Berg Co. Hit with $3.3M Fine for Bid Rigging on Defense Contracts

ALBUQUERQUE – In a stunning reversal of fortune for Berg Companies, Inc., the Spokane, Washington-based defense contractor has agreed to cough up $3,300,000 to settle allegations that it violated the False Claims Act by engaging in bid rigging on Defense Logistics Agency (DLA) contracts. The Albuquerque-based Improve Group, Inc., and two other sub-vendors were implicated in the conspiracy.

Berg, known for manufacturing rigid wall shelters, was acquired by Hunter Defense Technologies, Inc. (HDT), in 2019. The company’s alleged scheme spanned from 2019 to 2021, affecting DLA’s Maintenance, Repair, and Operations (MRO) prime vendor contracts for the European Command.

According to the U.S. Attorney’s Office for the District of New Mexico, Berg colluded with the prime vendor and sub-vendors, including Improve Group, to submit fraudulent bids for rigid wall shelters. The inflated quotes led to higher costs for military customers in Europe.

In one instance, Berg admitted submitting inflated quotes on two solicitations worth 10 shelters awarded to Improve Group. Another scheme involved 26 solicitations totaling 29 shelters, awarded to a sub-vendor in Palm Beach Gardens, Florida.

U.S. Attorney Ryan Ellison emphasized the gravity of such offenses, stating, “Collusion in government contracting erodes public trust and distorts fair competition. This resolution demonstrates our unwavering commitment to protecting taxpayer dollars.”

Berg’s cooperation with the government, including internal investigations and self-disclosure of an issue unknown to authorities, earned it some leniency under Department of Justice guidelines.

RELATED: Berg Co. Pleads Guilty to $3.3M Bid Rigging Scandal

RELATED: Berg Co. Pays $3.3M in Bid-Rigging Scheme