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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…

Overcharging on Afghanistan Food Supply Contract – Civil Case

Supreme Foodservice GmbH (f/k/a Supreme Foodservice AG) and Supreme Foodservice FZE settled a False Claims Act lawsuit alleging overbilling on a contract to provide food and bottled water to U.S. troops in Afghanistan. The two companies and their parent corporation, Supreme Group B.V., paid $101 million (plus $1,450,000 in legal fees and expenses) to resolve the case. The lawsuit alleged that Supreme Foodservice defrauded the Department of Defense on the Subsistence Prime Vendor contract from approximately 2005 to 2010. Supreme Foodservice allegedly overbilled the government by failing to disclose that a subcontractor used to purchase goods was a wholly owned and controlled subsidiary. The lawsuit also alleged that Supreme Foodservice failed to disclose and pass through to the government rebates and discounts it obtained from its suppliers and charged inflated prices for bottled water and for transport services.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Non-Governmental
Contracting Party
Defense - General
Court Type
Civil
Disposition
Settlement
Date of Settlement Announcement
12/8/2014
Contractors Involved Penalty
Total
Supreme Group Holding SARL $102,450,000
Further Information Released
Settlement Agreement 12/8/2014
Supreme Group Press Release 12/8/2014
U.S. Attorney’s Office Press Release 12/8/2014
Amended Complaint 9/11/2012

See also:

Federal Contractor Misconduct Database