Contract and Procurement Fraud

The 12 Red Flags of Contract and Procurement Fraud

  1. Repeated awards to the same company.
  2. Competitive bidder complaints and protests.
  3. Complaints about quality and quantity.
  4. Multiple contracts awarded below the competitive threshold.
  5. Abnormal bid patterns.
  6. Agent fees.
  7. Questionable bidders.
  8. Awards to non-lowest bidder.
  9. Contract scope changes.
  10. Numerous post-award contract change orders.
  11. Urgent need or sole source.
  12. Questionable minority or disabled ownership.

Behavioral Red Flags of Fraud Perpetrators

Below are the top behavioral red flags of fraud perpetrators, ranked from highest to lowest:

  1. Living beyond means
  2. Having financial difficulties
  3. Having an unusually close relationship with a vendor or customer
  4. Having control issues and an unwillingness to share duties
  5. Having divorce or family issues
  6. Having a wheeler-dealer attitude
  7. Being irritable, suspicious or having  a defensive attitude
  8. Having addiction problems
  9. Having a history of employment problems
  10. Constant complaints of inadequate pay
  11. Refusing to take vacations
  12. Having a history of legal problems
  13. Experiencing excessive pressure for success