Cross charging is a widespread type of procurement fraud. It happens when a defense contractor illegally shifts expenses from one contract to another to increase the contractor’s profits.
Here is how cross charging defense contractor fraud tends to work. Say that a contractor has two contracts. One is a fixed-price contract, and one is a cost-plus contract.
No matter where you live, you’ve probably seen it—highways being built, roads being repaired or widened, and massive buildings slowly growing towards the sky. It seems like many towns and cities are in a constant state of construction. The federal government funds or assists many of these construction projects, and it can be a lot to keep an eye on.