General Services Administration (GSA) Fraud

False Claims Act cases may result from knowing violations of Federal Supply Schedule contracts. The GSA FSS enables government agencies, to purchase a variety of products and services from commercial vendors without having to engage in an open bidding process every time. Moreover, the GSA FSS is designed to offer purchasers the “best price” for the listed goods and services.

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Defective Pricing Requirements

Before entering into contract negotiations, companies that participate in the GSA FSS must certify that their products and services are being provided to the GSA at the same or a better price as is offered to their commercial customers. A vendor may be liable under the False Claims Act for defective pricing when it either misrepresents or fails to disclose the information relating to commercial customers.

Price Reduction Clause

Federal Supply Schedule contracts include a provision called a price reduction clause. This provision requires the vendor to inform the Government if, during the contracting period, they provide any price reductions to other commercial customers. If such a reduction has occurred, the Government must also be given the same relative discount.

U.S. Trade Agreements Act Compliance

In addition to the defective pricing requirements and price reduction clause, Federal Supply Schedule contracts also require vendors to verify that they are compliant with the terms of the U.S. Trade Agreements Act. Under this law, vendors are only permitted to sell products to the Government that were produced in countries with reciprocal trade agreements with the United States. Eligible countries include, but are not limited to:

  • Canada
  • Mexico
  • England
  • France
  • Japan

Ineligible countries include, but are not limited to:

  • China
  • Taiwan
  • Malaysia
  • South Africa

The attorneys at Kenney & McCafferty have the skills and experience to hold wrongdoers accountable for their fraudulent actions — and help you maximize your whistleblower rewardContact us or call 800-533-1015 for a free consultation today.

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