The PCSF Turns Five: DOJ Reaffirms Its Commitment To Prosecuting Collusion and Fraud in Government Contracting

On November 22, 2024, the U.S. Department of Justice (DOJ) celebrated the fifth anniversary of its Procurement Collusion Strike Force (PCSF), an interagency effort to address anti-competitive collusion and fraud in government procurement, grants, and program funding at the local, state, and federal levels. Leaders of DOJ’s Antitrust Division, along with representatives from 12 national law enforcement partners and 25 U.S. Attorney’s offices, gathered in Washington to reflect on the accomplishments of the PCSF and to reaffirm DOJ’s commitment to the PCSF going forward.

Assistant Attorney General (AAG) Jonathan Kanter, PCSF Director Daniel Glad, and U.S. Department of the Interior Inspector General and Chair of the Council of the Inspectors General on Integrity and Efficiency Mark Greenblatt delivered remarks. These speakers highlighted the successes of the PCSF, which since its inception in 2019 has opened over 145 criminal investigations, investigated and prosecuted more than 85 companies and individuals involving over $576 million in government contracts, obtained more than 60 guilty pleas and trial convictions, and secured $65 million in fines and restitution. The PCSF has also trained more than 39,000 individuals across 73 inspector generals’ offices to identify antitrust crimes and related fraud schemes. AAG Kanter attributed the PCSF’s successes to its emphasis on targeting individual accountability along with corporate prosecutions, increasing use of advanced technology and data analytics to detect antitrust violations, and increasing cooperation between federal, state, and international law enforcement agencies.

The PCSF was formed during the first Trump administration to “promote competition and prevent illegal collusion during the contracting process,” and to “facilitate the detection and reporting of suspicious behavior to help agents and prosecutors investigate and vigorously prosecute crimes when they occur.” Given the incoming administration’s focus on government spending, it may continue — if not intensify — the PCSF’s scrutiny of contracts involving government funds. Accordingly, the PCSF’s fifth anniversary serves as a good reminder of the importance of antitrust compliance, especially for companies doing business with the government.

To that end, our recent Advisory provides helpful compliance tips based on the Antitrust Division’s recently updated manual for the Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations.

For questions about criminal antitrust issues or antitrust compliance, contact the authors or any of their colleagues in Arnold & Porter’s Antitrust/Competition or White Collar Defense & Investigations practice groups.

© Arnold & Porter Kaye Scholer LLP 2024 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.