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August 8, 2014 By AMK

DHS contractor suffers major computer breach, officials say

A major U.S. contractor that conducts background checks for the Department of Homeland Security has suffered a computer breach that probably resulted in the theft of employees’ personal information, officials said Wednesday.

The company, USIS, said in a statement that the intrusion “has all the markings of a state-sponsored attack.”

The breach, discovered recently, prompted DHS to suspend all work with USIS as the FBI launches an investigation. It is unclear how many employees were affected, but officials said they believe the breach did not affect employees outside the department. Still, the Office of Personnel Management has also suspended work with the company “out of an abundance of caution,” a senior administration official said.

Keep reading this article at: http://www.washingtonpost.com/world/national-security/dhs-contractor-suffers-major-computer-breach-officials-say/2014/08/06/8ed131b4-1d89-11e4-ae54-0cfe1f974f8a_story.html

Filed Under: Government Contracting News Tagged With: background check, background investigation, DHS, FBI, hackers, OPM

February 7, 2014 By AMK

The federal outsourcing boom and why it’s failing Americans

Two of the biggest news events of the past year have been the leaks about top-secret snooping by the NSA and the disastrous rollout of Obamacare. But in an important way, they are both manifestations of a story that has been unfolding for decades — that of a federal government that has outsourced too much of what it does to private contractors while allowing the quality of its own workforce to atrophy.

Lots of Americans were disturbed to learn from Edward Snowden that the government is keeping track of their every phone call and text message. But they might have also wondered why a 30-year-old government contractor in Honolulu, with security clearance that was approved by another private contractor, had routine access to some of the government’s most sensitive secrets. Even worse, two years after Pfc. Bradley Manning did the same thing, Snowden managed to download millions of pages of documents from a computer system designed and managed by private contractors without setting off a single alarm. The whole affair was an embarrassment to Washington’s government contracting sector.

So, too, the fiasco with HealthCare.gov, which despite the bleating of Republicans has almost nothing to do with the wisdom of the new health-care law and everything to do with the way the government and its outside contractors set about implementing it. While several of the contractors failed to perform as promised, in hindsight it appears the government also made a crucial mistake in deciding to rely on the IT staff at the Centers for Medicare and Medicaid Services to manage the contractors and oversee the final integration of the new system. Free-market ideologues will reflexively see in this failure further evidence of the inherent inferiority of public-sector workers. In truth, it is evidence of how outdated civil service rules and ill-conceived caps on the size and pay of the federal workforce have eroded the government’s ability to perform even essential government tasks.

Keep reading this article at: http://www.washingtonpost.com/business/the-federal-outsourcing-boom-and-why-its-failing-americans/2014/01/31/21d03c40-8914-11e3-833c-33098f9e5267_story.html

Filed Under: Government Contracting News Tagged With: background check, background investigation, DHS, FBI, HHS, IDIQ, inherently governmental functions, NSA, outsourcing

January 29, 2014 By AMK

Top contractor for background checks charged with fraud

The contractor that performed federal background checks on such headline personalities as National Security Agency leaker Edward Snowden and Navy Yard shooter Aaron Alexis has been accused of fraud by the Justice Department.

Falls Church, Va.,-based USIS, which had already been the subject of a False Claims Act suit filed by former employee Blake Percival, drew the intervention from Justice’s Civil Division because it “failed to perform quality control reviews in connection with its background investigations for the U.S. Office of Personnel Management,” Justice said in a complaint filed Wednesday.

Under the False Claims Act’s qui tam, or whistleblower provisions, a private party is eligible to sue on the government’s behalf and may receive a financial settlement. After a preliminary investigation of Percival’s claims, the department asked a U.S. District Court in Alabama to allow it to file its own complaint against USIS by Jan. 22, 2014.

“We will not tolerate shortcuts taken by companies that we have entrusted with vetting individuals to be given access to our country’s sensitive and secret information,” Assistant Attorney General Stuart Delery said in the complaint, which was prepared last fall. “The Justice Department will take action against those who charge the taxpayers for services they failed to provide, especially when their nonperformance could place our country’s security at risk.”

Keep reading this article at: http://www.govexec.com/contracting/2014/01/top-contractor-background-checks-charged-fraud/77453/?oref=govexec_today_nl

Filed Under: Government Contracting News Tagged With: audit, background investigation, contractor performance, False Claims Act, fraud, Justice Dept., Navy, NSA, OPM, performance, whistleblower

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