A government needs to hire vendors to provide a variety of goods and services. These contacts make up a large portion of a budget and total large sums. If a vendor delivers less than the contract, their profits rise. This can be very tempting. However, the government gets less than what it paid for, and this is Government Contract Fraud.
About Substituting Products
Substitution of products happens in a variety of ways. An example would be if a vendor signed a contract to paint inside government offices. In the contract, the vendor says each room will need a primer and two coats of paint. However, they only use one coat of paint to save on labor and material costs. Therefore, this is fraud.
Another way this type of fraud happens is when some federal projects require specific products to be used. These may be using a specified percentage of materials fabricated in the United States. To increase profits, a contractor may substitute a lower-cost foreign-made good. The foreign-made good may be the same quality, but this substitution still violates the law.
Red Flags that Expose Substituting Products
Some vendor red flags of a product substitution are:
- Complaints about quality
- A high rate of rejections, returns, or failures
- Lack of inspection or falsified reports
- A contractor restricts or avoids inspection of goods upon delivery
- Mismarking or mislabeling of products and materials
- A contractor offers to select samples for testing programs
- A contractor refuses to provide supporting documentation regarding production or manufacturing
- Vendor fails to supply warranty information
- Vendor fails to apply manufacturers’ rebates or discounts towards final costs
- Photocopies of certifications, delivery, and production records
- Irregularities in signatures, dates, or quantities on delivery documents
- Contractors didn’t sign any certifications required in the contract
- Allegations of bribery of inspectors
- A supplier entertains or provides gratuities to procurement personnel
Premier Complex Litigation Attorneys
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Most of all, our law office is resourceful and dedicated to pursuing any compensation you are due. Because of this, we have received a high degree of peer recognition and professional achievement, such as inclusion on numerous Plaintiff Steering Committees. We will take whatever legal measures are necessary when fighting for your rights to damages.
Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.