Tendering Frauds In Financial Matters

Overcharging in cost type contracts

Overcharging in cost type contracts refers to schemes by contractors to defraud the government by charging additional amount on cost-type contracts. The contractor can do so in a number of ways, including charging labor costs incurred on a private fixed price contract to the government cost-plus job, or by charging the same  amount of costs to two or more contracts.

Concealing the original cost

 Concealing the original cost occurs if government contractors fail to disclose accurate, current and complete pricing date in contract proposals on cost-type contracts. The contractors can use inflated costs in proposals for labor and materials, submit fake price quotations from phantom suppliers, fail to disclose discounts, falsify supporting documentation, or resort to other tactics in an attempt to improve their profits.

Factitious, elevated or duplicate invoices

Tendering companies can intentionally produce false ,duplicate or inflated invoices.

(Meaning that no services were provided)

The Plan can involve contractor acting alone or in collusion with an employee of the victim department who shares in the profits.

 Inappropriate use of petty cash

Inappropriate use of petty cash fund (also known as “special operating accounts”) is a common game. Petty cash can be embezzled or used improperly by contractor or employees. The employees might submit false or inflated requests for reimbursement of expenses, use the fund for personal or unauthorized expenditures or “double the cream” by submitting reimbursement both to fund and accounts payable.