Defense Procurement: E-Systems' Reporting of Alleged Wrongdoing to Army's Fraud Division

Pursuant to a congressional request, GAO reviewed a defense contractor's reporting of alleged wrongdoing to the Army's fraud division, focusing on: (1) whether federal laws, regulations, or its administrative settlement agreement required the contractor to disclose suspected violations of procurement law; (2) how many and what types of hotline violations were lodged against the contractor; (3) whether contractor employees altered or reinvestigated hotline complaints to avoid disclosure to the government; (4) the details of three specific hotline cases; (5) why the Army failed to debar the contractor from further government business after the serious allegations that resulted in a May 1994 show-cause letter; and (6) what loss the government sustained as a result of the contractor's actions.