Contractor pays $7.8M for falsely claiming 8(a) status
Source: FederalTimes, Article written by Aaron Boyd, published July 7, 2015
A government contractor agreed to pay $7.8 million to settle claims it falsely represented itself as a small disadvantaged business, illegally qualifying for federal contracts under the Small Business Administration’s 8(a) program.
LB&B Associates agreed to the multimillion-dollar settlement after two former employees filed suit as whistleblowers under the False Claims Act, stating that the principal, Lily Brandon, was not actually overseeing day-to-day operations.
As part of the 8(a) program, companies managed by socially and economically disadvantaged persons can compete for select set-aside contracts that might have otherwise gone to larger firms. While Brandon qualified under this description, she “allegedly failed to exercise actual control over LB&B’s operations,” according to the Department of Justice.
The LB&B website lists Brandon as honorary chairman of the board. David Van Scoyoc is listed as the company’s chief operating officer.
Read the full story at http://www.federaltimes.com/story/government/acquisition/2015/07/07/lbb-false-claims-settlement/29822105/
For help with Government Contracting: contact your nearest Procurement Technical Assistance Center (PTAC). Funded through Cooperative Agreements between the U.S. Department of Defense and state and local governments/institutions, PTACs provide free and low-cost assistance in virtually all areas of government contracting.