A Florida businessman and his companies, S.A.F.E. Structure Designs and U.S.A. Manufacturing, have agreed to pay $1 million to resolve allegations of submitting fraudulent bids for government contracts with the Department of Defense (DoD). Johnny Buscema Jr., who owns both companies, was accused of violating the False Claims Act by causing the submission of fraudulent contract bids to the Defense Logistics Agency (DLA), resulting in overcharges for goods and services purchased under those contracts.
Safe Structure Designs (S.A.F.E.) specializes in the design, engineering, and production of ergonomic safety equipment tailored for various sectors, such as aviation, marine, railroad, heavy machinery, and industrial applications. As an ISO 9001:2015 certified organization, they provide high-quality products and services to both civilian and military clients. The company focuses on creating custom-designed, precision-engineered equipment that enhances safety and operational efficiency across diverse environments. Their profile highlights that they operate seven manufacturing facilities across the United States, each equipped with distinct capabilities, and they proudly hold a GSA Contractor designation.
The companies, based in New Port Richey, Florida, and Las Vegas, provided logistical support and supplies for military customers under Maintenance, Repair, and Operations (MRO) contracts. These contracts were held by a prime vendor that procures supplies and equipment, such as chemicals, electrical supplies, HVAC systems, and small tools, for DoD agencies. As part of the program, the prime vendor is required to engage in competitive bidding to ensure the government receives the best possible price.
From 2016 to 2023, the U.S. alleged that Buscema and his companies colluded with other entities to rig bids for the MRO contracts covering the Northeast and Southeast U.S. regions. The fraudulent activities included submitting non-competitive bids, paying other vendors to submit similar bids, and submitting multiple bids from his own companies to create the appearance of a competitive process. As a result, the U.S. government was allegedly overcharged for products and services purchased under these contracts.
“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 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.”
U.S. Attorney Joshua S. Levy for the District of Massachusetts condemned the actions, stating, “They manipulated and undermined the fair and open bidding process designed to save our military — and taxpayers — money. When defense contractors collude, rather than compete, they violate the law and the public’s trust.”
The resolution, which is based on the parties’ ability to pay, was reached after a coordinated investigation by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Massachusetts, and law enforcement agencies such as the Department of Defense’s Defense Criminal Investigative Service and the Army Criminal Investigation Division.
“This settlement sends a clear message that we will work tirelessly to prevent anticompetitive practices in government procurement,” said Special Agent in Charge Patrick J. Hegarty of DCIS Northeast Field Office.
The settlement does not include an admission of liability, and the claims remain allegations. The case underscores the Justice Department’s ongoing efforts to protect taxpayer money and ensure fair and transparent processes in government contracting.
