AF lifts suspension of reverse auctioneer FedBid

Just a few weeks after the Air Force suspended contracts with FedBid, a Vienna, Va. reverse-auction company and requested the company’s debarment, the service lifted the suspension after reaching an administrative agreement, according to a Feb. 20, 2015 Air Force document.

The suspension stems from a Veterans Affairs Department inspector general report that said Susan Taylor, Veterans Health Administration deputy procurement officer, pressured staff repeatedly in emails to speed up the acquisition process and pick FedBid for the reverse auction contracts.

The IG report says Taylor, “improperly disclosed non-public VA information to unauthorized persons, misused her position and VA resources for private gain, and engaged in a prohibited personnel practice when she recommended that a subordinate senior executive service employee be removed from SES during her probation period.”

The agreement will end both the suspension and debarment proceedings as long as FedBid “maintains the business honesty and integrity required of a government contractor and that the company operates in strict compliance with all applicable laws, regulations and terms of its governance contracts and subcontracts.”

Keep reading this article at: http://www.fiercegovernment.com/story/air-force-lifts-suspension-fedbid/2015-02-23

Air Force suspends, begins debarment process of reverse-auctioneer FedBid

The Air Force has suspended FedBid from federal procurement activity, both new contracts and follow-ons, as of Jan. 26, 2015 and proposed the reverse auction company for debarment.

FedBid’s listing in the System for Award Management (SAM) says the Air Force suspended and is proposing debarment with proceedings pending.

The Air Force wrote in the listing on SAM that it deemed FedBid ineligible for new contracts or follow-on deals “based upon adequate evidence of conduct indicating a lack of business honesty or integrity, or a lack of business integrity, or regulation, statute, executive order or other legal authority, pending completion of an investigation and/or legal proceedings.”

“As promised in our previous reporting on VA’s contracting and relationship with FedBid, the OIG referred FedBid to the Interagency Suspension and Debarment Committee for an independent decision whether the company should be debarred. Through the Committee’s processes the Department of the Air Force agreed to be the lead agency,” said an VA OIG spokesperson in an email to Federal News Radio.

Keep reading this article at: http://www.federalnewsradio.com/395/3789803/Air-Force-suspends-begins-debarment-process-of-FedBid-

DHS, OPM suspend contracts with USIS after major cyber attack

Peter Boogaard, a DHS spokesman, would not confirm the identity of the contractor but said that a multiagency cyber response team is working to identify the scope of the attack and how many employees were affected.

He said the agency has determined that some DHS personnel have had their personal information compromised and the agency has notified its entire workforce to monitor their financial accounts for suspicious activity.

“As we continue to investigate the nature of this breach on an urgent basis, we will be notifying specific DHS employees whose [personally identifiable information] we can determine was likely compromised.”

Keep reading this article at:  http://www.federaltimes.com/article/20140807/IT/308070009/DHS-OPM-suspend-contracts-USIS-after-major-cyber-attack 

Contractor suspensions and debarments doubled over the last 4 years

The number of contractor suspensions and debarments government-wide have doubled since fiscal 2009 because agencies have developed better management tools and a more active referral process, a May 21 Government Accountability Office (GAO) report says.

Agencies can use suspension and debarment to exclude individuals, contractors and grantees from receiving future contracts, grants and other federal assistance due to various types of misconduct.

A previous GAO report found agencies issuing the most procurement related suspensions and debarments shared common characteristics: dedicated staff, detailed policies and procedures, and an active referral process.

Many agencies that previously faltered in rooting out contractor misconduct have taken the lead from those stronger agencies, the latest report says.

Keep reading this article at: http://www.fiercegovernment.com/story/gao-contractor-suspensions-and-debarments-have-doubled-over-last-4-years/2014-05-22

GSA acquisition database integration pushed back to 2018

The General Services Administration (GSA) pushed back the planned completion date of an integrated acquisition database to 2018 because of development problems and cost overruns, GSA Assistant Commissioner Kevin Youel Page told a Senate panel March 6.

“We’ve suffered our own missteps,” Page said during a hearing of the Senate Homeland Security and Governmental Affairs Committee subcommittee on financial and contracting oversight.

Plans were made in 2001 to combine governmentwide acquisition databases into a single system called the Integrated Acquisition Environment.

But the project has been plagued with problems.

A March 2012 Government Accountability Office report says cost overruns, which grew by 89 percent, were largely due to mistakes GSA has made. GAO initially estimated it would cost about $95.7 million, but the 2012 estimate came in at $181.1 million.

Keep reading this article at: http://www.fiercegovernment.com/story/gsa-acquisition-database-integration-pushed-back-2018/2014-03-07 

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Vendors doing business with IRS owe nearly $600M in back taxes

Some 1,168 businesses that sell products and services to the Internal Revenue Service owe a combined $589 million in delinquent taxes, auditors found.

Federal law — as updated in the 2012 Consolidated Appropriations Act — forbids agencies from signing contracts with companies with unpaid federal tax liabilities, but the IRS’ system of controls, while effective much of the time, is not fool-proof, according to the report released Wednesday by the Treasury Inspector General for Tax Administration.

