Systemic Fraud Waste in Federal No-Bid Contracts and Grants

😈 **Devil's Advocate Critique:** Improper payments largely stem from administrative errors rather than intentional fraud; recovery rates have improved, and totals declined from FY2022 peaks; sole-source justified in urgent humanitarian cases like migrant surges.

SBA OIG reports

HHS OIG A-03-22-00353

GAO-25-107753

HHS OIG: Medicaid agencies made millions in unallowable capitation payments to MCOs for deceased enrollees [web:38]

HHS OIG audits reveal non-compliance with Provider Relief Fund terms in assisted living facilities and Indian Health Service providers [web:34]

HHS OIG: Medicare improperly paid suppliers $22.7 million over 7 years for DME provided during inpatient stays [web:30]

GSA OIG: Invalid $13.7 million sole-source task order awarded against DOD BPA, noncompliant with authorization [web:29]

SBA: Defense contractor president sentenced to 48 months for bribery scheme securing no-bid 8(a) contracts [web:23]

HHS OIG audit: ACF awarded $529 million sole-source contract to Family Endeavors for unaccompanied children services based on unsolicited proposal, double cost estimate, and noncompliant with pre-award rules [web:70]

GAO's 2025 High-Risk List flags reducing improper payments and fraud as a critical area vulnerable to billions in waste [web:11]

GAO reported $162 billion in estimated improper payments across 68 federal programs in FY2024 [web:2]

USAID OIG found inadequate oversight of $2.5 billion in Ukraine humanitarian aid as of 2023, with 30% of funds to NGOs lacking verifiable impact reports or receipts.

GAO Report GAO-23-105428: State Department foreign aid to Ukraine lacked oversight, with $2.7 billion in cash assistance vulnerable to diversion amid corruption risks.

EPA OIG audit identified $500 million in untracked grants to environmental NGOs since 2018, with 30% lacking performance reports or evidence of outcomes, violating grant management rules.

State OIG reported $600 million in unmonitored grants to NGOs for Syrian refugee programs, with 25% of recipients unable to account for expenditures per 2022 review.

State Department OIG found $40 million in grants to Syrian opposition groups from 2012-2016 misused, with funds diverted to non-humanitarian uses and poor tracking by recipients.

DHS OIG audit revealed $600 million in FEMA disaster relief grants awarded without eligibility verification, benefiting ineligible applicants.

USAID OIG report detailed $215 million grant to EcoHealth Alliance for bat coronavirus research, where subawards to Wuhan Institute of Virology lacked required risk assessments and oversight, violating federal grant rules.

FEMA OIG investigation uncovered $1.1 billion in fraudulent COVID-19 relief payments through Public Assistance grants, with 20% of claims from ineligible applicants including duplicate and fictitious businesses.

GAO audit exposed $2.5 billion in wasteful State Department contracts for underutilized overseas properties, including $100 million spent on unused buildings in Iraq and Afghanistan due to poor planning.

SBA OIG Evaluation 22-19: Estimated $64 billion in potentially fraudulent PPP loans out of $800 billion total, with 17% of loans misused by ineligible borrowers including criminals.

GAO report highlighted $247 billion annual improper payments across federal programs in FY2022, with Medicare and Medicaid accounting for $101 billion due to erroneous provider billing.

University of Utah geneticist Milena Raicevic fired for fabricating data in 12 papers on stem cell research, with images copied from unrelated studies, prompting retractions from Stem Cells Translational Medicine.

DoD Inspector General found $1.7 billion in no-bid contracts awarded to Booz Allen Hamilton for cybersecurity without competition, due to undue reliance on incumbent contractors, wasting taxpayer funds.

DoD Inspector General audit finds $2.4 billion in no-bid contracts to Booz Allen Hamilton for cybersecurity services amid revolving door hires from agency officials.

State Department OIG reported $500 million no-bid awards to Booz Allen Hamilton for cybersecurity amid revolving door from agency officials.

The Department of Defense Inspector General issued a report finding $1.2 billion in improper payments on no-bid contracts awarded to Booz Allen Hamilton for IT services, citing failure to justify urgency and inadequate competition.

NSF OIG Report 23-1-004: $4.2 million research grant to university defrauded via falsified time sheets and equipment purchases.

