Food Distributor Settles Small Business Contracting Violations

GS Foods Group agreed to pay $949,696 to resolve False Claims Act liability for bidding on contracts reserved for small businesses when it did not qualify as a small business, involving supplying food to facilities operated by the Federal Bureau of Prisons and Immigrations and Customs Enforcement, the Justice Department announced Wednesday.

According to the DOJ, GS Foods did not qualify as a small business because of its affiliation with certain other companies, and its subsidiaries GoodSource Solutions and Dori Foods bid on and obtained contracts reserved for small businesses. GS Foods timely self-reported the conduct, cooperated with investigations, ...