Product Substitution and Procurement Fraud

Anyone with information about fraud that improperly utilizes government funding has the option to turn in the individuals committing the crime. The False Claims Act was designed to protect so-called “whistleblowers” and to offer compensation for the sensitive and valuable information that they might possess. Procurement fraud is a type of illegal act in which a contractor cheats the organization that hired them out of money by using substandard parts or falsifying documents regarding the cost of labor and supplies.

Information on Product Substitution

When a contractor is hired for a specific job they will come to an agreement regarding the following with the organization or individual that hired them:

• The type of work that will be done
• The materials to be used
• The amount of labor required for the project

After this contract is agreed upon by both parties, work will begin. If a contractor chooses to illegally use products or supplies that are not approved by both parties, they may be committing a form of procurement fraud through product substitution.

The contractor may determine that they can make a larger profit from a contract if they use supplies that are less expensive than those upon which the terms of the contract were based. The use of refurbished items, old or previously used materials, or any type of product that is inferior in quality to those which are expected by the client may constitute product substitution.

Contact Us

If you or someone you know is aware of procurement fraud, the Qui Tam attorneys of Tycko & Zavareei, LLP, can help you to enable the government to take action against the parties. Contact our offices today at 202-973-0900 for more information.