Commercial and Government Contract Holders

Many larger companies can operate both on commercial contracts and government contracts. While this can be a great way to keep up profits, the lines between these two obligations can become blurry. The result can leave the government improperly charged for certain goods and services. Companies can defraud the government by playing off these two contracts in illegal methods of increasing commercial revenue.

If you are aware of improper actions in this regard and are unsure where to turn with this information, we can help. Contact the qui tam attorneys of Tycko & Zavareei, LLP, by calling 202-973-0900.

Problems with Holders of Multiple Contracts

A company that holds both a government contract for a product and a commercial contract may be able to increase their overall profit by having the government cover excessive costs. Companies use cost-switching methods to record the wrong costs for government payment. As a result, the company increases their overall profits while the government pays too much for a product. The following problems can occur because of this manipulation:

• Charging overtime-exempt labor costs excessively for the government
• Charging non-specific costs on a pay-plus contract
• Charging excessive overhead costs

This illegally-gained profit then allows companies to lower the prices on their commercial products. As a result, they build a more successful business at the expense of taxpayers.

Contact Us

If you have information regarding fraudulent action committed by a federal contract holder, there may be legal action available. To learn more about the False Claims Act, contact the qui tam lawyers of Tycko & Zavareei, LLP, at 202-973-0900.