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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

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Son of Pentagon chief works at company that bid for contract

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.

In a written statement last week, Pentagon spokesman Jonathan Hoffman said Esper recused himself from decisions on the so-called JEDI contract “out of an abundance of caution to avoid any concerns regarding his impartiality.”

The Pentagon is in the final stages of determining the winner of the initial $1 million Joint Enterprise Defense Infrastructure, or JEDI, contract, which could be worth as much as $10 billion over 10 years if all options are exercised.

Hoffman did not identify Esper’s son by name. His son Luke is identified on his Linked-In page as a “digital strategy consultant” at IBM, which was an original bidder for the JEDI contract.

IBM was dropped from the competition, along with Oracle, and both companies have complained that the contracting process is rigged in favor of Amazon Web Services Inc., a division of Amazon.
Keep reading this article at: https://federalnewsnetwork.com/defense-industry/2019/10/son-of-pentagon-chief-works-at-company-that-bid-for-contract/

 

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DoD’s IG clarifies JEDI involvement

The Defense Department Inspector General’s office sought to clear up confusion regarding its review of the Joint Enterprise Defense Infrastructure contract Tuesday, offering reporters a public statement days after Defense officials referenced the IG in statements to the press.

The IG is reviewing complaints about JEDI from multiple sources, including a referral months ago from the Defense Department.

“The DoD OIG has assembled a multidisciplinary team of auditors, investigators, and attorneys to review matters related to the Joint Enterprise Defense Infrastructure Cloud program that were referred to us by members of Congress and through the DoD Hotline,” said Dwrena Allen, spokesperson for the Defense Department OIG. “We are reviewing the DoD’s handing of the JEDI cloud acquisition, including the development of requirements and the request for proposal process. In addition, we are investigating whether current or former DoD officials committed misconduct relating to the JEDI acquisition, such as whether any had any conflicts of interest related to their involvement in the acquisition process.”

Keep reading this article at: https://www.nextgov.com/it-modernization/2019/08/defense-department-inspector-general-clarifies-jedi-involvement/159143/

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Pentagon investigating whether Amazon employee tilted JEDI contract

The Defense Department will review whether a former employee—who now works at Amazon Web Services—improperly impacted the integrity of its $10 billion JEDI cloud contract.

The conflict of interest investigation comes approximately one month before the Pentagon was set to award the $10 billion contract—to host, analyze and process swaths of classified and sensitive military data—to one of four competing companies: AWS, Microsoft, IBM or Oracle.

In a partially redacted court filing released Friday in Oracle’s suit against the Defense Department, government lawyers explained their motion to stay—or delay—the case stemmed from “new information” regarding “possible conflicts of interest involving former DoD employee, Deap Ubhi.”

Ubhi worked in the Pentagon’s Defense Digital Service for almost two years in between jobs at Amazon Web Services.

Keep reading this article at: https://www.nextgov.com/it-modernization/2019/02/pentagon-investigating-whether-amazon-employee-tilted-jedi-contract/155118/

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$110,000 settlement reached with tech company and CEO to resolve allegations of false claims on Defense contract

The U.S. Attorney for the District of Colorado, has announced that Progressive Technology Federal Systems, Inc. and its Chief Executive Officer have paid a combined $110,000 to settle allegations that the corporation and its CEO made false statements concerning a consultant’s security clearance and failed to disclose an organizational conflict of interest when bidding on a defense procurement contract. 

One way federal government agencies can buy information technology services is by working with the National Institutes of Health’s Information Technology Acquisition and Assessment Center (NITAAC).   NITAAC is a government-wide program that enables agencies to contract for information technology.  Other federal agencies, including the military, regularly work with NITAAC.

The United States’ allegations relate to a project in which NITAAC was used by the Army and the Air Force for a contract that was awarded to Progressive Technology Federal Systems, Inc. (PTFS).   The United States contends that in 2014, PTFS’s President and CEO, John Yokley, participated in preparing project specifications for a contract to be issued by NITAAC.  The project then was offered by NITAAC for contract bids.  PTFS then submitted its own proposal to take on the contract.  In doing so, however, PTFS stated that it had no conflict of interest relating to the contract.  This statement was false because PTFS had a conflict in that Mr. Yokley had provided input on project specifications that were included in the contract, thereby gaining a competitive advantage for PTFS.  In addition, the project required security clearances, and PTFS falsely stated in its proposal that an individual who would participate in the project as a key “Subject Matter Expert” had an active Top Secret clearance.  PTFS was awarded the contract.  Funding for the contract was later terminated before PTFS could invoice more than $30,000.  The United States claimed that this conduct violated the False Claims Act.

The claims settled by this agreement are allegations.  In entering into this civil settlement, PTFS and Mr. Yokley did not admit liability.  Under the agreement, PTFS paid $65,000, and Mr. Yokley paid $45,000, to resolve the allegations.

Source: https://www.justice.gov/usao-co/pr/us-attorney-announces-110000-settlement-tech-company-and-its-ceo-resolve-allegations

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