U.S. Attorney's Office
District of Massachusetts
January 3, 2025
BOSTON – S.A.F.E. Structure Designs, U.S.A. Manufacturing, and their owner, Johnny Buscema, Jr., have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by submitting, or causing the submission of, false claims on a prime vendor contract with the Defense Logistics Agency (DLA), which the Department of Defense (DoD) uses to purchase goods and services.
S.A.F.E. Structure, based in Las Vegas, Nev., sells safety equipment, and USA Manufacturing, based in Port Ritchey, Fla., is a general construction company. Buscema, of Port Richey, owns and operates both companies.
S.A.F.E Structure and USA Manufacturing were vendors to Noble Sales Co., Inc. d/b/a Noble Supply & Logistics (Noble), which is a Boston-based prime contractor to DLA for Maintenance, Repair, and Operations (MRO) contracts for the Northeast and Southeast regions. Under the MRO contracts, the DoD can place orders for goods and services through Noble, and Noble is required to solicit bids from two independently competing vendors for transactions below $25,000, and from three independently competing vendors for transactions at or above $25,000. According to DLA, MRO contracts are “a partnership aimed at achieving infrastructure savings, inventory cost reductions, and favorable product pricing through leveraged buying.”
Pursuant to the settlement agreement, Buscema, S.A.F.E. Structure, and USA Manufacturing admitted that, from 2014 to 2023, they coordinated with Noble or other vendors to submit bids on the MRO contracts. For example, Buscema and his companies admitted that, at Noble’s request, they submitted over 100 bids—which they called “courtesy bids” or “comps”—where Buscema and his companies had no intention of winning the business. For these “courtesy bids” or “comps,” Noble provided Buscema and his companies with the specific prices that Buscema’s companies should bid or a price that the bids should exceed. As a result, vendors other than S.A.F.E. Structure or USA Manufacturing won the business. Buscema also admitted that he paid two other vendors to submit at least 60 “courtesy bids” or “comps,” so that S.A.F.E. Structure or USA Manufacturing won the business. Buscema also admitted that, on occasion, he provided a bid from S.A.F.E Structure and a bid from USA Manufacturing for the same solicitation, even though Buscema owned both companies, and that Noble was aware that Buscema owned both companies. The United States contends that claims under the MRO contracts resulting from these coordinated bids were false under the False Claims Act, and that the DoD paid more under the MRO Contracts as a result.
“As evidenced in this settlement agreement, these contractors gamed the system to line their own pockets. They manipulated and undermined the fair and open bidding process designed to save our military – and taxpayers – money. Contractors should be scrupulous in dealing with the government, not coordinating with each other to pad their bottom line,” said United States Attorney Joshua S. Levy. “When defense contractors collude, rather than compete, they violate the law and the public’s trust.”
“Those who seek to do business with the government are expected to compete fairly and independently to ensure that the government receives an appropriate price,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable government contractors that engage in bid rigging or otherwise seek to defraud the American taxpayers.”
“The Department of Defense (DoD) expects its contractors to compete in open and fair markets,” said Patrick J. Hegarty, Special Agent in Charge of the DoD’s Office of Inspector General’s Defense Criminal Investigative Service, Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our law enforcement partners to investigate allegations of anticompetitive practices and ensure the integrity of the DoD’s procurement process.”
“Department of the Army Criminal Investigation Division works diligently to maintain the Army’s readiness and will continue to work closely with our law enforcement partners to prevent and thoroughly investigate fraudulent activity,” said Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division (CID)’s Fraud Field Office. “CID is committed to providing expertise and capabilities supporting whole of government efforts to ensure the U.S. Army remains the most technologically advanced, capable, and ready fighting force in the world.”
“GSA OIG remains committed to working closely with its law enforcement partners to protect American taxpayer dollars and government programs from fraud,” said Special Agent in Charge Joseph Dattoria, U.S. General Services Administration, Office of Inspector General (GSA OIG), Northeast Field Investigations Division.
U.S. Attorney Levy, Deputy AAG Boynton, DCIS SAC Hegarty, ARMY CID SAC Kelly and GSA SAC Dattoria made the announcement. This matter was handled by Assistant U.S. Attorneys Brian LaMacchia and Lindsey Ross for the District of Massachusetts, and Trial Attorney Samson Asiyanbi of the Justice Department’s Civil Division.
Source: U.S. Attorney's Office press release
