Gov contract fraud settlement · GOVCON STARTUP 🚀

Gov contract fraud settlement

Booz Allen Hamilton agreed to pay back the government $377.5 million.

Y’all…this is one of the largest settlements for procurement fraud EVER.

From 2011-2021, Booz Allen allegedly created “indirect cost pools”...lumping together their commercial and government contracts and tacking on additional costs to have a constant pool of money to access.

That’s like saying…I’m going to lump all my clients into one bucket and charge everyone an additional $150/month…just so I have a pool of money in case I need it to cover other costs.

It may not seem like a big deal…but with the government….

A contractor can only charge the government for costs directly related to the contract. A contractor can not charge the government costs that have nothing to do with the contract.

that way, a company doesn’t use your hard-earned tax money to subsidize their non-government related work.

Yep…that makes sense.

A Booz Allen employee blew the whistle…and now the company has to pay.

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