U.S. Overlooking Contractor Fraud

WASHINGTON —  Hundreds of companies prosecuted or sued for defrauding the government can still receive federal business--and many have gotten new contracts--because agencies chose not to ban them, a computer analysis shows.

The companies include a Texas contractor convicted of selling faulty Coast Guard windshields and an environmental cleanup company convicted of bribery.

Vice President Al Gore wants to expand the federal debarment program to exclude businesses with troublesome labor or worker-safety records--even though the program is not debarring many of those already convicted or sued for fraud.

The Associated Press analysis found many companies with a history of fraud were able to get new federal contracts. Some had multiple court cases against them.

Using court records, news stories, government documents obtained under the Freedom of Information Act and inspector general reports, the AP identified 1,020 companies sued or prosecuted for fraud in the last five years. The analysis found 737 out of the 1,020 companies remained eligible for future contracts.