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Government Contracting Fraud
Liability under the False Claims Act extends to false claims made in association with government contracts, including overcharging, substitution of inadequate materials, and false certification of compliance with a contract’s terms. In addition to a contractor’s liability under the False Claims Act, Congress recently amended the statute to specify that liability may also attach to individuals who present a false claim to a “contractor, grantee, or other recipient.”
Government contracts between private corporations and the federal government accounted for $535.9 billion in federal spending for FY 2011. Although defense contracting spending accounts for a large portion of overall government contracts, the federal government also spends billions of dollars per year on contracts with non-defense related companies that are subject to fraud.
Non-defense contract fraud includes false statements made in connection with a Multiple Award Schedule (MAS) contract with the General Service Administration (GSA), public works construction contracts, contracts with the Department of Energy (DOE), and environmental cleanup contracts.
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