Federal Circuit Court Rejects Claim That Contractor Violated The False Claims Act By Allegedly Submitting A Fraudulently Low Bid With The Intent Of Later Making Up For The Loss By Submitting Change Orders For Extra Work
United States ex. rel. Bettis v. Odebrecht Contractors of California, Inc.
393 F.3d 1321 (D.C. Cir. 2005)
A contractor entered into a contract with the Army Corp of Engineers for construction of the Seven Oaks Dam in San Bernardino County, California. The plaintiff was an alleged "whistleblower" who worked for one of the contractor's consultants. Plaintiff alleged the contractor had violated the federal False Claims Act ("FCA") by fraudulently inducing the government to enter into the contract by knowingly submitting a bid that was too low, with the intent of later making up for the loss by requesting change orders for extra work.
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