Noble Supply & Logistics, Overcharging, New Mexico 2023

The U.S. Attorney’s Office announced today that it has reached a $1 million settlement with Noble Supply & Logistics, LLC to resolve civil claims related to Noble’s operations under a contract supporting the Contractor Operated Civil Engineer Supply Store at Cannon Air Force Base in New Mexico.

The contract, issued by the Department of the Air Force through the 27th Special Operations Contracting Squadron at Cannon Air Force Base (CAFB), required Noble to provide supplies and materials for upkeep of the base’s infrastructure and civil engineering needs. Under the terms of the agreement, Noble will pay the United States $1,034,495.99, including $250,497.94 in restitution, with interest, in semi-annual installments through January 2028.

The settlement resolves allegations that Noble did violate Air Force contract requirements for pricing and competitive quotes, which resulted in overpayments for certain transactions and violations of the False Claims Act. For items that could be bought from local vendors and suppliers, Noble allegedly gave the Air Force inflated prices and improperly withheld actual local supplier pricing to which CAFB was entitled.

For higher priced items that required competitive quotes, Noble is accused of providing fake, fabricated, or altered vendor quotes and withholding the lowest vendor bids, causing further overpayments. On some occasions, after government contracting officials flagged vendor quotes submitted by Noble as fake or altered, Noble submitted a second round of fake quotes to the government for the same transaction. The government also alleges Noble charged the Air Force extra for shipping when it was already included in the price quoted by the supplying vendor.

The United States alleges that Noble’s corporate leadership had knowledge related to these issues but failed to act; despite multiple discoveries by CAFB contracting officials of apparent misconduct. Noble denies all allegations, and the settlement is not an admission of liability.

“We expect every contractor doing business with the United States to uphold the highest standards of honesty and transparency,” said U.S. Attorney Ryan Ellison. “When those standards are compromised, we will act decisively to safeguard public funds and maintain trust in government operations.”

Defendant: Noble Supply & Logistics, LLC

Criminal Charges: Violating Air Force contract requirements for pricing and competitive quotes, resulting in overpayments and violations of the False Claims Act

City and State: Albuquerque, New Mexico

Exact Date: today

Sentence or Outcome: $1 million settlement, including $250,497.94 in restitution, with interest, in semi-annual installments through January 2028

Dollar Amounts: $1,034,495.99, $250,497.94

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