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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

U.S. ex rel. Fulk v. UPS (Package Delivery Contract False Claims)

United Parcel Service paid the federal government $25 million and nearly $5 million to several states and localities to resolve allegations that it submitted false claims in connection with the delivery of Next Day Air overnight packages. UPS provides delivery services to local, state, and federal agencies through contracts under which UPS guarantees delivery of packages by certain specified times the following day. The lawsuit alleged that, from 2004 to 2014, UPS engaged in practices that concealed its failure to comply with its delivery guarantees, thereby depriving its customers of the ability to request refunds for the late delivery of packages. In particular, the lawsuit alleged that UPS knowingly recorded inaccurate delivery times on packages to make it appear that the packages were delivered on time, applied inapplicable “exception codes” to excuse late delivery (such as “security delay,” “customer not in,” or “business closed”), and provided inaccurate “on-time” performance data.

Misconduct Type
Government Contract Fraud
Enforcement Agency
Multiple Agencies
Contracting Party
Multiple Agencies
Court Type
Civil
Disposition
Settlement
Date of First Settlement Announcement
5/19/2015
Contractors Involved Penalty
Total
United Parcel Service, Inc. $29,940,000
Further Information Released
Law Firm Press Release 10/7/2015
UPS Statement to POGO 5/27/2015
DOJ Press Release 5/19/2015
Complaint 8/19/2011

Federal Contractor Misconduct Database