Chapter 7 of 11 · Fraud Signals
THE RED FLAGS

Public records analysis surfaced eight anomalies in CAHSR's contractor data. Three of them — three IT vendors with near-identical contract structures, near-identical overrun rates of 100–112%, and near-identical name variations in the same database — are consistent with a specific type of procurement fraud under California law. Under California Public Contract Code §20116, intentionally splitting contracts to avoid competitive bidding thresholds is a crime. These are observations from public data, not allegations of guilt. The Authority has not responded to public records requests for justification documentation.

8
Flags Identified
2 critical · 4 high · 2 medium severity
$539M
Potentially Recoverable
Conservative estimate from flagged contracts
§20116
CA Bid-Splitting Law
The statute the IT vendor pattern may implicate
Estimated Recoverable Waste by Flag ($M)
Flag Severity Distribution
$22.3M
Paid to 3 IT Vendors on $10.9M in Contracts
AbleGov Inc., Advanced Technical Solutions, and Allied Network Solutions: same package, near-identical structures, 100–112% overruns, 4–9 amendments each. Classic bid-splitting fraud signature.
All Flags — Detail
File a Public Records Act Request

California's CPRA gives any member of the public the right to inspect public agency records. Send to: info@hsr.ca.gov or by mail: California High-Speed Rail Authority, 770 L Street, Suite 1180, Sacramento, CA 95814. Agency has 10 business days to respond.

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