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Federal Contractor Misconduct Database (FCMD)
The federal government routinely awards contracts to companies with
histories of misconduct, including
…
contract fraud and other
violations. POGO believes that providing this website will help to
improve contracting decisions and increase public knowledge of how
the government spends billions of taxpayer dollars each year.
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SIGIR Audit of Reconstruction and Logistics Contract
The Special Inspector General for Iraq Reconstruction (SIGIR) examined subcontracts associated with a contract awarded to Anham in September 2007 to provide for the receipt, storage, and onward movement of supplies and equipment needed to reconstitute the Iraqi Security Forces and reconstruct the country’s infrastructure. SIGIR found significant weaknesses in the government’s oversight of Anham’s business systems and other contract administration functions, which left the government at significant risk of paying unreasonable costs. SIGIR also conducted a limited incurred-cost review of Anham and questioned almost 39 percent of the costs ($4.4 million) reviewed. SIGIR questioned whether these costs were fair or reasonable because of questionable competition practices, inappropriate bundling of subcontractor items, and close working relationships or possible ownership affiliations (i.e. “less-than-arm’s-length” distance) between Anham and certain of its subcontractors. In some instances, Anham billed the government for plumbing and electrical items at prices that SIGIR determined were marked up by several thousand percent. As a result of its findings, SIGIR questioned all of the costs on this contract ($113.4 million) and recommended the military initiate a systematic review of billing practices on all Anham contracts in Iraq and Afghanistan. Anham sharply disputed SIGIR’s findings, calling them “false, without legal or factual justification,” and “completely unfounded.”
- Misconduct Type
- Cost/Labor Mischarge
- Enforcement Agency
- SIGIR
- Contracting Party
- Defense - General
- Court Type
- N/A
- Disposition
- Investigative Finding
- Date of SIGIR Report
- 7/30/2011