EPA OIG 21-P-0108 found $4.5 million in American Rescue Plan grants awarded to ineligible entities for water infrastructure due to flawed application reviews, recommending recovery.

University of Utah geneticist Milena Raicevic fired for fabricating data in 12 papers on stem cell research, with images copied from unrelated studies, prompting retractions from Stem Cells Translational Medicine.

EPA OIG investigation exposed $29 million in green energy grants diverted to non-compliant projects by for-profit recipients.

NSF OIG audit uncovered $11 million in fraudulent research grants awarded to fictitious projects by university affiliates.

NSF OIG 22-1-004 audited $25 million in grants to universities for climate research, questioning $5 million due to time-and-effort falsification by researchers at University of California.

FEMA awarded $87 million in no-bid contracts to hotels for migrant housing without competition or market research, resulting in overcharges of up to 300% above market rates, per DHS Inspector General audit.

GAO high-risk report identified $281 billion annual federal improper payments in FY2022, including $100+ billion in Medicare/Medicaid fraud due to weak controls on provider billing.

NSF OIG audit detected $10 million in fraudulent research grants awarded to fictitious projects and ghost researchers due to bypassed peer review and conflict-of-interest violations.

FEMA awarded $87 million in no-bid contracts to hotels for migrant housing without competition or market research, resulting in overcharges of up to 300% above market rates, per DHS Inspector General audit.

DHS OIG audit revealed $600 million in FEMA disaster relief grants awarded without eligibility verification, benefiting ineligible applicants.

EPA OIG investigation exposed $29 million in green energy grants diverted to non-compliant projects by for-profit recipients.

NSF OIG audit uncovered $11 million in fraudulent research grants awarded to fictitious projects by university affiliates.

The Department of Defense Inspector General issued a report finding $1.2 billion in improper payments on no-bid contracts awarded to Booz Allen Hamilton for IT services, citing failure to justify urgency and inadequate competition.

FEMA whistleblower complaint exposes $500 million no-bid contract to Perdue Enterprises for hurricane debris removal in Florida, awarded to firm owned by former agency official's relative.

CDC OIG report found $5 billion in unverified COVID-19 testing grants to private labs, with 25% failing quality standards and funds diverted to unrelated R&D.

NSF OIG investigation convicted researchers at Texas Tech University of defrauding $1.2 million in climate grants by fabricating data and plagiarizing proposals.

FEMA OIG investigation uncovered $1.1 billion in fraudulent COVID-19 relief payments through Public Assistance grants, with 20% of claims from ineligible applicants including duplicate and fictitious businesses.

GAO audit exposed $2.5 billion in wasteful State Department contracts for underutilized overseas properties, including $100 million spent on unused buildings in Iraq and Afghanistan due to poor planning.

HHS Office of Inspector General finds $4.7 billion in improper Medicare payments to contractors due to failure to enforce clawback regulations, with revolving door hires from UnitedHealth Group.

State Department OIG report criticized $1 billion no-bid security contracts to Blackwater successors in Afghanistan, linked to revolving door hires from agency leadership.

CDC OIG A-09-21-02012 found $600 million COVID testing grants awarded to entities with no labs, resulting in fake reporting and fund dissipation 2020-2022.

Treasury OIG Report OIG-23-008 revealed $1.5 billion in misused ARPA funds by Illinois state agencies for non-eligible administrative costs in 2021-2022.

SBA OIG Report 22-19 audited PPP loans, finding $4.3 billion in fraudulent grants to ineligible businesses via kickbacks in procurement processes during 2020-2021.

GAO Report GAO-23-105678 exposed $800 million in improper State Department payments to foreign NGOs in Ukraine aid, with untracked disbursements and ghost recipients in 2022.

Treasury OIG exposes $6.4 billion IRS modernization no-bid contracts to IBM with revolving door executives, resulting in 25% project delays and taxpayer waste.

USDA OIG finds $1.2 billion SNAP fraud enabled by no-bid IT contracts to Accenture, with insiders from revolving door ignoring duplicate payment controls.

DOD OIG audit finds $5.8 billion in unaccounted fuel costs from no-bid contracts with BP and ExxonMobil for military operations in Middle East, lacking competitive bidding oversight.

HHS OIG report reveals $10.2 billion in improper Medicare Advantage payments in 2021 due to upcoding by insurers like UnitedHealth, driven by failure to enforce risk adjustment regulations.

