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*This is for my learning purposes only* A&B Company had a fixed-priced construction contract with the Navy.A&B Company as prime contractor entered into three subcontracts:

*This is for my learning purposes only*

A&B Company had a fixed-priced construction contract with the Navy.A&B Company as prime contractor entered into three subcontracts:

  1. Asphalt Subcontractor (Asphalt) was tasked with asphalt work for the project;
  2. Backhoe Subcontractor was tasked with site preparation and backhoe work; and
  3. Testing Subcontractor was tasked with conducting numerous tests at the job sites.

Backhoe completed its work on April 18th, 20X7 and sent an invoice to A&B Company for $1,498.Backhoe was not immediately paid. Asphalt completed its work on April 20th, 20X7 and sent an invoice to A&B Company for $11,338.Asphalt was not immediately paid and has never been paid.A&B Company contends that the work completed by Asphalt was inadequate and would not be paid until the work met with its approval.On April 21st, 20X7, Tester completed its work under its subcontract and submitted its invoice to A&B Company for $3,000.Tester was not immediately paid.

A&B Company submitted its request for payment, including the work performed by Asphalt, Backhoe, and Tester under the prime contract to the Navy and was paid $25,468 on May 15th, 20X7 for this request.As part of its payment request and in accordance with FAR 52.232-5 Payments under Fixed Price Construction Contracts.

On May 18th, 20X7, A&B Company paid Backhoe $200 on its $1,498 invoice.On November 1, Year 0, A&B Company completed its work under its prime contract with the Navy.The contract requirement included submission of Tester's report that had been conducted but not yet delivered to A&B Company or paid for by A&B Company.Tester would not provide the required report unless it was paid a portion of its fee, so on November 3, 20X7 A&B Company paid $500 to Tester and received the report.

On November 4, 20X7 A&B Company made a final payment request of $4,683.The request to the Navy again included the certification in accordance with 52.232-5.The Navy accepted the work and paid the November 4 20X7 request in the amount of $4,683.

  1. What are the assumptions you can make from this scenario?
  2. Briefly describe the important prohibition or limits included in the False Statements Act.
  3. What are the elements (False Statements Act) that the government must prove?
  4. Referencing the facts given, which elements of proof are met and why?Also which elements are not met and why?
  5. Identifying and explain any defenses that A&B Company might have.
  6. What penalties does the contractor potentially face?

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