Surety Bond Quarterly - Fall 2015 - (Page 10)

Practical Insights: What You Need to Know Key Takeaways from the NASBP Federal Construction Contracting Seminar Presented by Peckar & Abramson, P.C. ON JUNE 11, 2015, Adrian Bastianelli, Paul Monte, Michael Zisa, Lori Lange, and Michael Cox of the law firm of Peckar & Abramson, P.C. had the opportunity to meet with members, affiliates, associates, and guests of NASBP at NASBP's Federal Construction Contracting Seminar in Washington, DC. The group spent the day participating in an interactive discussion of recent trends and developments in the federal contractBY MICHAEL C. ZISA ing world-including fraud, the False Claims Act (FCA) and joint venture arrangements-and how these topics impact the surety industry. In addition, Kenneth Dodds of the U.S. Small Business Administration (SBA) spoke about SBA's proposed rule changes affecting contractors, and Jason Powers of the SBA's Inspector General's Office discussed fraud investigations. For those of you who were unable to attend, below is a summary of some of the highlights of the event: Fraud: The new mantra of federal contracting The federal government's prosecution of fraud claims under the FCA continues to increase with total fraud NASBP President Susan Hecker welcomed the Federal Construction Contracting Seminar participants, who participated in an intensive and valuable exploration of the hottest issues in federal contracting. 10 SURETY BOND QUARTERLY | FALL 2015 The seminar speakers included attorneys from the law firm of Peckar & Abramson, from left, Michael Cox (at podium), Mike Zisa, Adrian Bastianelli, Paul Monte, and Lori Ann Lange. collections in 2014 reaching $5.69 billion-several hundred millions of which involved federal procurement fraud. In light of this, the panel discussed what constitutes fraud under the FCA and how contractors, bond producers, and sureties can stay out of trouble. * The FCA prohibits, among other things, a person or company from: (1) Knowingly presenting a false or fraudulent claim for payment or approval; (2) Knowingly making, using, or causing to be made or used a false record or statement material to a false claim; (3) Conspiring to commit a violation; or (4) Knowingly delivering or causing to be delivered less than all of the money or property due the government. * Penalties for violations of the FCA include: (1) civil damages up to three times the government's actual damages, fines of $5,500 to $11,000 per false claim; (2) criminal penalties of up to five years in prison and fines; and (3) administrative penalties including suspension, debarment and contract termination. * C ommon triggers to FCA claims against general contractors include submission of payment applications, certified payrolls, claims, and subcontractor "pass-through" claims that contain false information or certifications. Payment applications are considered a claim under the FCA and are one of the most common sources of FCA claims because they contain several

Table of Contents for the Digital Edition of Surety Bond Quarterly - Fall 2015

2015-2016 Executive Committee
NASBP Upcoming Meetings & Events
From the CEO - Resources: Forms, Opinions & Risk Management Practices
Practical Insights: What You Need to Know - Key Takeaways
Alternative Project Delivery, Alternative Risks
Contractors in a New Age of Product Delivery - Sharing Design Liability
DBIA Releases New Bond Forms for Design-Build Projects
AIA’s New Teaming Agreement: AIA Document C102TM–2015
ConsensusDocs Contracts Help Ensure Smooth Sailing
NASBP’s Seven Virtual Seminars on Leadership
Guidance in Addressing Ethical Dilemmas
Web-Exclusive Features
2015 NASBP Resource Directory
Index to Advertisers

Surety Bond Quarterly - Fall 2015