GSA reports over $13 billion in suspected contractor fraud, the largest ever identified

The General Services Administration announced that a review of government contracting data, public disclosures and inspector-general findings has identified suspected fraud totaling more than $13 billion, the largest amount ever recorded by the agency. The audit, initiated in March as part of a government-wide crackdown, examined areas such as pandemic-era spending, the Small Business Administration’s 8(a) program, contractor eligibility, bid rigging, false cybersecurity claims and bribery.

GSA Administrator Edward C. Forst emphasized that contractors who falsify records or misrepresent eligibility are stealing from taxpayers and endangering legitimate businesses, pledging cooperation with law-enforcement to recover funds. The agency cited two cases: Broadway Electric Inc. and Cornerstone Contracting Inc., which together agreed to pay $21.3 million to resolve False Claims Act allegations, and Sierra Nevada Company LLC, which will pay $7.75 million after allegations that a former government employee consulted for the firm while influencing contract awards. The GSA is forwarding suspected cases to its Office of Inspector General and the Department of Justice for further investigation.