Major Fraud Act and False and Fraud Statement Act

A contractor receives an un-priced change order on a $500,000 fixed price contract. The contractor incurs $50,000 in additional labor costs in performing the change. In its request for equitable adjustment, the contractor “pads” the claim and requests to be reimbursed for $60,000 in additional labor. To support its claim, the contractor includes records purporting to document the extra $10,000 worth of hours worked, but these extra hours were actually spent on a different contractual effort unrelated to the contract for which an adjustment is sought. What statute has the contractor violated? [Personal note: I think it is between ‘B’ & ‘D’, but I seem to favor ‘D’…please assist]

A) Sherman Anti-Trust Act

B) Major Fraud Act

C) Bribery of Public Officials

D) Fraud and False Statements Act


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