What is Procurement Fraud?

The continuous outsourcing of goods and services by the government has resulted in fraud within the acquisition life cycle of a product or service. Government procurement fraud can occur any time the government enters into a contract with a private entity. There is a multitude of ways that procurement fraud can be committed.

The following forms of government procurement fraud are the most typical:

  • Bid rigging/bid splitting to secure contracts
  • Overcharging for goods, services, or labor
  • Creation of shell companies to facilitate fraudulent payments
  • Collusion between suppliers
  • Improper product substitution
  • Worthless or sub-standard products
  • S. Trade Agreements Act compliance
  • Inflation of costs and charges

As a result of the overwhelming volume of procurement transactions, and the fact that fraud is often embedded in a contract making it difficult to spot, the False Claims Act has as become an increasingly powerful tool in helping to identify fraud, waste and abuse in government contracting.

To report procurement fraud, contact Kenney & McCafferty at 800-533-1015 or email us for a free consultation today.

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