Berg Companies, Inc. has agreed to a $3.3 million settlement to resolve allegations of violating the False Claims Act by submitting false claims under prime vendor contracts with the Defense Logistics Agency (DLA). The company, based in Spokane, Washington, was acquired by Hunter Defense Technologies in 2019.
The allegations involve Berg’s coordination with Noble Sales Co., Inc., a Boston-based contractor for DLA’s Maintenance, Repair & Operations contracts. From 2019 to 2021, Berg reportedly coordinated with Noble and other vendors to submit inflated quotes for rigid wall shelters, resulting in overcharges to military customers.
United States Attorney Leah B. Foley stated: “As evidenced in this settlement agreement, these contractors manipulated and undermined the fair and open bidding process designed to save our military and taxpayers money.” She acknowledged Berg’s cooperation with the government.
Assistant Attorney General Brett Shumate commented on the risk of purchasing inferior products at high prices due to bid rigging: “This settlement reinforces the Department’s commitment in using the FCA to pursue anti-competitive fraud.”
U.S. Attorney Ryan Ellison emphasized that such conduct distorts competition and drives up costs: “Collusion in government contracting erodes public trust… This resolution demonstrates our unwavering commitment to protecting taxpayer dollars.”
Chad Gosch from the Defense Criminal Investigative Service highlighted their dedication: “DCIS will use all available resources to hold accountable those who betray the trust of the American taxpayer by corrupting the DoD procurement system for personal gain.”
Joseph Dattoria from U.S. General Services Administration also affirmed their stance against concealing information affecting government contracts.
The announcement involved several officials including U.S. Attorney Foley; AAG Shumate; D-NM USA Ellison; DCIS Southwest Acting SAC Gosch; GSA-OIG SAC Dattoria; along with Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross.
