33.209
Suspected fraudulent claims
If a contractor's claim appears fraudulent or unsupported due to misrepresentation, the contracting officer must refer it for agency fraud investigation.
Overview
FAR 33.209 addresses the procedures contracting officers must follow when a contractor submits a claim that cannot be substantiated, and there is evidence suggesting the lack of support is due to misrepresentation or fraud. The regulation requires the contracting officer to refer such matters to the agency official responsible for investigating fraud, ensuring that potential fraudulent activities are properly escalated and investigated within the agency. This section is a safeguard to maintain integrity in the claims process and to deter fraudulent behavior by contractors.
Key Rules
- Referral of Suspected Fraudulent Claims
- If a contractor cannot support a claim and there is evidence of misrepresentation or fraud, the contracting officer must refer the case to the agency's fraud investigation official.
- Responsibility to Investigate
- The agency is responsible for investigating suspected fraudulent claims once referred by the contracting officer.
Responsibilities
- Contracting Officers: Must refer unsupported claims with evidence of fraud or misrepresentation to the appropriate agency official.
- Contractors: Must ensure all claims are accurate, truthful, and fully supported by documentation.
- Agencies: Must investigate referred cases of suspected fraud and take appropriate action.
Practical Implications
- This section exists to protect the government from fraudulent claims and to ensure accountability in the contracting process.
- Contractors must maintain thorough documentation and avoid any misrepresentation in claims.
- Failure to comply can result in criminal or civil penalties, contract termination, and debarment.