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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 33
Jacobs Engineering Group, Inc.
Jacobs Engineering Group provides engineering and construction services. With over 40,000 employees and annual revenues approaching $8 billion, Jacobs covers such markets as aerospace and defense, chemicals, oil and gas, biotechnology, and consumer products.
Federal Contract $: $1843.3m
Total Number of Instances: 2
Total Misconduct dollar amount: $ 37.5m
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Instances of Misconduct
1. Bond v. Jacobs Engineering (Improperly Charged Overhead Costs)
In 2000, Jacobs Engineering Group agreed to pay $35 million to settle allegations that it improperly charged overhead costs to various government contracts. The settlement resolved a qui tam action filed in 1997 by former employee Edwin Bond. In November 1999, a court determined that Jacobs had inflated lease payments under cost-plus contracts in violation of the Federal Acquisition Regulations (FAR).... more»
2. United States v. Sverdrup Technology, Inc. (Mischarging NASA for Labor and Materials)
On August 15, 2001, the Department of Justice announced that Sverdrup Technology, Inc., a subsidiary of Jacobs Engineering, Inc., “agreed to pay the government $2.5 million to resolve allegations of mischarging the National Aeronautics and Space Administration (NASA)…The allegations stem from mischarging practices carried out by two laboratories operated by Sverdrup at the Stennis Space Center in Hancock, Mississippi. In both instances, NASA alleged that [Sverdrup] mischarged the United States when it had the technical services contract at the Stennis Space Center in the early to mid-1990's. In the first case, the court on January 24, 2001 found that Sverdrup…violated the False Claims Act when it mischarged overhead labor and materials costs as direct costs, which allowed the company to increase its profits by disguising the true extent of its overhead expenses…The second case brought by the government against Sverdrup involved similar allegations, but at a different laboratory operated by the company at the Stennis Space Center.”... more»
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