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

Bid Rigging Scandal Hits Berg Companies, Inc.

In a stunning revelation, Berg Companies, Inc., a Spokane-based defense contractor, has agreed to fork over $3.3 million to settle charges of bid rigging in the Defense Logistics Agency (DLA) contracts. The Justice Department’s USAO New Mexico accused the firm of colluding with Improve Group, Inc., and other sub-vendors, leading to fraudulent bids that defrauded the Department of Defense (DoD) customers.

Berg, known for manufacturing rigid wall shelters sold directly to the government, admitted orchestrating inflated quotes to ensure sub-vendor wins at exorbitant prices. The schemes involved 36 solicitations, with two carried out by Improve Group and the rest by a Florida-based sub-vendor.

U.S. Attorney Ryan Ellison emphasized the gravity of such corruption: “Collusion in government contracting erodes public trust and distorts fair competition. This resolution underscores our commitment to protecting taxpayer dollars and ensuring a level playing field.”

The settlement includes Berg’s cooperation with the government, internal investigation, and self-disclosure of an issue previously unknown to authorities.

With Berg now under the Hunter Defense Technologies umbrella, this incident serves as a stark reminder of the integrity issues that can permeate the defense contracting industry.

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