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Freedom251 › Blog › federal contracts

How to Report Suspected Fraud or Waste in a U.S. Federal Contract

By Freedom251 Team · · 4 min read

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For a suspected problem with a U.S. federal contract, start with the Inspector General (IG) for the agency that awarded or manages it. If you cannot identify the agency, or the concern spans federal funds, submit it to the U.S. Government Accountability Office’s (GAO) FraudNet, which can refer allegations to the appropriate agency. Suspected criminal conduct can also be reported to the FBI. These channels serve different purposes; a False Claims Act lawsuit is a separate legal process, not a hotline report.

How do I report suspected fraud or waste in a government contract?

  1. Identify the agency responsible for the contract. The IG for that agency is generally the direct reporting route. Use the [Council of the Inspectors General on Integrity and Efficiency (CIGIE) directory] to find the relevant office and follow its current hotline or complaint instructions. The Department of Justice (DOJ) IG handles concerns involving DOJ employees, programs, contracts, and grants—not contracts administered by other departments. DOJ says every federal agency has an IG whose duties include investigating fraud against that agency. DOJ reporting guidance.
  2. Use GAO FraudNet if the agency is unclear or the concern involves federal funds more broadly. Submit a report through the GAO FraudNet website, or call 1-800-424-5454. GAO says it may refer reports to federal, state, or local agencies; it does not independently investigate complaints at an individual reporter’s request. Online submissions are encouraged for a timelier response. FraudNet permits anonymous reports and assigns a unique control number for follow-up. Its website cannot accept classified information.
  3. Report suspected criminal fraud to the FBI as an additional route. DOJ points to the FBI’s tips and leads page and local FBI offices for general fraud and other criminal matters. For cyber-enabled crime, DOJ identifies the Internet Crime Complaint Center. Choose a route that fits both the suspected conduct and the federal entity involved. DOJ reporting guidance.
  4. Consider a qui tam lawsuit only as a separate legal option. A person with knowledge of fraud against the federal government may be able to bring a False Claims Act qui tam case in federal court. DOJ notes that the case must be filed under seal and has other procedural requirements; many individuals obtain legal counsel. A hotline submission does not initiate this court action, and these reporting routes do not establish whether particular facts qualify. DOJ reporting guidance.

Which reporting route fits the concern?

Route Best fit What to expect
Agency Inspector General A concern about a particular agency’s contract, program, or funds Direct agency reporting route; follow that IG’s complaint instructions. DOJ; CIGIE.
GAO FraudNet Suspected fraud, waste, abuse, or mismanagement involving federal funds, especially when the right agency is uncertain GAO may refer the allegation; it does not promise to investigate an individual complaint itself. Anonymous reports are accepted. GAO FraudNet.
FBI Suspected criminal fraud or other criminal conduct DOJ identifies FBI tips and local offices; cyber-enabled crime can be reported to the Internet Crime Complaint Center. DOJ.
False Claims Act qui tam case A person considering a court action over fraud against the federal government A formal federal-court process with requirements including filing under seal; legal counsel may be appropriate. DOJ.

What should a report include?

Explain what you observed and why it raises a concern. Clear, factual details help an office understand the allegation and determine where it belongs. Where possible, identify:

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  • The contract, agency, program, or federal funds involved.
  • What happened, and when and where it occurred.
  • Who may have been involved, distinguishing what you directly observed from what you have inferred.
  • Records or other information that may help explain the concern.

Preserve relevant records you already have lawful access to, and follow the receiving office’s instructions for submitting them. Do not access, take, or transmit materials unlawfully. Do not submit classified material through GAO FraudNet’s website; GAO says it cannot accept it online. If you report anonymously to FraudNet, GAO says it will not contact you about the allegation or any action taken. GAO FraudNet.

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What if I work for the contractor or a subcontractor?

Federal Acquisition Regulation (FAR) 3.903 prohibits reprisal against a contractor or subcontractor employee for a qualifying disclosure. The information must be something the employee reasonably believes evidences one of the following:

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  • Abuse of authority relating to a federal contract.
  • A substantial and specific danger to public health or safety.
  • A related violation of law, rule, or regulation.

The regulation lists several protected recipients, including an Inspector General, GAO, a Member of Congress or committee representative, a federal employee responsible for contract oversight or management, an authorized DOJ or other law-enforcement official, a court or grand jury, and a contractor or subcontractor management official responsible for addressing misconduct. Read FAR 3.903 for the rule.

Reporting alleged reprisal

An employee who believes they experienced prohibited reprisal may file a complaint with the IG of the agency concerned. FAR 3.904 states that a complaint under 41 U.S.C. 4712 may not be brought more than three years after the alleged reprisal. Check the current instructions of the relevant IG promptly; the three-year limit concerns a reprisal complaint, not a general deadline for reporting suspected contract fraud. FAR 3.904.

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How common are GAO referrals?

GAO reported that it processed more than 10,000 complaints and referred 1,239 to other agencies in fiscal year 2022. These are historical FY2022 figures reported in a GAO publication dated September 12, 2023—not a current annual total or an estimate of how any individual report will be handled. GAO report.

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