Contract and Procurement Fraud

Overview

This session will focus on the most common types of fraud in the procurement and contracting arena, with a focus on fraud in construction.  The session will examine fraud vulnerabilities in the four key phases of the procurement process:

• Presolicitation.
• Negotiation.
• Performance.
• Closeout and Claims. 

Within each phase, “red flags” will be discussed.  These are the indicia of possible fraud that managers should be alert for.  Also, within each phase, the most common fraud schemes will be highlighted and discussed.  Finally, the session will describe the generally accepted safeguards or controls that should be established to prevent the various fraud schemes that can occur.  This part of the program will make extensive use of actual fraud case studies designed to demonstrate fraud risks and fraud detection strategies.

Prerequisites

None

Objectives

• The major procurement phases
• Major procurement fraud schemes and red flags
• Procurement fraud safeguards and controls
• Contract and procurement fraud case studies

Highlights

• Procurement phases
• Fraud schemes
• Fraud red flags
• Fraud control activities and safeguards