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)
.
