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Vern Edwards

Contracting Scandals

15 posts in this topic

The so-called "Fat Leonard" scandal of Navy contracting for ship husbanding is one of the worst contracting scandals in American history.

http://www.washingtonpost.com/sf/investigative/2016/05/27/the-man-who-seduced-the-7th-fleet/

The scandal is still playing out, as you can see from today's announcement by the Department of Justice:

See https://www.justice.gov/usao-sdca/pr/navy-commander-charged-part-corrupt-brotherhood-accepted-luxury-travel-and-prostitutes

See also https://www.justice.gov/opa/pr/former-supervisory-contracting-officer-arrested-navy-bribery-scandal

And http://www.nytimes.com/2013/11/30/us/scandal-widens-over-contracts-for-navy-work.html

If you check Wifcon's home page regularly under the "News" heading you will have noticed a number of reports about fraud and bribery in contracting associated with the wars in Iraq and Afghanistan. Quite a few people have gone to jail. 

Some of you will remember the Darleen Druyun scandal. That happened fairly recently, but there has been a lot of misinformation about it. Here is a reliable, comprehensive report:

http://www.dtic.mil/dtic/tr/fulltext/u2/a437374.pdf

Before Darleen Druyun the biggest contracting scandal in the last 50 years was dubbed "Operation Ill Wind." It was major and led to convictions of an assistant secretary of the Navy, 40 executives, and 13 corporations and passage of the Procurement Integrity Act.

Here is a link to a master's thesis by Airon Ann Mothershed entitled, Perception Is Reality. Or is it? A Case Study of Four Department of Defense (DoD) Procurement Scandals. Does Media Coverage Lead to Procurement Reform? The author concludes that "when the public‟s reactions to scandal are negative and strong, last long enough, and result in public pressure, such media coverage may indirectly lead to lasting reform of faulty processes."

 

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Meanwhile. the heirs of von Steuben at the DoD OIG focus their attention on blaming contracting officers for not dispositioning DCAA audit reports quickly enough.

http://www.dodig.mil/pubs/report_summary.cfm?id=7287

 

 

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There is another entry to the Fat Leonard story.

Also, try the one below for disgust.

Quote

Defense Contractor Pleads Guilty to Stealing Medical Equipment Intended to be Shipped to Deployed Marines

Both are on the Home Page.

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This is a case where Fat shaming is appropriate!

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This is a serious case. We are very dependent on our military, not only to keep our country safe, but also to serve in important civilian appointee positions, as demonstrated by the Trump administration. We are in serious trouble if we cannot rely on their integrity. It makes me wonder what they're teaching at the national military academies. The admiral who has been indicted is a graduate of the U.S. Naval Academy.

Of course, innocent until proven guilty.

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A very serious case that, perhaps, could have been avoided, or identified earlier, if the Navy had implemented the appropriate system for monitoring husbanding contracts.

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Is it just me, or is this scandal getting relatively little fanfare given its overall size and how many high-ranking civilians/military officers were ensnared by it?  I've talked to typically informed folks outside of the government who are apparently completely unaware of this scandal, yet they were able to tell me all about the GSA conference scandal from a few years back.

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I think the news media are obsessed by something else at the moment.

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22 hours ago, napolik said:

A very serious case that, perhaps, could have been avoided, or identified earlier, if the Navy had implemented the appropriate system for monitoring husbanding contracts.

I think the Navy's business system should be determined to be inadequate and a 5% payment withhold should be implemented until an acceptable corrective action plan is submitted.

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Here is the case that I brought up to my leadership and was ignored so I resigned my the civil service position for a position in industry:

https://www.justice.gov/archive/usao/ma/news/2010/July/THROWERverdictPR.html

After I left the Army HQ CID folks found the CD with all the needed information for their case in a blank envelope stapled to the contract file.  The person who took over my desk when I resigned told me that the KO pulled all the paper documents out of the file and shredded them.  The amount that was defrauded by the perps was somewhere north of the amount in the story.  I was told by the investigator who called me more than a year after I resigned the amount stolen was closer to $50M than it was to $4 mil but they had enough to put him away so they stopped investigating.  The contract I was working on was $1.5M and the perp had more than 3 fraudulent contracts in place with similar award amounts at that time alone.

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Thanks for your efforts, DW. 

I found an earlier thread where you introduced this scandal:

http://www.wifcon.com/discussion/index.php?/topic/3059-why-should-contracting-personnel-see-what-they-are-buying/#comment-27153

You said that the KO was allowed to retire. Too bad...

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Joel,

Karma played out in the end for the KO, he died less than 6 months after retiring when he had a heart attack while gardening in his back yard.  He wasn't a bad guy to work for but he was a coward when it came to standing up to the bully that was committing the crime.  I think it weighed heavily on his heart and spirit what he had failed to handle properly, which is a heavy burden for sure.

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Yes, that is sad. I probably owe him some compassion for his misfortunes. I had the impression that he was an active player in the scheme. Even so, death is a severe consequence...

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