How to Report Procurement Fraud
Talk to a Federal Whistleblower Lawyer About Reporting Procurement Fraud to the Government
The cost of procurement fraud is substantial. According to the U.S. Government Accountability Office (GAO), the federal government had financial loss of somewhere between $233 billion and $521 billion annually to fraud.
Reporting Procurement Fraud as a Federal Whistleblower
The U.S. Department of Justice (DOJ), U.S. Department of Defense (DOD), and other agencies’ Inspector General (IG) offices have implemented measures to uncover procurement fraud. However, all government agencies that engage in procurement process also rely heavily on whistleblowers to come forward. While reporting procurement fraud helps save taxpayer dollars, the False Claims Act (FCA) also provides an additional incentive for whistleblowers in the form of whistleblower rewards.
So, how do you report fraud to the federal government?
If you work for (or used to work for) a federal contractor or subcontractor, or if you have information about contractor fraud through other means, the specific steps you need to take to serve as a federal whistleblower depend on the federal agency involved. Each agency and IG office has its own procedures for reporting procurement fraud—and following these procedures is critical for securing protection as a whistleblower and establishing your eligibility for a reward. At Oberheiden P.C., we have experience helping individuals report procurement fraud to agencies across the federal government, and we can use this experience to help guide you forward.
5 Preliminary Steps to Take if You Need to Report Procurement Fraud
While our lawyers (including our former DOJ prosecutors) can help you report procurement fraud to the federal government, there are some preliminary steps you need to take to ensure that we are able to assist you. To begin the process of serving as a federal whistleblower, you should:
1. Keep the Information You Have in Your Possession in a Safe Place
To serve as a federal whistleblower, you must be able to provide the appropriate federal department or IG’s office with sufficient information to warrant further investigation. The more information you can provide, the better. With this in mind, if you currently have information in your possession about inefficient or ineffective practices on federal contract or bid process, you should be sure to keep this information in a safe place. If you have questions about copying electronic files from a company server or taking hardcopy files from your office, we encourage you to contact us right away for guidance.
2. Take Detailed Notes About the Procurement Fraud
Along with keeping the information you have about procurement fraud in a safe place, you should also take detailed notes. For example, you should try to record details such as:
- When did you first learn about the fraud?
- How did you first learn about the fraud?
- What is the nature of the fraud (i.e., bid rigging, price fixing, possible collusion, bribery or kickbacks to obtain an unfair advantage, false invoices, inflating contract prices, approving inflated invoices, or submitting false information for personal gain)?
- Who was involved in perpetrating the fraud against the federal government?
- How widespread is the fraud and what is the approximate dollar value involved?
Again, these are just examples. Here too, the more information you can preserve, the better. The answers to the questions listed above will all be key to determining if you are eligible to serve as a federal whistleblower as well as determining the specific steps you need to take to report the procurement fraud to the appropriate department, office, or agency.
3. Keep All Information and Details to Yourself
At this point, you should keep all of the information and details to yourself—without exception. While there are several reasons why, one of the key reasons is that to serve as a federal whistleblower (and establish your eligibility for the protections and compensation that are available), you must generally be the first to come forward.
To be clear, providing information to a news organization or exposing procurement fraud on social media does not qualify you as a federal whistleblower. Serving as a federal whistleblower involves providing material information directly to the federal government through the appropriate means. If you go public, not only will you most likely not be protected, but this could also potentially make it more difficult for the government to successfully pursue enforcement.
4. Schedule a Free and Confidential Consultation with a Federal Whistleblower Lawyer
Given the complexity—and the importance—of reporting procurement fraud to the federal government, we strongly recommend engaging an experienced lawyer to represent you. At Oberheiden P.C., our whistleblower lawyers represent all individuals on a contingency-fee basis. This means that you will pay nothing out-of-pocket for our legal representation.
When you schedule a free and confidential consultation at our firm, you are under no obligation to move forward with reporting procurement fraud to the federal government. At this stage, our only role is to help you make informed decisions. If you decide to blow the whistle, we will represent you during the process. If you decide not to blow the whistle for any reason, that is a decision that you are well within your rights to make.
