GSA uncovers $13B in suspected fraud involving 1,000 contractors

The General Services Administration (GSA) has identified more than $13 billion in suspected fraud involving approximately 1,000 federal contractors. This represents the highest total dollar amount and the largest number of contractors ever identified by the agency.

The investigation, which began in March as part of a government-wide crackdown, involved reviewing contracting data, public reports, and information from inspectors general. The scope of the review includes COVID-19 spending, the Small Business Administration’s 8(a) program, bid rigging, bribery, cybersecurity-related false claims, and contractor eligibility issues.

GSA Administrator Edward C. Forst stated that the agency will work with law enforcement to ensure arrests and recover stolen funds, warning that misrepresenting oneself to receive taxpayer dollars puts businesses and their leaders at risk.

As an example of procurement fraud, Broadway Electric Inc. and Cornerstone Contracting Inc., along with CEO John Oehler and President Christian Blake, agreed to pay $21.3 million to resolve False Claims Act allegations. The case involved $73 million in suspected fraud related to contracts reserved for service-disabled veteran-owned small businesses and other eligible entities.