Atlanta Contractor Gets 12 Years for Fraud After Botching FEMA Contract

The Federal Emergency Management Agency (FEMA) desperately needed meals supplied to Puerto Rico residents affected by a natural disaster: Hurricane Maria had slammed the island in September 20217. FEMA put out an RFP (request for proposals), which was answered by Atlanta entrepreneur Tiffany Brown.

Brown, who ran a ,, was supposed to supply 30 million meals. She subcontracted the contract to two businesses, including a local caterer with 11 employees.

Now Brown has been sentenced to 12 years in prison in a $156 million FEMA fraud case. Brown must pay $1.7 million in restitution after she supplied only 50,000 meals. Why couldn’t she fulfill her contract?

“I’ve had challenges in this area, particularly because I’m so young and being a woman in this world, in the food industry world,” she told CBS News. “My biggest mistake was that I didn’t ask for more help.”

But FEMA says her mistake was criminal in nature. The agency accused Brown of fraudulently obtaining $700,000 in litigation advances from the Litigation Funding Group of Georgia (“LFG”) by falsely claiming that she had settled with a logistics company who failed to deliver the meals to FEMA.

“Brown resorted to extraordinary lengths to defraud FEMA during a critical period when individuals were in desperate need of food resources during the devastating aftermath of Hurricane Maria,” said Acting U.S. Attorney Richard S. Moultrie, Jr., said in a Department of Justice press release. “Our Office, along with our law enforcement partners, will remain vigilant in pursuing and prosecuting individuals who exploit the devastation caused by natural disasters as an opportunity to commit fraud.”

Christopher Brown, who local entrepreneur who has secured contracts on the state level, says getting into the government contracting business is not for the faint of heart.

“I’ve had to pull out of some contracts because I just couldn’t scale the way the RFP said I needed to,” he told AtlantaFi.com. “This, what happened to this young lady, is a cautionary tale for Atlanta business owners.”

Brown’s plight is a solemn reminder that small businesses must be honest and transparent with themselves if they apply for government contracts.

On YouTube and other mediums, many people hawk easy ways to score government contracts, but they are not so easy to deliver on.

Before You Apply For a Government Contract, Know Your Capabilities

Before a small business applies for federal government contracts, there are several key factors to understand to navigate the process effectively and avoid pitfalls. Here’s a concise breakdown:

Find Out If Your Business Qualifies

First, ensure your business qualifies as a small business under the U.S. Small Business Administration (SBA) standards. These standards vary by industry and are based on your North American Industry Classification System (NAICS) code, which categorizes your products or services.

Typically, manufacturing businesses with 500 or fewer employees or non-manufacturing businesses with average annual receipts under $7.5 million qualify, but exceptions exist by industry.

Use the SBA’s Size Standards Tool to confirm eligibility, as size standards determine if you can bid on contracts set aside for small businesses.

Sign Up With SAM.Gov

You’ll need to register your business with the System for Award Management (SAM) at SAM.gov. This is mandatory to bid on federal contracts. During registration, you’ll receive a Unique Entity Identifier (UEI), a 12-character alpha-numeric code that replaced the DUNS number in 2022 to streamline the process.

SAM registration is free, but it’s your business’s résumé for government agencies—make your profile detailed and accurate to stand out. Some transactions, like sub-awardee reporting, may only require a UEI without full registration, so assess your needs.

Make Sure Your Business Is In Compliance

Compliance with federal regulations is non-negotiable. The Federal Acquisition Regulation (FAR) governs the contracting process, and small businesses must adhere to it, along with other rules like 13 CFR 125 for small business programs.

If bidding on Department of Defense (DoD) contracts, you’ll need to meet Cybersecurity Maturity Model Certification (CMMC) levels, which can involve significant upfront costs to secure your systems. Non-compliance can lead to audits, penalties, or losing contracts, so be prepared for scrutiny.

Know Your Competition

Understand the competitive landscape. The federal government aims to award 23% of prime contract dollars to small businesses, often through set-aside or sole-source contracts for specific groups like women-owned, veteran-owned, or HUBZone businesses.

However, competition is fierce, and larger contractors often dominate. Research the market using tools like SAM.gov, which lists contracts over $25,000, and the Dynamic Small Business Search (DSBS) to find opportunities and partners.

Also, check USASpending.gov to identify agencies’ spending patterns and procurement forecasts from agencies’ Offices of Small and Disadvantaged Business Utilization (OSDBU).

Follow the Bid Requirements Closely

Bidding requires careful preparation. Federal contracts often involve Invitations for Bid (IFBs), Requests for Quotations (RFQs), or Requests for Proposals (RFPs), each with different expectations. IFBs focus on the lowest price, while RFPs prioritize value and solutions.

Your bid must address all requirements, highlighting your business’s stability, past performance, and experience. Be realistic about your capacity—overcommitting can lead to failure.

Subcontracting with a prime contractor via the SBA’s SubNet database can be a lower-risk way to gain experience before bidding directly.

Count the Cost Before Applying

Finally, consider the costs and commitments. Government contracts often have strict regulatory requirements, including labor, environmental, and equal employment opportunity rules. Cybersecurity compliance, especially for DoD contracts, can require significant investment.

Additionally, while the government is a reliable payer, the process involves extensive paperwork, potential audits, and sometimes delayed payments with interest. Ensure your business can handle the financial and administrative burden, and aim for contracts that align with your capabilities and profit goals—agencies often expect around a 15% profit margin.

Final Word

What happened to Tiffany Brown is sad, but unfortunately, it’s not rare. Too many business owners run before they should walk.

By focusing on eligibility, registration, compliance, market research, strategic bidding, and resource readiness, a small business can better position itself for federal contracting success.