The Contracting Education Academy

Contracting Academy Logo
You are here: Home / Archives for OIG

By

ATF rushed sole-source contracts without market research, watchdog finds

In its efforts to meet small business contracting goals, the Bureau of Alcohol, Tobacco, Firearms and Explosives neglected proper market research and record-keeping before awarding sole-source contracts, a watchdog found.

“Proper documentation is necessary to show that ATF safeguarded federal funds, furthered the purpose of small business programs, and complied with sole-source contracting authorities,” wrote the Justice Department inspector general in a report released on March 14th.

“ATF did not maintain complete contract files and could not demonstrate that it had conducted required market research before awarding several sole-source contracts,” auditors found in a review of 16 sole-source contracts totaling $56 million to nine small businesses in 2016-2017.

Keep reading this article at: https://www.govexec.com/contracting/2019/03/atf-rushed-sole-source-contracts-without-market-research-watchdog-finds/155640/

By

IRS wasted $3.4 million on software it never used, watchdog says

IT management shortcomings led the IRS to waste millions of dollars on licenses and subscriptions for software agency officials never used, according to an internal watchdog.

Because it failed to follow federal acquisition requirements, the agency also deployed a software product that fell far short of its promised functionality, auditors said.

In a recent report, the Treasury Inspector General for Tax Administration found the IRS didn’t actively manage its IT assets or monitor the cost of the myriad software subscription and support packages used across the enterprise. As a result, the agency spent roughly $3.4 million between 2015 and 2017 on tools it didn’t need, auditors said.

They also found insufficient management caused the agency to lean too heavily on a separate package of software tools, which put it at risk of penalties and fines from the vendor, IBM.

Keep reading this article at: https://www.nextgov.com/it-modernization/2019/03/irs-wasted-34-million-software-it-never-used-watchdog-says/155247/

By

Oversight of U.S. military’s food suppliers called into question after fraud indictment

Executives from a company responsible for providing food and water for deployed U.S. troops in Afghanistan have been charged with defrauding the government and creating a fake construction site to overstate progress on an $8 billion contract, the Justice Department said in a recently filed indictment.

The allegations came four years after the company’s predecessor pleaded guilty to criminal charges that it inflated prices for basic items that it sold to the U.S. military. Both cases emphasize how the U.S. military has struggled to curb abuses of U.S. defense spending in America’s longest-running foreign war as the U.S. military presence in Afghanistan enters its 17th year, analysts said.

On Nov. 27, the Justice Department charged Abdul Huda Farouki, Mazen Farouki and Salah Maarouf — three Virginia residents who worked with a Dubai-based company called Anham Fzco — with defrauding the U.S. military under an estimated $8 billion military supply contract.

Keep reading this article at: https://www.washingtonpost.com/business/2018/12/08/oversight-us-militarys-food-suppliers-called-into-question-after-fraud-indictment/

By

VA official charged with taking bribes to help associates rig federal contracting process

Three men were arrested in Colorado on Wednesday of this week pursuant to warrants issued in connection with an indictment charging them with conspiring to pay and receive bribes in exchange for creating an opportunity to commit a fraud against the U.S.  Department of Veterans Affairs (VA). 

The defendants are also charged with paying and receiving bribes, or aiding and abetting the payment of bribes.

Dwane Nevins, a VA contracting official at the time of the alleged crimes, was separately charged in another count with extortion under color of official right and in two counts with violating the federal conflict of interest statute.

The following is alleged in the indictment:

  • Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by 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 allegedly explained, they 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.

The indictment also alleges that, 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 allegedly 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?”

The indictment alleges that the conspirators attempted to rig the process related to two particular contracts, both of which related to medical equipment and not to the construction of any VA facilities.  The first contract related to the procurement of LC bead particle embolization products by a VA hospital in Salt Lake City, and the second contract related to the procurement of durable medical equipment for VA facilities located throughout the region.

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

Readers are reminded that the defendants are presumed innocent unless and until proven guilty in a court of law.

By

GSA contractors working without completed security clearances

The recent revelation that the Government Services Agency (GSA) Federal Acquisition Service (FAS) permitted employees of a government contractor to work without a completed basic National Agency Check with Written Inquiries (NACI) clearance brings into question the entire process.

The inappropriateness of allowing contract personnel to perform duties prior to their being cleared to do so is troublesome.

The fact that FAS allowed several workers to slip through the system, including at least one instance which occurred after they had received an admonishment to take corrective action, makes one scratch their head.

The GSA’s Office of Inspector General (OIG) was direct in their admonishment:

“We found that FAS has not ensured that contract employees receive favorable background investigation determinations before providing them with access to sensitive government information, systems, and facilities.”

The OIG continued that allowing contract employees to work without the completed determinations put both FAS and its customers at risk.

Keep reading this article at: https://news.clearancejobs.com/2018/07/07/gsa-contractors-working-without-completed-security-clearances/

 

Contracting Academy Logo
75 Fifth Street, NW, Suite 300
Atlanta, GA 30308
info@ContractingAcademy.gatech.edu
Phone: 404-894-6109
Fax: 404-410-6885

RSS Twitter