conflict of interest | The Contracting Education Academy

March 6, 2020 By cs

Contracting official sentenced to 18 months in federal prison for role in bribery scheme to rig VA contracts

U.S. Department of Veterans Affairs official Dwane Nevins has been sentenced to serve 18 months in federal prison, followed by three years of supervised release, for corruption offenses. He took cash bribes and then extorted undercover small business owners so that he could have his “Christmas.”

We first reported on the allegations against Nevins in September 2018. Then, in January of this year, we reported on the sentencing of a businessman who conspired with Nevins. Sentencing of one more individual in this case is scheduled later this month.

According to Court records, Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by co-defendants Robert Revis, Anthony Bueno, and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA.

Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno put it, the conspirators would then “own all the dogs on the track.”
Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting. At one of those sham trainings in Las Vegas, Nevada, Nevins accepted a $4,500 cash bribe from the undercover FBI agent.

After complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also told the undercover FBI agent “this is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”

Anthony Bueno was previously sentenced in this case to 30 months imprisonment. He was also sentenced to 63 months imprisonment for his role in a separately indicted wire fraud scheme in which he used false representations about investment opportunities to take over a million dollars from several victims.

Robert Revis pleaded guilty in April 2019 to an Information charging him with a single count of supplementing the salary of a federal official. His sentencing hearing is scheduled for March 2, 2020.

Source: https://www.justice.gov/usao-co/pr/former-veterans-affairs-official-sentenced-18-months-federal-prison-role-bribery-scheme

January 20, 2020 By cs

Businessman who tried to ‘own every dog on the track’ sentenced for conspiring to bribe VA contract specialist

The Justice Department announced in Denver last week the sentencing of a businessman who engaged in a conspiracy with a Veterans Affairs’ contracting official to manipulate contract awards to benefit a consulting company that purportedly represented service-disabled veteran owned small businesses.

Anthony Bueno was sentenced to serve 30 months in federal prison, followed by 3 years of supervised release, for his role in a conspiracy to bribe a VA official so that clients of his company would gain an unfair advantage in the VA contracting process. Bueno was remanded into custody immediately after the sentencing hearing.

The VA’s contracting official, Dwane Nevins, previously pleaded guilty in September 2019 to every count of an indictment charging him with this scheme, including counts of conspiracy, receiving bribes, extortion, and criminal conflicts of interests. He is scheduled to be sentenced on February 19, 2020.

According to court records:

Bueno and his business partner, Robert Revis, agreed to help an undercover FBI agent, who was posing as a veteran and small business owner, bribe Nevins, a contracting specialist at the VA’s Network Contracting Office in Colorado.
As part of the bribery scheme, Bueno and Revis, working with Nevins, agreed to submit bids from small businesses owned by veterans disabled during military service (one of whom was the undercover FBI agent) under contract with Buenon and Revis’ consulting company so that federal contracts would be set aside for only those companies.
As Bueno explained to the undercover agent, the conspirators would then “own all the dogs on the track,” meaning their clients were guaranteed to get the contracts.
Bueno, Revis and Nevins worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to the consulting company, or by asking the consulting company’s clients to pay Nevins directly for sham training classes related to federal contracting.

Robert Revis pleaded guilty in April 2019 to an Information charging him with a single count of supplementing the salary of a federal official. His sentencing hearing is scheduled for March 2, 2020. Bueno pleaded guilty on September 17, 2019.

Bueno has also pleaded guilty to conspiring to launder money arising from a completely separate wire fraud scheme in which he used false representations about investment opportunities to take over a million dollars from several victims. Sentencing in that case, pending before United States District Judge William J. Martinez, is scheduled for January 23, 2019.

The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, with substantial assistance from the U.S. Small Business Administration Office of Inspector General.

Source: https://www.justice.gov/usao-co/pr/businessman-sentenced-two-and-half-years-imprisonment-conspiring-bribe-veterans-affairs

January 8, 2020 By cs

Time to end Oracle’s long legal fight against JEDI cloud contract, government says

Government attorneys are telling a federal appeals court that it should rule against Oracle in its long-running legal challenge to the Pentagon’s JEDI Cloud contract — partly because some of Oracle’s legal claims are now beside the point.

Oracle is seeking to overturn a lower court ruling that found the Defense Department was on solid legal footing when it structured the multibillion dollar cloud contract. The company claims the Court of Federal Claims made “grave” errors in its ruling, including by brushing aside what Oracle alleges were serious conflicts of interest involving DoD employees and Amazon Web Services.

But in a response the government filed with the appellate court on Dec. 26, attorneys said any alleged improprieties surrounding AWS are now moot because of the Pentagon’s surprise decision in October to pick Microsoft, not Amazon, as the winner of the JEDI contract.

“Indeed, Oracle requested that AWS be eliminated from the JEDI competition, and DoD has effectively granted this relief, albeit for different reasons, by the award to Microsoft,” DoD and Justice Department attorneys wrote in their brief to the Court of Appeals for the Federal Circuit. “Accordingly, the court could not presently grant relief that would redress the alleged errors.”

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/01/time-to-end-oracles-long-legal-fight-against-jedi-cloud-contract-government-says/

November 18, 2019 By cs

The Pentagon’s climate problem

The defense acquisition community faces a climate problem — a political climate of suspicion is impeding the Pentagon’s efforts to take advantage of private industry expertise to deliver important capabilities to America’s warfighters.

Secretary of Defense Mark Esper called out the delegitimizing and debilitating nature of the climate of suspicion when, during his confirmation hearing, he observed: “I think the presumption is, for some reason, anybody who comes from the business or the corporate world is corrupt.” This phenomenon contributes to unnecessary delays to critical contract awards, discourages recruitment of leaders with industry experience, and deters strategic collaboration with industry partners.

Government faces a growing need for access to technologies at the frontier of innovation, requiring greater reliance on engagement with private sector innovators to deliver these tools. Although legitimate concerns about conflicts of interest should always receive fair hearing, when taken to extremes, they become detrimental to sound national security policy.

The controversy over the awarding of the Joint Enterprise Defense Infrastructure, or JEDI, contract illustrates how the current climate of suspicion can undermine national defense programs. The JEDI cloud will act as a centralized cloud computing service for all of the Defense Department’s unclassified, classified and top-secret information. The contract will offer its eventual awardee revenue of up to $10 billion over 10 years. With such a lucrative deal up for grabs, the award process has become contentious, including allegations of bias in the award decision. Most prominently, Oracle Corp. filed a lawsuit against the department claiming that conflicts of interest by recently hired Pentagon procurement personnel previously employed by Amazon Web Services — the widely speculated favorite to win the JEDI contract award — prejudicially affected the procurement.

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2019/11/5/the-pentagons-climate-problem

Government attorneys are telling a federal appeals court that it should rule against Oracle in its long-running legal challenge to the Pentagon’s JEDI Cloud contract — partly because some of Oracle’s legal claims are now beside the point.

The defense acquisition community faces a climate problem — a political climate of suspicion is impeding the Pentagon’s efforts to take advantage of private industry expertise to deliver important capabilities to America’s warfighters.

Defense Secretary Mark Esper has removed himself from decision-making on a cloud computing contract potentially worth $10 billion, citing his son’s employment with one of the original contract bidders.

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