Please use this identifier to cite or link to this item:
Title: Fraud in the DoD: Is the Current Fraud Penalty System an Effective Deterrence Tool?
Authors: Gerald McLaughlin
Mike Rowe
Keywords: DoD
Procurement Fraud
Fraud Penalties
Fraud Cases
Penalty Effectiveness
Issue Date: 13-May-2020
Publisher: Acquisition Research Program
Citation: Published--Unlimited Distribution
Series/Report no.: Fraud against the Department of Defense (DOD);SYM-AM-20-136
Abstract: The purpose of this research is to assess the relationship between fraud penalties levied by the Department of Justice (DOJ) against defense contractors (firms) that commit fraud against the Department of Defense (DOD) and the effect of those penalties on future fraud recidivism. Using hand-collected historical data related to fraud committed against the DOD, we find a total of 511 fraud cases and $13.5 billion in fines between 1995 and 2018. An estimated regression model is used to analyze the relationship between fraud penalties and fraud occurrences. Multiple specifications of our model show little to no relationship between DOD- and DOJ-imposed fines and subsequent contractor fraud commission. Given the magnitude of resources deployed for setting and enforcing fines and penalties, the DOD should consider employing alternative tools to encourage compliance with procurement laws and discourage contractor fraud.
Description: Acquisition Management / Defense Acquisition Community Contributor
Appears in Collections:Annual Acquisition Research Symposium Proceedings & Presentations

Files in This Item:
File Description SizeFormat 
SYM-AM-20-136.pdf231 kBAdobe PDFView/Open

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.