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Fraud Alert: Contractors Disclose Violations to the OIG

Fraud alert poster

 

Fraud Alert 

The U.S. Environmental Protection Agency Office of Inspector General is issuing this fraud alert to highlight statutory and regulatory requirements for entities that have contracts with the EPA. Any contractor with the EPA must understand and adhere to requirements to report suspected fraud and other improper conduct to the OIG and must provide information regarding these requirements to their employees. 

The Federal Acquisition Regulation and the EPA Acquisition Regulation set forth requirements for EPA acquisitions and contractors. 

  • All government contractors must conduct themselves with the highest degree of integrity and honesty, pursuant to 48 C.F.R. § 3.1002. 
  • Depending on the value and the length of the performance period of your contract, contractors may be subject to the Contractor Code of Business Ethics and Conduct, which requires contractors to disclose to the OIG, in a timely manner and in writing, credible evidence of violations of federal criminal law involving fraud, conflict of interest, bribery, or gratuity violations, or a violation of the civil False Claims Act. These mandatory disclosures can be made through the EPA OIG website. See 48 C.F.R. §§ 3.1004, 52.203-13, d. 
  • Regardless of whether a contract with the EPA includes the Contractor Code of Business Ethics and Conduct, a contractor may be suspended or debarred for knowingly failing to disclose to the government in a timely manner credible evidence of the statutory violations listed above as set forth in 48 C.F.R. § 3.1003. 
  • If the value of the EPA contract exceeds $1 million and the contractor does not already have an established mechanism in place for their employees to report suspected improper conduct, they must prominently display the EPA OIG Hotline poster in all contractor facilities where contract work is performed. See 48 C.F.R. §§ 1503.1004 and 1552.203-71 for more information. 

In addition, the Anti-Kickback Act of 1986 establishes that a person may not provide or accept, or attempt to provide or accept, a kickback. Pursuant to 48 C.F.R. §§ 3.502-3 and 52.203-7, for contracts exceeding $150,000, a federal contractor must provide prompt notice, in writing, to the OIG or the U.S. attorney general if the contractor has reasonable grounds to believe that there has been a violation of the Anti-Kickback Act. 

Whistleblower protections established by 41 U.S.C. § 4712 provide that an employee of a contractor may not be discharged, demoted, or otherwise discriminated against as reprisal for disclosing information to an OIG related to the contract that the employee reasonably believes is evidence of gross mismanagement or waste of federal funds; an abuse of authority or a violation or law, rule, or regulation; or a substantial and specific danger to public health or safety. Furthermore, pursuant to 48 C.F.R. §§ 3.906 and 52.203-17, contractors must inform their employees, in writing in the predominant language of the workforce or organization, of employee whistleblower rights and protections under 41 U.S.C. § 4712. 

The OIG has identified 2024 as its “Year of Fighting Fraud.” We encourage all contractors to report any suspected fraudulent or improper conduct relating to EPA contracts. Contact the OIG Hotline through our online form or at OIG.Hotline@epa.gov or (888) 546-8740. The OIG will protect the confidentiality of complainants to the maximum extent permitted by law.