The General Services Administration says it has identified more than $13 billion in suspected fraud involving federal contractors, setting agency records for both the number of contractors flagged and the total dollar amount under scrutiny.
The findings come from a review launched in March as part of the Trump administration’s broader effort to identify fraud involving federal spending. According to a GSA announcement obtained by Breitbart News, investigators examined government contracting data alongside public reports and information supplied by inspectors general.
The scope is extensive. The GSA review covers spending connected to COVID-19, the Small Business Administration’s 8(a) program, contractor eligibility, alleged bid rigging, cybersecurity-related false claims, bribery and other potential misconduct involving federal contracts.
GSA Administrator Edward C. Forst delivered a blunt warning to contractors following the findings.
“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,” Forst said.
Forst argued that procurement fraud does more than cost taxpayers money. When companies falsify records or misrepresent their eligibility to obtain government contracts, he said, legitimate businesses are also placed at a disadvantage.
“Anyone who lies their way into receiving taxpayer dollars is putting their business, their reputation, and their freedom at risk,” he said.
The GSA pointed to specific cases to illustrate the types of conduct being examined.
One involved $73 million in suspected fraud connected to contracts reserved for service-disabled veteran-owned small businesses and other qualifying 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 concerning contracts they allegedly were not eligible to receive.
The government alleged that between April 2017 and May 2025, Broadway and Cornerstone used qualified small businesses as pass-through entities to secure those contracts.
According to the admissions described by the government, Broadway and Cornerstone identified contract opportunities, prepared and priced bids, obtained bonding, selected subcontractors and personnel, and exercised primary control over the work and finances. Meanwhile, the qualifying small businesses generally received fixed payments amounting to between one and three percent of the contracts’ values.
Another case highlighted by the GSA involved $44 million in suspected fraud associated with Sierra Nevada Company LLC.
Sierra Nevada agreed to pay $7.75 million to resolve allegations involving its employment of Michael Henry, who at the time was a federal employee assigned to Joint Staff/J6.
Federal officials alleged that Henry simultaneously worked as a Sierra Nevada consultant from July 2019 through June 2020 and participated in three government contracts awarded to the company. Those contracts involved the Army, GSA and U.S. Special Operations Command.
The allegations presented a significant conflict-of-interest issue: the government said Henry evaluated and obtained approval for Sierra Nevada products as part of his federal duties while also recommending the company’s products in his consulting role.
Henry separately pleaded guilty in 2025 to a criminal charge involving acts affecting a personal financial interest.
The settlements do not account for anything close to the full $13 billion identified in the broader GSA review. The agency describes that larger figure as suspected fraud, meaning the findings still have to go through the appropriate investigative and legal processes rather than being treated as established losses.
The GSA said suspected cases are being referred to either its Office of Inspector General or the Department of Justice for further investigation.
Scott Brady, executive director of the White House Task Force to Eliminate Fraud, credited the agency with taking an active role in the administration’s effort.
“Stopping all federal fraud requires the work of every federal agency, and the GSA has more than stepped up to the task,” Brady said.
“Today’s announcement shows just how broken our federal procurement system was before President Donald Trump, Vice President Vance, and Administrator Forst,” he added.
