S.A.F.E. Structure Designs, U.S.A. Manufacturing, and their owner, Johnny Buscema Jr., have agreed to a $1 million settlement to resolve allegations of violating the False Claims Act. The allegations involve submitting false claims on a prime vendor contract with the Defense Logistics Agency (DLA), used by the Department of Defense (DoD) for purchasing goods and services.
S.A.F.E. Structure is based in Las Vegas, Nevada, while USA Manufacturing operates out of Port Richey, Florida. Both companies are owned by Buscema.
The companies were vendors for Noble Sales Co., Inc., doing business as Noble Supply & Logistics (Noble), a Boston-based prime contractor to DLA for Maintenance, Repair, and Operations (MRO) contracts in the Northeast and Southeast regions. Under these contracts, Noble was required to solicit bids from two independently competing vendors for transactions below $25,000 and three for those at or above $25,000.
According to the settlement agreement, from 2014 to 2023, Buscema's companies coordinated with Noble or other vendors to submit bids on MRO contracts without intending to win the business. They admitted submitting over 100 "courtesy bids" or "comps," where prices were provided by Noble that S.A.F.E. Structure or USA Manufacturing should either bid or exceed.
Buscema also acknowledged paying other vendors to submit at least 60 such bids so his companies could secure contracts. Additionally, he admitted providing separate bids from both S.A.F.E Structure and USA Manufacturing despite owning both entities.
U.S. Attorney Joshua S. Levy stated: “As evidenced in this settlement agreement, these contractors gamed the system to line their own pockets... Contractors should be scrupulous in dealing with the government."
Principal Deputy Assistant Attorney General Brian M. Boynton commented: “Those who seek to do business with the government are expected to compete fairly... The department will hold accountable government contractors that engage in bid rigging."
Patrick J. Hegarty of DoD’s Office of Inspector General noted: “Today’s announcement demonstrates our commitment...to investigate allegations of anticompetitive practices."
Keith K. Kelly from Army CID emphasized their dedication: “CID is committed...to ensure the U.S. Army remains...capable.”
Joseph Dattoria from GSA OIG remarked on protecting taxpayer dollars through collaboration with law enforcement partners.
This case was managed by Assistant U.S Attorneys Brian LaMacchia and Lindsey Ross alongside Trial Attorney Samson Asiyanbi from Justice Department’s Civil Division.