 million settlement of claims that Fluor employees defrauded the federal purchase card (“P-card”) program at the Department of Energy’s Hanford Nuclear Site.
Honeywell International’s payment of millions in fines to federal and state authorities for environmental and safety violations at its uranium hexafluoride (UF6) conversion facility in Illinois.
Humana’s $3.4 million fine for violating Florida’s Medicaid fraud reporting law.
IBM’s $10 million settlement of Foreign Corrupt Practices Act charges that its Korean and Chinese subsidiaries gave bribes to government officials.
Corruption charges brought against former SAIC employees alleged to have received kickbacks and overcharged New York City on the CityTime information technology project.

POGO’s FCMD complements the federal government’s contractor responsibility database, the Federal Awardee Performance and Integrity Information System, or FAPIIS. POGO was pleased to discover the recent addition of several new useful features to FAPIIS, which is on its way to becoming an indispensable resource that strengthens accountability over the more than $1 trillion in taxpayer money spent each year on federal contracts and grants.

— Neil Gordon is a POGO Investigator. Published Sept. 29, 2011 at http://pogoblog.typepad.com/pogo/2011/09/move-over-fapiis-pogo-freshens-up-its-contractor-misconduct-database.html.

A worker died because a contractor failed to protect the worker, and a temp labor agency failed to ensure worker received safety training.

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