ethics | The Contracting Education Academy

October 25, 2019 By cs

Government answers FAQs about feds attending conferences

Federal employees traveling to conferences now have some clarity about whether accepting registration fees is considered an in-kind payment.

The Office of Governmentwide Policy issued new regulations stating it is not an in-kind payment if a federal employee receives a waived or discounted registration fee while participating as a speaker, panelist, or presenter.

Therefore, the waived and discounted registration fees will not need to be reported to the Office of Government Ethics.

Read article and listen to audio podcast at: https://federalnewsnetwork.com/federal-newscast/2019/10/government-answers-faqs-about-feds-attending-conferences/

October 21, 2019 By cs

The insidious threat of pay to play

The government contracting world is deeply vulnerable to fraud, says a former federal investigator.

News that a former FEMA administrator was arrested recently for taking bribes from a contractor — one who landed $1.8 billion in federal contracts to repair Puerto Rico’s electrical grid after Hurricane Maria — was hardly surprising to those of us who work in fraud risk management.

Why? Because, unfortunately, the government contracting world is deeply vulnerable to fraud. Given the huge amounts of money at stake and the power that federal officials have in deciding winners and losers among contractors, this dynamic can lead to a “pay to play” scenario among the less ethical on both sides of the contracting relationship.

The volume and similarity of government corruption cases are striking. In the most recent FEMA case, the contractor provided the government official with helicopter rides, hotel accommodations, first-class airfare, and the use of a credit card in exchange for choosing his company to repair Puerto Rico’s electrical grid. Last year, charges were brought against the defense contractors who allegedly provided Navy officials with gifts and luxury items that included cash, checks, retail gift cards and flat-screen televisions in return for $6 million in government contracts.

Keep reading this article at: https://www.govexec.com/management/2019/09/insidious-threat-pay-play/159935/

May 6, 2019 By AMK

Despite the ‘potential ethical violations,’ JEDI contract moves forward

In the wake of an ethics investigation, Pentagon officials have selected two cloud service providers to move forward as potential candidates in the Department of Defense’s $10 billion Joint Enterprise Defense Initiative cloud services contract.

The selection of those providers, Amazon Web Services and Microsoft, came after an Oracle lawsuit challenging the legality of the JEDI contract process was put on hold in February to allow DoD to investigate previously unknown information about conflicts of interest.

“The department’s investigation has determined that there is no adverse impact on the integrity of the acquisition process,” DoD spokesperson Elissa Smith in a statement.

“However, the investigation also uncovered potential ethical violations, which have been further referred to DoD [inspector general]. There are two different components of the investigation. First, DoD investigated potential conflicts of interest as they relate to the acquisition process. This portion of the investigation determined that there are no conflicts of interest that affected the integrity of the acquisition process. However, there may be potential ethical violations, which have been referred to DoD IG for further investigation.”

Keep reading article at: https://www.federaltimes.com/acquisition/2019/04/11/despite-the-potential-ethical-violations-jedi-moves-forward/

April 25, 2019 By AMK

State Dept. contracting officer indicted for bribery and procurement fraud

A 17-count indictment was unsealed today charging Zaldy N. Sabino, a contracting officer with the U.S. Department of State, with conspiracy, bribery, honest services wire fraud, and making false statements.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Inspector General Steve A. Linick of the U.S. Department of State and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.

According to the indictment, between November 2012 and early 2017, Sabino and the owner of a Turkish construction firm allegedly engaged in a bribery and procurement fraud scheme in which Sabino received at least $239,300 in cash payments from the Turkish owner while Sabino supervised multi-million dollar construction contracts awarded to the Turkish owner’s business partners and while Sabino made over a half million in structured cash deposits into his personal bank accounts. Sabino allegedly concealed his unlawful relationship by, among other things, making false statements on financial disclosure forms and during his background reinvestigation.

Keep reading this article at: https://www.justice.gov/opa/pr/state-department-contracting-officer-indicted-bribery-and-procurement-fraud

February 14, 2019 By AMK

Former COR sentenced to 5 years in prison for conspiracy and bribery

Jerry T. Vertefeuille of Niceville, Florida was sentenced on Feb. 12th to 60 months in prison. Co-defendant Christopher A. Carter of Fort Walton Beach, Florida is scheduled to be sentenced on February 15th.

Vertefeuille pleaded guilty to conspiracy (to commit theft of honest services and wire fraud), bribery of a public official, and obtaining and disclosing procurement information.

Vertefeuille was a federal Contracting Officer Representative (COR) for the 96 Test Wing Maintenance Group (96 MXG) at Eglin Air Force Base. His duties included overseeing maintenance work and initially approving purchases and invoices.

In 2007, Vertefeuille helped Carter, as the owner of TCC Services, Unlimited, LLC, win a paint booth maintenance contract, as well as multiple contract renewals. Vertefeuille received kickbacks in exchange for approving Carter’s fraudulent invoices and recommending the renewal of TCC’s contract.

U.S. Attorney Keefe said: “Public corruption is an attack on the rule of law, which is the mission of the Department of Justice and the cornerstone of American government. The U.S. Attorney’s Office, along with local, state, and federal law enforcement agencies, is committed to upholding the public’s faith in honest services and enforcing high ethical standards.”

“Corruption in the government procurement process damages the public trust and ultimately degrades the warfighting mission of the Department of Defense,” commented Special Agent in Charge John F. Khin with the southeast field office of the Defense Criminal Investigative Service (DCIS). “DCIS, along with our investigative partners, remains committed to pursuing and bringing to justice anyone who uses fraud and deception to undermine the critical missions of the Department of Defense and the safety of our communities.”

Source: https://www.justice.gov/usao-ndfl/pr/former-government-contracting-officer-representative-sentenced-60-months-prison

Federal employees traveling to conferences now have some clarity about whether accepting registration fees is considered an in-kind payment.

The government contracting world is deeply vulnerable to fraud, says a former federal investigator.

In the wake of an ethics investigation, Pentagon officials have selected two cloud service providers to move forward as potential candidates in the Department of Defense’s $10 billion Joint Enterprise Defense Initiative cloud services contract.

A 17-count indictment was unsealed today charging Zaldy N. Sabino, a contracting officer with the U.S. Department of State, with conspiracy, bribery, honest services wire fraud, and making false statements.

Jerry T. Vertefeuille of Niceville, Florida was sentenced on Feb. 12th to 60 months in prison. Co-defendant Christopher A. Carter of Fort Walton Beach, Florida is scheduled to be sentenced on February 15th.

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