Defense Contractor Fraud
Serving Clients Nationwide
Brian Kenney has worked with the Department of Defense Personnel Center near Philadelphia and therefore possesses special insight into the area of defense contractor fraud. In the 1800s, Abraham Lincoln revived the False Claims Act due to concerns about defense contractor fraud, and Department of Defense fraud continues to be a ripe area for False Claims qui tam actions today. Most general areas of contract fraud apply to the defense arena, but some illegal activity is unique to defense work, including:
- Cross-charging
- Improper product substitution
- Worthless or substandard products
- Improper cost allocation
- Inflation of costs and charges
- Violations of TINA
Cross-Charging
Military contracts generally come in two forms – fixed-price contracts and cost-plus contracts. Fixed-price contracts establish one price for the product, without regard for the cost incurred in making the product. Cost-plus contracts provide the contractor with a set price for the product plus a percentage of the cost incurred to produce the product.
Cross-charging occurs when contractors transfer costs for items provided on a fixed-price contract to items purchased through a cost-plus contract. This can be done through accounting records or through telling employees to charge their time improperly to a cost-plus contract when the employees actually worked on a fixed-price contract.
TINA
The Truth In Negotiations Act, or TINA, requires single-source producers to fully disclose all relevant information about production costs to the government so that the government can make an informed decision about how much to reimburse a supplier of a unique item.
Sometimes, single-source suppliers improperly inflate prices of a unique or expensive item to increase their profit margin, knowing the government cannot obtain competitive bids to drive down prices because no other contractors can or will make the item.
Experienced Defense Contract Fraud Representation
If you have knowledge of a company profiting from defense contract fraud, the attorneys at Kenney & McCafferty can help you file a qui tam lawsuit. All communications with Kenney & McCafferty attorneys during these consultation services are confidential and protected by the attorney-client privilege.
We will devote all of our resources to your case, ensuring that your rights are protected every step of the way. Our skills and experience will give you the greatest likelihood of holding wrongdoers accountable for their fraudulent actions, and we can place you in a strong position to maximize your whistleblower reward.
If you have knowledge of defense contractor fraud or any false claim against the government, please contact our qui tam lawyers for a free consultation today. Kenney & McCafferty attorneys will consult with you about your case, without obligation. All communications with Kenney & McCafferty attorneys during these consultation services are confidential and protected by the attorney-client privilege.
