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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. Read more…

Improperly Restrictive Confidentiality Agreement

The U.S. Securities and Exchange Commission (SEC) brought an enforcement action against KBR for using improperly restrictive language in an employee confidentiality agreement that could possibly stifle the whistleblowing process. KBR required witnesses in certain internal investigation interviews to sign a statement warning they could face discipline if they discussed the matters with outside parties without the prior approval of KBR’s legal department. Since these investigations included allegations of possible securities law violations, the SEC found that these terms violated Rule 21F-17, which prohibits companies from taking any action to impede whistleblowers from reporting possible securities violations to the SEC. Without admitting or denying the SEC’s charges, KBR agreed to pay a $130,000 penalty and amend the language of the confidentiality agreement. The SEC found no apparent instances in which KBR specifically prevented employees from communicating with the SEC about specific securities law violations.

Misconduct Type
Labor
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Fine
Date of Order
4/1/2015
Contractors Involved Penalty
Total
KBR $130,000
Further Information Released
SEC Order 4/1/2015
SEC Press Release 4/1/2015

Federal Contractor Misconduct Database