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ARTICLE · 10 OCTOBER 2014

Failure to Meet Specified Labor Qualifications Leads to False Claims

Fox Rothschild LLP
Fox Rothschild LLP
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Bottom Line Up Front: Contractors who provide labor, materials, or products to federal agencies that do not meet the specifications / qualifications called for by the contract are likely violating the False Claims Act.

United StatesGovernment, Public Sector

Bottom Line Up Front: Contractors who provide labor, materials, or products to federal agencies that do not meet the specifications / qualifications called for by the contract are likely violating the False Claims Act.

DRS Technical Services, Inc. (DRS), a Virginia-based defense contractor agreed to pay the government $13.7 million to settle False Claims Act allegations that it overcharged the Department of Defense (DoD) for work performed by unqualified staff.The DoD alleged that DRS employed workers on several DoD contracts that did not meet the specified labor qualifications, which resulted in DRS overbilling the government for less-qualified workers. The period of overbilling was alleged to have run from 2003 to 2012, some of which involved labor supporting DoD forces in Iraq and Afghanistan.

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