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GAO: Use of Leading Practices Could Help Manage the Risk of Fraud and Other Improper Payments

May 1, 2017

Pursuit's Take

 

Over the past decade, incidents of fraud by DOE contractors have occurred. From 2003 through 2008, employees of one contractor at DOE’s Hanford site in Washington state made hundreds of fraudulent purchases and solicited and received kickbacks. In another case, Hanford contractors agreed to pay a combined $125 million to settle disputed claims regarding federal dollars spent on nonnuclear-compliant parts. To help federal program managers combat fraud, in July 2015, GAO issued leading practices for managing fraud risks.

DOE’s inadequate management and oversight of its contractors led GAO to designate its contract management as a High Risk area. Report.

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