GSA Exposes $13 Billion Fraud Involving Federal Contractors
The General Services Administration (GSA) has revealed over $13 billion in suspected fraudulent activities linked to federal contractors.
This large sum marks the highest amount ever reported by the GSA, and the agency indicated that a record number of contractors are implicated, according to an announcement obtained by Breitbart News.
The GSA identified the suspected fraud through a review of government contracting data, public reports, and insights from inspectors general. This initiative kicked off in March, aligning with a broader effort during the Trump administration to combat government fraud.
“Let this serve as a warning to any bad actors thinking of stealing from the federal government: we will catch you, we will work with law enforcement to ensure your arrest, and we will do everything in our power to help recover every dollar you stole,” stated GSA Administrator Edward C. Forst.
Forst highlighted that contractors who falsify records or misrepresent their qualifications are essentially stealing from taxpayers, which adversely impacts legitimate businesses vying for federal contracts.
“Anyone who lies their way into receiving taxpayer dollars is putting their business, their reputation, and their freedom at risk,” he noted.
The review encompasses various aspects including spending related to COVID-19, the Small Business Administration’s 8(a) program, contractor eligibility issues, bid rigging, false cybersecurity claims, bribery, and other forms of contractor misconduct.
The GSA referenced two significant cases to illustrate how procurement fraud affects taxpayers and legitimate contractors. One case involved $73 million tied to contracts designed for service-disabled veteran-owned small businesses and other eligible small businesses.
Broadway Electric Inc. and Cornerstone Contracting Inc., along with their executives, agreed to pay $21.3 million to settle allegations related to the improper acquisition of contracts.
The government claimed that these companies operated through qualified small businesses as middlemen from April 2017 to May 2025 to gain contracts for which they were not rightfully eligible.
The defendants acknowledged that Broadway and Cornerstone managed the identification of contract opportunities, preparation of bids, and selection of subcontractors, while the qualifying small businesses received minimal financial compensation.
Another notable case involves $44 million in suspected fraud concerning Sierra Nevada Company LLC. Sierra Nevada has agreed to pay $7.75 million to resolve allegations connected to Michael Henry, a former government employee associated with Joint Staff/J6.
Officials alleged that Henry worked as a consultant for Sierra Nevada while being involved in three government contracts awarded to the firm, specifically related to the Army, GSA, and U.S. Special Operations Command.
It was alleged that during his government role, Henry evaluated products from Sierra Nevada while simultaneously promoting them as a consultant. In a related matter, Henry pleaded guilty in 2025 to criminal charges concerning personal financial interests.
The GSA plans to forward suspected fraud cases to its Office of Inspector General or the Department of Justice for further investigation.
“Stopping all federal fraud requires the work of every federal agency, and the GSA has more than stepped up to the task,” commented Scott Brady, the executive director of the White House Task Force to Eliminate Fraud.
“Today’s announcement shows just how broken our federal procurement system was before President Donald Trump, Vice President Vance, and Administrator Forst,” Brady added.
