The United States Government is a huge purchaser, but it is still the government. As such, it has certain policies that it tries to implement in everything that it does, including its purchases. One important government policy is to favor U.S. businesses over businesses in foreign countries. One way it does this is to require that products it buys be manufactured in compliance with the Buy American Act and certain Trade Agreements. These are laws and agreements which promote U.S. manufacturing and jobs. By doing this our government is saying unambiguously that the sourcing of the products is as important to the government as the cheapest price. To make sure that contractors are complying with these important policies in performing their contracts, they must certify to the government that materials or products they are supplying under the contract have been manufactured in accordance with the Buy American Act or Trade Agreements Act.
American-made products are not necessarily the cheapest ones available, however. A government contractor may be tempted to substitute a cheaper imported product and pass it off as American-made by falsely certifying compliance about the origin of the product to pocket the difference as added profit. If a contractor does this, it may be in violation of the False Claims Act. It is important to keep in mind that the contractor may have liability under the False Claims Act even if the imported product is of the same quality and specifications as the American-made one. It is still potentially a fraud on the government because the contractor has obtained a benefit from the government contract while depriving the government of its ability to promote American businesses and manufacturing through its own contracts.
If you believe someone has engaged in one of these kinds of schemes – or some other scheme to commit a fraud on the government, and you would like to learn more about or would like to bring a whistleblower lawsuit, the qui tam lawyers at Keller Grover LLP can help you. These whistleblower lawyers understand qui tam litigation, including the whistleblower protection provisions, and strive to achieve the best possible results for their clients.