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GSA Uncovers $1.2 Billion in Suspected COVID Contract Fraud

Federal agencies identified improper payments across five government contracts years after the pandemic emergency ended.

YJ
Young Jang
Source: This report is based on an official public release from General Services Administration. PULSE organizes and summarizes public government communications.

The General Services Administration has identified more than $1.2 billion in suspected fraud across five COVID-related contracts, the agency said. The findings were made in collaboration with the Department of Health and Human Services under a White House task force focused on eliminating government fraud.

Although the COVID-19 national emergency ended in 2023 and related federal acquisition flexibilities were canceled that year, certain federal contractors continued to receive funds from the agreements, according to the GSA. The same contracts also generated an additional $41 million in improper payments that have since been stopped, the agency said.

"The COVID emergency ended in 2023. The emergency contract advantage didn't — until now," said Scott Brady, executive director of the White House Task Force to Eliminate Fraud. "GSA's review uncovered $1.22 billion in suspected fraud and stopped $41 million more across five HHS COVID-era contracts that kept the emergency label alive long after the emergency was gone."

The GSA said it will refer suspected fraud to law enforcement and work to recover the funds.

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