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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…

Overstating Revenues on Canadian Contract

The U.S. Securities and Exchange Commission (SEC) charged KBR with inflating a key, non-financial statement performance metric known as work in backlog, which informs investors of the amount of revenue a company expects to receive in the future on contracts. According to the SEC, in the second quarter of 2012, KBR improperly included $459 million in its publicly disclosed backlog for a pipe fabrication and modular assembly contract with a Canadian energy company, even though KBR had not actually received—and the counterparty was not obligated to provide—any orders under the contract. The SEC found KBR continued to overstate its backlog for almost two years. KBR agreed to pay a $2.5 million penalty to settle the SEC’s charges.

Misconduct Type
Securities
Enforcement Agency
SEC
Contracting Party
None
Court Type
Administrative
Disposition
Settlement
Date of Order
7/2/2018
Contractors Involved Penalty
Total
KBR $2,500,000
Further Information Released
SEC Order 7/2/2018
SEC Press Release 7/2/2018

Federal Contractor Misconduct Database