“When the IRS conducts business with vendors that do not comply with federal tax laws, it conveys a contradictory message in relation to its mission to ensure compliance with the tax laws,” said J. Russell George, Treasury Inspector General for Tax Administration.

The IRS in the past has resisted TIGTA’s recommendation that it conduct an annual check on contractor tax records. And though the agency’s use of its Master Vendor File is generally effective, auditors recently found that the IRS has not checked the General Services Administration’s Excluded Parties List System. The agency improperly awarded four new contracts or exercised additional option years on existing contracts, valued at $2.6 million, to three vendors that were suspended from doing business with the government, the auditors found.

Keep reading this article at: http://www.govexec.com/contracting/2013/12/vendors-doing-business-irs-owe-nearly-600m-back-taxes/75665 

Scandal widens over contracts for Navy work

A scandal involving the Navy’s ship supply network, until now focused on the Pacific Fleet, has spread to another contractor working for Navy ships in the waters off the Middle East, Africa and South America.

The Justice Department is looking into allegations that the company, Inchcape Shipping Services, with the help of subcontractors, overcharged the Navy by millions of dollars, interviews and previously undisclosed court documents show.

Inchcape, which is owned by the government of Dubai, was suspended this week from winning new federal contracts and is expected to meet with Justice Department officials soon to discuss the case.

The civil fraud investigation, which was prompted by a whistle-blower who had worked for the company, is another serious embarrassment for the Navy, which is already grappling with a criminal investigation of its main ship supplier in the Pacific, Glenn Defense Marine Asia.

The firm’s owner, Leonard Glenn Francis, was arrested in September on charges of conspiring to bribe Navy officials with cash, trips and prostitutes. In exchange, investigators say, those officials helped divert ships to certain ports where Glenn Defense submitted inflated bills. Three Navy officials have been charged with crimes, and four others, including two admirals, have been suspended over their ties to Mr. Francis.

Keep reading this article at: http://www.nytimes.com/2013/11/30/us/scandal-widens-over-contracts-for-navy-work.html?pagewanted=all&_r=0

IG: Debarred firms remain listed for transportation set-asides

The Department of Transportation IG has alerted the department that it found three suspended or debarred firms currently listed in state Disadvantaged Business Enterprises directories as eligible to participate in the DBE program.

The IG issued a management advisory stemming from a recent audit into the DBE program, noting that federal regulations explicitly exclude suspended or debarred firms from receiving federally funded contracts.

Keep reading this article at: http://www.fedweek.com/item-view.php?tbl=3&ID=5412 

Read DOT IG’s letter at: http://www.oig.dot.gov/sites/dot/files/DBE%20Management%20Advisory.pdf 

Agencies need governmentwide guidance on suspension and debarment process, GAO official says

Though the suspension and debarment system has been around for many years,  there is little guidance for it, Government Accountability Office Acting  Director of Acquisition and Sourcing Management John Neumann said at a June 12  House Government and Oversight Committee hearing.

“You won’t find anywhere in the U.S. code other than a note in the financial  chapter,” Neumann said. “That’s part of the problem. We created a system, but  did not supply guidance on how it should operate.”

The Interagency Suspension and Debarment Committee, established in 1986,  monitors and coordinates the governmentwide system of suspension and debarment,  but agencies aren’t required to work with the ISDC, Neumann noted.

ISDC relies on voluntary agency participation in its informal coordination  process, which works well when used, he said. However, Neumann found that not  all agencies coordinated through ISDC, and agencies without active suspension  and debarment programs generally were not represented at monthly coordination  meetings.

Keep reading this article at: http://www.fiercegovernment.com/story/agencies-need-governmentwide-guidance-suspense-and-debarment-process-gao-of/2013-06-13?utm_medium=nl&utm_source=internal

FEMA official gets two years’ probation for revolving-door relationship with contractor

Private industry frequently considers hiring existing and former federal government employees for their experience, knowledge base and skill set. As a reaction to the continuing perception that high-level federal employees jump from government to private industry and take sensitive government information with them, over the years Congress has introduced complex and often overlapping revolving-door legislation that imposes post-government employment restrictions on certain employees. While many government employees successfully transition to the private sector, failure to observe revolving-door laws and regulations can result in severe consequences for both contractors and government employees. A recent example of what can go wrong for both such parties is the case of Timothy Cannon and the Gallup Organisation.

On April 9 2013 Judge Jackson of the District Court for the District of Columbia sentenced Timothy Cannon, former director of the human capital division at the Federal Emergency Management Agency (FEMA), to two years of probation for conflict of interest violations.

According to Cannon’s plea, he helped Gallup to acquire a $6 million contract, while at the same time pursuing employment with the company. As a result of its alleged employment discussions with Cannon and related conduct, Gallup faces potential liability for civil damages and penalties under the False Claims Act and the Procurement Integrity Act, including treble damages and disgorgement of all money received under the contract. Moreover, these types of case always raise the risk of the contractor’s suspension or debarment, which would preclude any new contract awards for up to three years. This case serves as a reminder for private contractors wishing to hire existing or former government employees that they must have rigorous internal controls in place in order to ensure compliance with post-government employment requirements.

Keep reading this article at: http://www.internationallawoffice.com/newsletters/detail.aspx?g=cb1ea107-d51f-4ad7-b375-00f8a3dad2d7&redir=1