Almost everything the Navy⁄Marine Corps uses is obtained under a contractual agreement between the government and a contractor. This includes anything from the pencils to the newest concepts in tactical gear used by service members in theater. The DON stands to losemillions if not billions of dollars annually due to fraudulent activity committed by individuals and companies that have their own bestinterest in mind. NCIS’s goal is to minimize those losses all whileensuring the safety of service members.

For instance, it is estimated that corporations lose over 7 percent of their yearly budget to fraud. A 7 percent annual loss to DON equates to more than $4.5 billion dollars. This does notinclude the impact it has on mission readiness, the war effort and the overall safety of sailors and Marines. Though not limited to these examples, below are four key categories of fraud and some things that might be a warning sign:

Bribery & Gratuities: Includes offering or accepting something of value in exchange for personal gain or influence.

What to look for: Unexplained wealth of co-workers andsupervisors, lack of documents supporting why a contract was awarded, the same employee writing Justification and Approval and⁄or awarding Sole Source Contracts.

Cost Mischarging: Improper allocation of costs or the charging of allowable costs to a government contract that results in overcharging for goods and services.

What to look for: Duplicate billing for labor and⁄or materials or billing of unincurred costs, contractors passing commercial business expenses to government cost type contracts and continual cost inflation.

Product Substitution: Intentional submission of goods and⁄or services that do not conform to the contract specifications or requirements.

What to look for: Be aware of substandard materials provided⁄used where the government is billed for premium material and false certifications of inspection and testing. Remember, this can affect the safety of our war fighters.

Environmental Crimes: This includes the improper or unlawful discharge, storage, transportation and disposal of hazardous waste or toxic pollutants.

What to look for: Look for fraudulent training certifications, substandard safety equipment or procedures, and hiring individuals whoaccept lower wages and are unaware of safety concerns.

NCIS is asking for everyone’s help in identifying, reporting and preventing fraud.

In an effort to support the Navy and Marine Corps, NCISprovides procurement fraud briefs to area commands andorganizations.

Everyone is the first line of defense, and NCIS is here to assist. If anyone has any information regarding a fraudulent activity or would be interested in a procurement fraud brief, contact theMarine Corps Base Quantico NCIS Office at 703-784-2993. Anonymous reporting of suspicious activities may be made through the NCIS Tip Line at 1-800-264-6485 or by email at ncistipline@ncis.navy.mil.