Navy, GSA Say Contract Led to Waste, Maybe Fraud

[maddezmom]

Source: Washington Post

By Robert O'Harrow Jr.
Washington Post Staff Writer
Thursday, June 7, 2007; Page D01

An effort to buy floating barriers to protect the nation's fleet from attacks several years ago led to millions of dollars in waste and may have involved criminal fraud by a government employee and contractor, officials of the Navy and the U.S. General Services Administration told a House subcommittee yesterday.

The hearing followed a Washington Post report detailing how the Naval Criminal Investigative Service, the GSA and contractors worked together to sidestep rules designed to protect taxpayer money.

Invoices and other documents show that officials at the NCIS, which was responsible for the barrier project, directed the GSA to hire a favored contractor and subcontractor. Those companies did little significant work on the barriers but took at least $3.6 million in fees, according to audit documents.

With cooperation from the Navy and the GSA, the contractors also kept dozens of invoices below a $3 million threshold to avoid competition on a total of $53 million worth of work reviewed by the GSA inspector general's office, audit documents show.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/06/06/AR2007060602533.html

[salin]

1. I hope that Congress considers passing into law

the Clinton era executive order - later voided by bush - that prevents contractors who defraud the government from being able to get any federal contracts for three (?) years.

[annabanana]

2. "floating barriers" ???

Floating Barriers? How could this not be a boondoggle? It sounds like it was invented over a few brewskis back at the frat house...