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A series of special government and congressional investigations has identified widespread contracting fraud in both the State and Defense departments, especially in overseas expenditures.
In the three years beginning in 2009, Mr. Jordan said, the S.B.A. had pursued suspension and debarments for contracting fraud in 51 cases — compared with not more than seven instances over all of the previous decade.
Proponents of the law say that $20 billion of recoveries is proof that contracting fraud is real, and that offering whistle-blowers a percentage is a good way to compensate them for the near-certainty that they will be fired.
Dina L. Rasor, an author and independent expert on contracting fraud, said she believed that the $100 billion cost estimate from the Congressional Budget Office might be low, since there were virtually no reliable audits of or controls on spending during the first years of the war.
"That's advice lawyers give every day to clients under investigation," protests John T. Boese, a government contracting fraud expert with Fried Frank in Washington.
One reviewer said the agency should perform more audits that expose contracting fraud and then find mechanisms to ban those contractors.
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More than a dozen speakers who appeared at a public hearing last month on the Giuliani plan opposed it, with several saying it would threaten the balance of power in the city government and leave New York City more vulnerable to contract fraud.
The suit charges breach of contract, fraud and negligent misrepresentation.
More than 100 federal investigations are under way into suspected contract fraud related to those wars.
He sued Caterpillar for breach of contract, fraud and misappropriating trade secrets.
More than 120 companies have been charged by the Justice Department for contract fraud and related crimes in Iraq, Afghanistan and Kuwait, officials said.
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