Working on federal and local governmental projects requires that contractors include minorities, woman-owned, or Disadvantaged Business Enterprise firms on their teams either as subs, vendors, suppliers or consultants. The guidelines also require that those amounts be stated in the bidding process and in the reporting process during the construction of the project as well as the final accounting to the public.
Some contractors and owners, in an effort to bypass the guidelines, have found creative ways to accomplish the goals that they have to meet in their bids by defrauding the system and the firms that the MBE and DBE programs set out to help.
We have seen these fraudulent moves for decades. First it was out and out bribes such as, “We’ll include you on the team, pay you a fee and you won’t do a thing,” or “You will need to pay my cousin a fee of x to represent you on this project.” Read more » about It’s Still Fraud Maude!