Berg Companies, Inc., False Claims Act, Massachusetts 2023

Berg Companies, Inc. Settles False Claims Act Allegations for $3.3 Million

Berg Companies, Inc. (Berg), a defense contractor based in Spokane, Wash., has agreed to pay $3.3 million to resolve allegations that it violated the False Claims Act by submitting, or causing the submission of, false claims under prime vendor contracts with the Defense Logistics Agency (DLA), which the Department of Defense (DoD) uses to purchase goods and services.

According to the settlement agreement, Berg, which manufactures rigid wall shelters and sells them to the federal government, including through various prime vendor programs, coordinated with Noble Sales Co., Inc. d/b/a Noble Supply & Logistics (Noble), a Boston-based prime contractor to DLA for Maintenance, Repair & Operations (MRO) contracts for the European Command, to submit inflated quotes for Berg-made rigid wall shelters. As a result, the military customers were overcharged for the Berg-made rigid wall shelters.

The scheme, which occurred from 2019 to 2021, involved Berg coordinating and submitting inflated quotes on two solicitations for the sale of 10 Berg-made rigid wall shelters that Noble awarded to a New Mexico-based vendor, and 26 solicitations for the purchase of 29 Berg-made rigid wall shelters that Noble awarded to a Florida-based vendor.

Berg cooperated with the government in this matter and acknowledged and accepted responsibility for the facts which form the basis of this settlement.

“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,” said United States Attorney Leah B. Foley. “We commend Berg for cooperating with the government to resolve this matter and taking responsibility for this conduct.”

In related news, Berg was acquired by Hunter Defense Technologies, Inc., a defense contractor based in Solon, Ohio, in September 2019.

The settlement reinforces the government's commitment to using the False Claims Act to pursue anti-competitive fraud and protect taxpayer dollars.

Berg Companies, Inc. is a defense contractor based in Spookane, Wash.

The exact criminal charges against Berg Companies, Inc. are violating the False Claims Act by submitting, or causing the submission of, false claims under prime vendor contracts.

The settlement occurred on March 2023 and Berg Companies, Inc. agreed to pay $3.3 million to resolve the allegations.

Berg Companies, Inc. acknowledged and accepted responsibility for the facts which form the basis of this settlement.

Source: https://www.justice.gov/usao-ma/pr/defense-contractor-berg-co-agrees-pay-33-million-resolve-allegations-causing-fraudulent