ABSTRACT
This chapter describes many of the schemes utilized by contractors and vendors to commit fraud after they are awarded contracts. Some vendors intentionally ship less than what the customers order with the hope that the shortages will not be detected. Worse than short shipments are ghost shipments, in which vendors do not ship anything at all to the customer except an invoice indicating that they did ship the ordered items. Some vendors may intentionally ship the wrong items to customers knowing that if they get caught they will have a plausible explanation. Some vendors might ship and invoice for items that the customer never ordered. Some vendors may cut corners and/or use lesser grade materials in an effort to save money. In federal procurements, some contracts require items, or a high percentage of the items and/or components, to be made in America. To save money, some contractors intentionally violate this requirement by using non-approved foreign-made goods or components.
