Berg Companies, Inc., a Spokane-based manufacturer of rigid wall shelters, has agreed to pay $3.3 million to resolve allegations of submitting false claims under prime vendor contracts with the Defense Logistics Agency (DLA). The company admitted to coordinating with Noble Sales Co., Inc., a Boston-based contractor, and other vendors to submit inflated quotes for products sold to the federal government.
The settlement follows an investigation into Berg’s practices from 2019 to 2021, during which the company allegedly manipulated bids for military contracts, resulting in overcharges for the Department of Defense. The United States contends that these actions violated the False Claims Act by undermining competitive bidding processes required by contract terms.
United States Attorney Leah B. Foley stated: “As evidenced in this settlement agreement, these contractors manipulated and undermined the fair and open bidding process designed to save our military and taxpayers money.” She commended Berg for cooperating with authorities.
Assistant Attorney General Brett Shumate remarked on the importance of maintaining competition in government contracting: “Bid rigging of this type inhibits competition on the products and on prices, thereby creating the risk that the government is purchasing inferior products at exorbitant prices.”
U.S. Attorney Ryan Ellison emphasized the impact of such collusion: “Collusion in government contracting erodes public trust, distorts fair competition, and drives up costs for taxpayers and service members.”
Chad Gosch from the Defense Criminal Investigative Service reiterated their commitment to integrity in defense contracting: “DCIS will use all available resources to hold accountable those who betray the trust of the American taxpayer by corrupting the DoD procurement system for personal gain.”
Joseph Dattoria from GSA OIG added: “GSA OIG will continue to work with its investigative partners to hold government contractors accountable for concealing relevant information that may affect the award or performance of government contracts.”
The announcement was made jointly by several U.S. Attorneys and law enforcement officials involved in resolving this matter.
