Defense Procurement: Ongoing DOD Fraud Risk Assessment Efforts Should Include Contractor Ownership

Abstract

The Department of Defense (DOD) faces several types of financial and nonfinancial fraud and national security risks posed by contractors with opaque ownership. These risks, identified through GAOs review of 32 adjudicated cases, include price inflation through multiple companies owned by the same entity to falsely create the appearance of competition, contractors receiving contracts they were not eligible to receive, and a foreign manufacturer receiving sensitive information or producing faulty equipment through a U.S.-based company. For example, one case involved an ineligible foreign manufacturer that illegally exported sensitive military data and provided defective and nonconforming parts that led to the grounding of at least 47 fighter aircraft, as illustrated below.

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Document Details

Document Type
Technical Report
Publication Date
Nov 01, 2019
Accession Number
AD1152482

Entities

People

  • Colin Fallon
  • Daniel Purdy
  • Daniel Silva
  • Dustin Milne
  • Lauren Ostrander
  • Madeline Messick
  • Maria Mcmullen
  • Marissa Esthimer
  • Mollie Lemon
  • Sabrina Streagle
  • Seto J. Bagdoyan
  • Shana Wallace
  • Tonita Gillich
  • Tracy Abdo

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Commerce
  • Congress
  • Contractors
  • Contracts
  • Data Analysis
  • Department Of Defense
  • Government Procurement
  • Governments
  • Information Systems
  • Law
  • Logistics
  • Management Personnel
  • National Governments
  • National Security
  • Organizational Structure
  • Personnel Management
  • Political Systems
  • Procurement
  • Public Administration
  • Risk
  • Risk Analysis
  • Risk Management
  • Social Media
  • United States Government

Fields of Study

  • Business

Readers

  • Government Contracting/Procurement.
  • Political Violence and Terrorism Studies.
  • Systems Analysis and Design