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Other > Qui Tam Government Fraud > Defense Contractor Fraud

Defense contracting fraud is perhaps the most traditional type of Government contract fraud addressed by the False Claims Act. Often, defense contracting fraud involves sophisticated, multi-billion dollar weapons systems and enormous Fortune 500 companies like GE, Boeing, Pratt & Whitney, Grumman, Lockheed Martin, etc. But, defense fraud can include ordinary items like computers, uniforms, vehicle parts, and office equipment.

Where the federal contract involves the procurement of a fleet of aircraft, vessels, or other vehicles or thousands of weapons like cruise missiles, the Government enters into a "prime contract" with a manufacturer or supplier. The prime contractor, in turn, enters into subcontracts with hundreds of other companies that manufacture and supply components or provide essential military goods and services. (See Procurement Fraud) All of these defense contractors are required to comply with the False Claims Act, even though they may not directly contract with the Government.

Typical violations include failure to comply with the contract requirements (See Contract Compliance Violations), such as where the contractor does not abide by the Federal Acquisition Regulations (FAR's) recited or incorporated in the contract. (See Labor, Environmental, Anti-Kickback, and Competitive Bidding Violations)

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Defense Contractor Fraud
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