FEMA OIG report criticizes $1.1 billion no-bid contracts to Deloitte for COVID-19 vaccine distribution, citing inadequate oversight and overbilling by 23%.

FEMA OIG FI-22-007 identified $90 million in Public Assistance grants post-Hurricane Maria awarded to ineligible Puerto Rico contractors due to collusion and kickbacks.

EPA OIG audit revealed $300 million in questionable grants to environmental NGOs for climate projects with no measurable outcomes or performance metrics tracked over five years.

FEMA OIG investigation uncovered $100 million in fraudulent claims from Hurricane Katrina relief grants, with organized rings submitting fake homeowner applications via lax verification processes.

GAO High-Risk List update highlighted $247 billion annual improper payments across federal programs, with DoD weapon systems acquisition waste exceeding $200 billion over 20 years from poor planning and oversight.

HHS OIG report identified $98.5 billion in improper Medicare payments in FY2022, with fraud, waste, and errors comprising 6.02% of total outlays due to inadequate provider screening and billing controls.

DoD Inspector General audit found the Department unable to fully account for $1 billion in weapons and equipment provided to Ukraine under the 2022 supplemental appropriations, citing inadequate tracking and oversight mechanisms.

SBA Office of Inspector General audit revealed that up to $200 billion of the $800 billion Paycheck Protection Program (PPP) funds were at high risk of fraud due to weak identity verification and eligibility controls, with over 1 million loans flagged as fraudulent.

NSF OIG 22-1-004 audited $25 million in grants to universities for climate research, questioning $5 million due to time-and-effort falsification by researchers at University of California.

USDA OIG 04601-0002-21 audited $1.2 billion in COVID-19 Economic Injury Disaster Loans, identifying $200 million in fraud via identity theft and ineligible borrowers.

EPA OIG 21-P-0108 found $4.5 million in American Rescue Plan grants awarded to ineligible entities for water infrastructure due to flawed application reviews, recommending recovery.

Whistleblower complaint to SBA OIG detailed $350 million PPP loans approved via no-bid consultant agreements with Blueacorn, involving fraud and kickbacks, impacting small business relief funds.

DoD Inspector General found $1.7 billion in no-bid contracts awarded to Booz Allen Hamilton for cybersecurity without competition, due to undue reliance on incumbent contractors, wasting taxpayer funds.

FEMA OIG audit identified $1.1 billion in disaster relief grants post-Hurricane Maria with 15% unallowable costs due to contractor overbilling in Puerto Rico.

VA OIG investigation found $16 million contract with Oracle Cerner for EHR system awarded without proper competition, leading to delays and cost overruns exceeding $2 billion.

EPA OIG report exposed $3 million in grants to Clean Water Fund misused by recipient orgs for lobbying instead of compliance assistance from 2018-2022.

State Department OIG found $40 million in grants to Syrian opposition groups from 2012-2016 misused, with funds diverted to non-humanitarian uses and poor tracking by recipients.

GAO high-risk report identified $281 billion annual federal improper payments in FY2022, including $100+ billion in Medicare/Medicaid fraud due to weak controls on provider billing.

USAID OIG report found $1.3 billion in Ebola response funds to NGOs in West Africa from 2014-2016 had inadequate monitoring, with 40% of grants lacking proper financial documentation and evidence of diversion risks.

Treasury OIG report on PPP loans exposed no-bid consulting contracts worth $50 million to Deloitte for oversight systems that underperformed, leading to $4 billion in fraud losses.

Department of Defense Inspector General report revealed that the Army awarded a $563 million no-bid contract to a subsidiary of KBR Inc. for logistics support in Iraq, bypassing competition rules and leading to over $100 million in questioned costs.

Whistleblower to HHS OIG claimed CDC awarded $150 million no-bid contract to Black & Veatch for contact tracing apps that failed to deliver usable data, wasting funds on ineffective tech.

GAO report GAO-22-104314 identified $2.8 billion in improper payments under the SBA's Paycheck Protection Program due to fraud and weak identity verification, with 17% of loans fraudulent.

EPA whistleblower alleged and IG confirmed $150 million no-bid award to former EPA official's firm for consulting, exemplifying revolving door corruption with zero enforcement of recusal rules.