When looking at the amount the US government spends on procurement that rose to $377. 5 billion in 2005 from $174. 4 billion in 2000, it makes the US government the largest spender on prime contacts (Berriso, 2006). Records show that over the last five years government procurement spending had been the fastest growing among others that make up the discretionary budget.
The findings according to Waxman (2006) are that procurement spending alone had risen 86% while the overall discretionary spending had risen 43%, to the point where government contractual spending consumes 40 cents of the available discretionary fund. From all these activities, the amount recouped in a form of settlements and judgement accruing from fraudulent activities was over $1. 4 billion that shows the existence of fraud is significant. Just looking at one section, defense procurement reveals the awards in a form of settlement and judgments had amounted to $609 million in 2006.
What this demonstrates is that fraud had been a threat to what the US government is trying to accomplish because it squanders the limited available fund the government can spend on various sectors that require spending such as national defense that threatens the nation’s security, numerous social issues, for homeland security, and natural disasters whenever they occur. Furthermore, the money squandered is the taxpayers money aggregates the situation.