The United States spends hundreds of billions of dollars each year on national defense, contracting with private companies to make everything from weapons to uniforms, and provide services from technical support to janitorial support. Some of these companies defraud the government by requesting more compensation than they are owed.
Government contractor whistleblowers with first-hand knowledge of contractor fraud can bring a qui tam lawsuit under the False Claims Act, and are eligible for a percentage of the government’s recovery in the case. The False Claims Act also protects whistleblowers from employer retaliation.
Government Contractor False Claims
The Federal False Claims Act applies to the actions of all government contractors, regardless of size. Actions prohibited by the False Claims Act include:
- Cross charging on fixed-price and cost plus contracts
- Billing for services or products that were not provided
- Not manufacturing products or providing services according to contractual obligations
- Violating the Truth-In-Negotiations Act
- Failing to disclose product defects
Types of Government Contractor Whistleblowers
There are several different types of government contractor whistleblowers. Some come from defense contractors. Some come from IT service contractors. Some come from procurement or supply contractors. Any company that contracts with the government to provide a product or service and commits fraud may be subject to a whistleblower claim.