> terminate the contract and blacklist the company permanently (include the board of directors to ensure no hopping between companies to take advantage).

Here, Bradken acquired a foundry that had been faking test results for decades before; eventually discovered it, and reported it to the Navy once they did. Giving Bradken the death penalty out of this seems absurd.

(Not all of Bradken's actions post-discovery were perfect, and it did take them several years post-acquisition before they detected the ongoing fraud-- so there was definitely a failure here, but...).