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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 »

Fluor Corporation

Hoefer v. Fluor Daniel (Overcharging the Government)

Date: 05/07/2001 (Date of Settlement)

Misconduct Type: Cost/Labor Mischarge

Enforcement Agency: Multiple Agencies

Contracting Party: Multiple Agencies

Court Type: Civil

Amount: $8,500,000

Disposition: Settlement

Synopsis: According to the US Attorney’s Office for the Central District of California, Fluor paid $8.2 million plus $300,000 in attorney’s fees to settle allegations of overcharging the Government. “During 1995 and 1996, Fluor Daniel charged millions of dollars of commercial costs to its federal cost reimbursement contracts, and then certified to the United States that the charges were proper, according to the government’s complaint. But, according to the lawsuit, the corporation knew that the charges violated the Federal Acquisition Regulation (FAR) and the federal Cost Accounting Standards (CAS). The allegedly improper costs consisted of overhead attributable to the operations of a Fluor Daniel division called Technology Operating Company (TOC).”