A large business has agreed to pay $1.1 million to resolve allegations that it created a “front company” to be awarded a SDVOSB set-aside contract–and then served as a “pass through” by performing the work itself.
In addition to the $1.1 million penalty agreed to by the large contractor, the putative SDVOSB has agreed to pay the government $50,000, plus five annual contingency payments equal to one percent of its total annual revenues.
According to a Department of Justice press release, the government alleged that W.G. Mills Incorporated created a company called Veterans Constructors Incorporated to pursue SDVOSB set-aside contracts. The government alleged that “W.G. Mills created VCI merely as a contracting vehicle and . . . VCI’s affiliation with W.G. Mills rendered it ineligible to be awarded set-aside contracts for SDVOSBs.”
Keep reading this article at: http://smallgovcon.com/service-disabled-veteran-owned-small-businesses/sdvosb-fraud-large-business-pays-1-1-million/
