THREE TAKEAWAYS FROM THE DOJ FALSE CLAIMS ACT REPORT: PERCEPTION DIFFERS FROM REALITY
The most recent Department of Justice False Claims Act report has several takeaways for government contractors, including at least one surprise. It always pays to know what’s happening in the compliance realm and, as a public service, we are happy to provide this overview.
1. DOJ Doesn’t Have to Intervene in an FCA Case For It To Be Successful: Contractors may previously have regarded it as a positive sign that DOJ didn’t intervene in a whistleblower case. If the government wasn’t interested, there must not be too much to it. That was true until 2023 when 16% of non-intervened cases resulted in recoveries. Whether or not DOJ participates, companies need to ensure a robust defense in such situations.
2. DOJ Filed A Record 500 FCA Cases On Its Own in 2023: Not all FCA cases are started by whistleblowers. DOJ filed the highest number of non-whistleblower FCA cases since 1987 in 2023. This should come as no surprise since the agency announced its Procurement Collusion Strike Force just a few years ago. While many of these are in the healthcare arena, no government contractor should have a false sense of security. There is plenty of action in other areas.
3. DOD Acquisition Is a Particular Focus: DOJ obtained a total of $550 million in FCA settlement recoveries in cases involving DOD contractors last year. That’s the highest amount DOJ has secured in over 10 years. Cybersecurity is becoming an area of special focus. In addition, as DOD spending increases, contractors can expect a continued focus from DOJ on making sure that money is spent correctly.
The DOJ’s report gives contractors important insights on where the agency is headed in terms of ensuring compliance. Think of it as a roadmap to help you stay on the right path.