GSA Whistleblowers

The United States General Services Administration (GSA) assists with procurement work for all other federal agencies. GSA oversees 66 billion dollars of procurement annually and manages about 500 billion dollars of federal property, including 8,300 owned and leased buildings for federal offices and operations and a motor pool fleet of 210,000 vehicles.

Common fraud schemes against the GSA include:

  • Best Price Fraud (denying GSA discounts offered to other customers)
  • Trade Agreement Act Fraud (supplying the federal government with goods or supplies not made in the U.S. or made in a country that is not part of the Trade Agreement Act)
  • Truth In Negotiations Act (TINA) violations (when sole source providers conceal true costs or discounts given to other purchasers, during the course of negotiations with the government)
  • Goods and services never actually delivered or rendered
  • Bribes and kickbacks
  • Deliberate overcharging
  • Double billing
  • Bid rigging or collusion to frustrate competitive bidding
  • Defective products and services
  • Failing to comply with contract specifications
  • Charging time or materials used for one project to another (“cross charging”)
  • Making false statements to obtain, or to keep, a contract
  • Inflating overhead costs or other expenses
  • Substituting inferior parts
  • Misrepresenting eligibility for Minority, Women or Disadvantaged Business Enterprise Programs
  • Failing to credit the government for rebates received from subcontractors
  • Billing for “ghost” payrollers
  • Retaining overpayments

Case Examples

A number of successful False Claims Act cases have been brought against companies alleging fraud against the GSA. By way of example:

In 2013, CDW-Government LLC agreed to pay $5.66 million to resolve whistleblower claims that the company violated the False Claims Act by improperly charging government purchasers for shipping, selling products to the government that were manufactured in China and other countries, in violation of the Trade Agreements Act, and underreporting sales in order to avoid paying GSA its “Industrial Funding Fee,” a fee based on total contract sales that is designed to cover GSA’s costs of contract administration. The whistleblower in this case was a former company sales representative. He received $1.58 million as his share of the settlement. Read more

In 2012, Diesel Filter Systems, Inc. agreed to pay $628,000 to settle whistleblower claims that the company violated the False Claims Act by routinely overcharging the government for diesel filter systems purchasing from the company through a GSA contract. The whistleblower received $94,200 as his share of the settlement. Read more 

In 2009, NetApp Inc. and NetAPP U.S. Public Sector, computer storage and data management solutions companies, agreed to pay $128 million to settle whistleblower claims that the companies violated the False Claims Act by knowingly making false statements to GSA about sales practices and discounts offered to other customers and by failing to give government purchasers discounts it gave to other customers, in violation of the price reduction clauses in the companies’ GSA contracts. The whistleblower in this case was an ex-employee of the company. He received $19.2 million as his share of the settlement. Read more

If you have knowledge and solid evidence of fraud involve GSA contracts, please contact our Chicago whistleblower lawyers.
Consultations are free and confidential.