A Survey of State Practices for Protecting Transportation Agencies Against Construction and Disadvantaged Business Enterprise Fraud Including Use of Contractor Suspension and Debarment Procedures (2007)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

APPENDIX A FALSE CLAIMS SURVEY Transportation Research Board PROTECTING TRANSPORTATION AGENCIES AGAINST CONSTRUCTION CONTRACT AND DISADVANTAGED BUSINESS ENTERPRISE FRAUD A Survey of State Practices False Claims Survey June 2005 Williams, Wilson, and Sexton, P.A. Attorneys At Law A-1

A-2 Introduction This survey investigates False Claims in State Department(s) of Transportation construction projects. Although the extent of false claims in construction projects has not been quantified, the potential for abuse in transportation projects has been recognized due to multi-million dollar judgments for false claim abuses. It is our intent to compile and compare state practices regarding false claims, and to prepare a report. Instructions We request this survey to be completed and returned to the following address: NCHRP 20-6, Study Topic 13-1 Attn: James E. Saunders, III Williams Wilson & Sexton, P.A. 110 E. Broward Boulevard Suite 1700 Fort Lauderdale, FL 33301 If you have any questions or need any assistance, please feel free to contact by email: Thornton Williams, tjwilliams@twalaw.com or James Saunders, jsaunders@twalaw.com,. You may also contact them directly by phone at (850) 224-3999 and (954) 315-3900 respectively. Timeline for Study Throughout this survey, you will be asked to provide numerical data for the last five fiscal years (2000-2004). We realize that there are differences in the federal, state, and individual agency fiscal years. Please indicate the beginning and end of the fiscal year that would be easiest for you to document in this survey (example: Federal FY is October 1 to September 30).____________________________________ _______________________________________ _______________________________________ Please use the indicated fiscal year throughout the Survey. Biographic Information Please provide the following information for the person(s) that will act as a contact person(s) in your agency. (Note: This is not necessarily the person who is completing the survey). Name__________________________________ Title___________________________________ Office Address __________________________ _______________________________________ _______________________________________ Office Phone____________________________ Email Address___________________________ Name__________________________________ Title___________________________________ Office Address __________________________ _______________________________________ _______________________________________ Office Phone____________________________ Email Address___________________________

A-3 1. Is there a state statute(s) that is used as a basis for prosecution of a false claim in construction project in your state? Yes No If yes, please indicate the statute(s)___________ _______________________________________ _______________________________________ _______________________________________ 2. Was there a need identified, study presented, or abuse detected that resulted in the implementation of this state statute? ** Yes No If yes, please identify the need, study, or abuse. _______________________________________ _______________________________________ _______________________________________ **Please attach any documentation available that may illustrate a reason for the implementation of this statute. _______________________________________ 3. Are there any cases that have arisen in your state that are commonly used as precedent to prosecute false claim actions? Yes No If yes, please identify the case(s)_____________ _______________________________________ _______________________________________ _______________________________________ 4. Has your state relied on 31 USC §3729 for prosecution of false claims in Department of Transportation construction projects?** Yes No If yes, has your state relied on the U.S. Attorneys office for help in prosecution of false claims under 31 USC §3729? Yes No False Claims Survey If yes, please explain your interaction with the U.S. Attorneys office______________________ _______________________________________ _______________________________________ _______________________________________ **Please attach any documentation that may illustrate your state’s interaction with the U.S. Attorneys Office. 5. Please summarize the process that is used to handle false claims in construction projects by listing the steps. Step 1:_________________________________ _______________________________________ Step 2:_________________________________ _______________________________________ Step 3:_________________________________ _______________________________________ Step 4:_________________________________ _______________________________________ Step 5:_________________________________ Step 6:_________________________________ _______________________________________ Step 7:_________________________________ _______________________________________ Step 8:_________________________________ _______________________________________ Step 9:_________________________________ _______________________________________ Step 10:________________________________ _______________________________________ 6. Please explain the procedures that are in place to detect and investigate false claims in construction contracts._____________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________

7. Please provide any legal devices, tactics, and techniques, used to prosecute contractors for false claims in construction contracts._________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 8. Please provide a summary of significant false claims abuses in construction contracts that have been detected in your state. (Please include dollar amounts if available). _________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 9. Please complete the following chart for FY 2000-2004 (If none enter 0)(Distinguish between civil and criminal prosecutions): 10. What improvements to your fraud prevention protocols have you determined (if any) are necessary? __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ ________________________ 11. If you have not implemented these improvements, what has prevented you from implementing them? ______________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ ___________________________ 12. Are there any recommendations you would make to improve this area that have not been addressed in the above sections? Yes No If yes, please explain your recommendations. __________________________________________ __________________________________________ __________________________________________ __________________________________________ ___________________________ FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 Overall Number of construction contracts Overall Dollar Value of construction contracts Overall Number of construction contracts where abuses were detected Overall Dollar Value of construction contracts where abuses were detected Overall Number of successful prosecution of abuse claims in construction contracts Overall Dollar Value of successful prosecution of abuse claims in construction contracts Overall Dollar Value of Litigation expenses to prosecute false claims. A-4

13. What financial resources have been received from the Federal Highway Administration for designing and planning transportation projects within your state? Please describe the specific projects funded and the dollar amount of funding. ________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ ___________________________ 14. What percentage of your projects matched or came in under their project cost estimates? What percentage of your projects exceeded their project cost estimates? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 15. What percentage of your current projects are on time? What percentage of your current projects are delayed? If delayed, on what basis? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 16. Please indicate the number of employees and their respective titles or independent contractors responsible for monitoring progress on a transportation project? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 17. How many projects are incomplete due to delay? How many projects are incomplete due to cancellation? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 18. How are financial invoices processed for payment? What support documentation is required? What personnel is required to process such documentation? How many personnel in that capacity to monitor invoices? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 19. Do you possess a copy of USDOT’s Construction Program Management and Inspection Guide? Which sections of the guide have you implemented? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 20. Does your staff meet with other federal and state agencies to discuss project costs, schedules, status and quality issues? If so, how often and on what type of projects? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 21. Have you litigated any false claims actions in your state? If so, did the relief include suspension or debarment? Did relief include monetary penalties? If so, please list the number of cases litigated, the number of subsequent suspensions and/or debarments, and the monetary penalties awarded. _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ 22. In any false claim action, did your state share in the monetary recovery? _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ A-5

23. How many false claim cases were filed? By whom? Please distinguish whether the cases were filed in state or federal court or other forum. _______________________________________ _______________________________________ _______________________________________ _______________________________________ _______________________________________ A-4