5. Take Action As Soon As Possible
To ensure that you do not lose your opportunity to qualify as a federal whistleblower—and to help maximize the federal government’s chances of successfully pursuing enforcement—it is important that you take action as soon as possible. Once you get in touch, we will arrange for you to speak with one of our senior lawyers in strict confidence promptly, and we will work diligently to help you make an informed decision about whether to move forward with reporting procurement fraud to the federal government.
Put our highly experienced team on your side
Dr. Nick Oberheiden
Founder
Attorney-at-Law
Lynette S. Byrd
Former DOJ Trial Attorney
Partner
Brian J. Kuester
Former U.S. Attorney
Hon. Kevin McCarthy
55th Speaker, U.S. House of Representatives (ret.)
Government Consultant
Mike Pompeo
Of Counsel
Former U.S. Secretary of State
John W. Sellers
Former Senior DOJ Trial Attorney
Linda Julin McNamara
Federal Appeals Attorney
Nicholas B. Johnson
Former Prosecutor
Roger Bach
Former Special Agent (DOJ)
Chris J. Quick
Former Special Agent (FBI & IRS-CI)
Michael S. Koslow
Former Supervisory Special Agent (DOD-OIG)
Ray Yuen
Former Supervisory Special Agent (FBI)
Reporting Procurement Fraud to the Federal Government
Let’s say you decide to move forward. How do you report federal procurement fraud?
As we said above, the specific answer to this question depends on the federal department, office, or agency involved. The reporting procedures can also vary for federal personnel, employees of federal contractors and subcontractors, and other individuals. Generally, however, you will need to file a formal whistleblower complaint, or “qui tam” complaint, according to the relevant governmental authority’s procedures and in compliance with the requirements under the False Claims Act.
Once you file, you should receive a response from the relevant department, office, or agency. This response will indicate whether the relevant governmental authority needs additional information, intends to open an investigation, or is declining to pursue the matter further. At this stage, your lawyer will advise you regarding the next steps involved, and your lawyer will continue to work with the government on your behalf as warranted.
FAQs: How (and When) to Report Federal Procurement Fraud
Where Do You Report Federal Procurement Fraud?
Typically, whistleblowers will need to report procurement fraud to the U.S. Department of Justice (DOJ), Federal Bureau of Investigation (FBI), or the Inspector General’s Office of the specific federal department or agency involved. When you speak with a lawyer at Oberheiden P.C., your lawyer can explain where you need to file a whistleblower report based on the specific information you have in your possession.
What Documentation Do I Need to Report Procurement Fraud to the Federal Government?
Generally, you do not need any specific type of documentation to report procurement fraud to the federal government, although you must prepare and file your whistleblower report according to the relevant department, office, or agency’s requirements. To qualify as a federal whistleblower, you must be able to provide the government with sufficient documentation to demonstrate that an investigation into possible procurement fraud is warranted. This does not necessarily mean that you must be able to conclusively prove fraud with the documentation you have in your possession.
Am I Safe from Retaliation if I Report Procurement Fraud
If you qualify as a federal whistleblower, your employer will be prohibited from retaliating against you based on your decision to report procurement fraud to the government. Does this necessarily mean that your employer will not retaliate against you? No. However, you will have clear legal rights if your employer violates the law.
Is There a Reward for Reporting Federal Procurement Fraud?
Whistleblowers who report procurement fraud to the federal government are generally eligible to receive rewards under the False Claims Act. To be eligible for a reward, you must strictly follow the relevant reporting requirements, and the information you provide to the federal government must lead to a successful enforcement action.
Do I Need a Lawyer to Report Procurement Fraud to a Federal Agency?
While you are not required to hire a lawyer to report procurement fraud to a federal agency, we strongly recommend that you do so. A lawyer who has relevant experience will be able to help you make an informed decision about whether to come forward, assist you with meeting all pertinent requirements, and communicate with the relevant federal authorities on your behalf. Hiring a lawyer to represent you costs nothing out-of-pocket in this scenario.
