A government contractor provides goods or services to the government under a contract. This can be anything from building roads to supplying military equipment. If they overcharge or give the wrong price for their goods or services, employees of that company can take legal action through qui tam.
Deceptive pricing practices
Military qui tam cases are lawsuits that use the False Claims Act to accuse companies with contracts with the Department of Defense or other military agencies of fraud or misconduct. Whistleblowers, who have insider information about the fraud, bring these cases forward. These cases can be about many different kinds of deceptive pricing practices, such as:
- Falsifying cost or pricing data
- Overcharging for goods or services
- Not disclosing discounts or rebates
- Charging for unallowable or non-related expenses
- Billing for things that were not delivered or received by the government
Government contractors are supposed to provide goods or services that benefit the nation. If they don’t give the right price for these goods or services, the government has to protect taxpayer money by taking legal action against fraudsters.
Defense contractors and qui tam cases
Contractors can deceive the government by charging inflated costs or prices for goods or services. For example, when selling goods to the military, a contractor may scam the government by:
- Charged more for helicopter parts than were actually used
- Falsely reported the cost of maintenance or repairs for helicopters
- Charged for unnecessary upgrades or modifications to helicopters
When government contractors significantly overcharge for goods bought from third-party suppliers, it can scam the government of millions of dollars. These pricing inaccuracies and defects can cause the government to overpay for goods and services, ultimately harming taxpayers.
Exposing fraud or misconduct
When someone suspects a contractor charging too much money or charging defective pricing on government contracts, they may receive protection under the False Claims Act. The government greatly values these whistleblowers as they save taxpayer money and prevent fraud. The whistleblower may receive a reward if the government wins the case against the contractor.
