Many government contracts, especially those involving defense and procurement, are performed over extended periods of time, sometimes years.  In these situations it is not uncommon for the contractor to provide progress reports at regular intervals in order to be paid for the work to date.  These progress reports typically contain important information on costs and whether the contract is proceeding in a timely fashion.  They may also provide important updates on the feasibility of the contract itself.  For example, in the development of a complex weapon or electronic, there may be preliminary studies or tests which will impact the long term viability of the contract as a whole.  These progress reports keep the government officials informed about how money is being spent, and play an important role in the government’s ongoing decision-making as the contract continues.  In some instances, officials may see that everything is proceeding as planned and extend or renew the contract.  In others, they may choose to modify the contract.  They could even decide the objective of the contract will never be realized and elect to terminate the contract entirely. 

Fraud on the government may occur if a contractor knowingly falsifies one of these progress reports to conceal information from the government.   This may happen because the contractor wants to be paid sooner rather than later.  It may also occur when a contractor learns of unexpected costs or some other information that may change the government’s willingness to continue the contract at all.  Because reporting what it knows may lead to contract modification (or ultimately to termination of the contract) and a reduction in how much the contractor is paid, the contractor may suppress what it knows to continue to receive payments from the government.  If this happens, it violates a fundamental rule of government contracting: the contractor must deal honestly with the government at all times.  It may also be the basis for liability under the False Claims Act.

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.