According to the DoD Inspector General, the following are general fraud indicators that relate direct to defective pricing reviews and should be considered for referral for criminal investigation.
- High incidence of defective pricing.
- Repeated defective pricing involving similar patterns or conditions.
- Continued failure or refusal to correct known system deficiencies.
- Consistent failure to update cost or pricing data with knowledge that past activity showed that prices have decreased.
- Specific knowledge that is not disclosed regarding significant cost issues that will reduce the proposed cost.
- Repeated denial by responsible contractor employees of the existence of historical records that are subsequently found.
- Continued failure to make complete disclosure of data known to responsible personnel.
- Altered or false documents.