R&K Enterprises Inc., a company based in Newport News, Virginia, has agreed to pay over $2.6 million to settle allegations that it falsely claimed eligibility for small business contracts. The United States government alleged that R&K misrepresented its size qualifications for the General Services Administration’s One Acquisition Solution for Integrated Services Small Business Pool 1 Contract.
According to the allegations, R&K attempted to meet the required size standard by transferring a contract to K&P Management Inc., another company owned by the wife of R&K's owner. The government claimed that R&K and K&P were affiliated due to shared executives and control, which should have been factored into R&K's size calculation.
U.S. Attorney Jessica D. Aber stated, "My office is committed to identifying, investigating and eradicating attempts to exploit programs intended to protect competition for contracts." Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the importance of small business set-aside contracts and noted that fraudulent claims prevent genuine small businesses from accessing these opportunities.
Deputy Inspector General Robert C. Erickson from the GSA affirmed their commitment to investigating fraud in small business contracting. The settlement was achieved through collaboration between various federal agencies, including the U.S. Attorney’s Office for the Eastern District of Virginia and several branches of the Justice Department.
Assistant U.S. Attorney Clare Wuerker and Trial Attorney Danielle Rowan led the investigation into this matter. It is important to note that the settlement resolves allegations only, with no determination of liability made against R&K Enterprises Inc.