The General Services Administration (GSA) has uncovered more than $13 billion in suspected fraud involving federal contractors.
The suspected fraud involves a record number of contractors and the highest total dollar amount ever identified by the GSA, according to an agency announcement obtained exclusively by Breitbart News.
The administration said it identified the suspected fraud by reviewing government contracting data, public reports, and information from inspectors general. The effort began in March as part of the Trump administration’s government-wide crackdown on 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,” GSA Administrator Edward C. Forst said.
Forst said contractors that falsify records or misrepresent themselves steal from taxpayers and hurt legitimate businesses competing for federal contracts.
“Anyone who lies their way into receiving taxpayer dollars is putting their business, their reputation, and their freedom at risk,” he said.
The review covers COVID-19 spending, the Small Business Administration’s 8(a) program, contractor eligibility, bid rigging, cybersecurity-related false claims, bribery, and other potential contractor misconduct.
The GSA cited two cases to show how procurement fraud affects taxpayers and legitimate federal contractors. One involved $73 million in suspected fraud tied to federal contracts reserved for service-disabled veteran-owned small businesses and other eligible small businesses.
Broadway Electric Inc., Cornerstone Contracting Inc., CEO John Oehler, and President Christian Blake agreed to pay $21.3 million to resolve False Claims Act allegations that they improperly obtained the contracts.
The government alleged that Broadway and Cornerstone used qualified small businesses as pass-through entities between April 2017 and May 2025 to obtain contracts for which they were not eligible.
The defendants admitted that Broadway and Cornerstone identified contract opportunities, prepared and priced bids, secured bonding, chose subcontractors and personnel, and primarily controlled the work and finances. The qualifying small businesses generally received fixed payments equal to between one percent and three percent of the contracts’ values.
Another case involved $44 million in suspected fraud connected to Sierra Nevada Company LLC.
Sierra Nevada agreed to pay $7.75 million to settle allegations involving its employment of Michael Henry, who was then a government employee assigned to Joint Staff/J6.
Federal officials alleged that Henry worked as a Sierra Nevada consultant from July 2019 to June 2020 while participating in three government contracts awarded to the company. The contracts involved the Army, GSA, and U.S. Special Operations Command.
The government alleged that Henry evaluated and obtained approval for Sierra Nevada products in his government role while recommending the company’s products as a consultant. Henry separately pleaded guilty in 2025 to a criminal charge involving acts affecting a personal financial interest.
The GSA said it is referring suspected fraud cases to its Office of Inspector General or the Department of Justice for investigation.
“Stopping all federal fraud requires the work of every federal agency, and the GSA has more than stepped up to the task,” said Scott Brady, 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.