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Air Force Scandal: IG To Review More Contracts

The Defense Department’s inspector general will review eight more contracts worth nearly $3 billion that were handled by convicted former Air Force acquisition official Darlene Druyun.

The Defense Contract Management Agency examined 407 contracts that crossed Druyun’s desk during her nine years as deputy chief of acquisition and found “anomalies” in eight of them, said Michael Wynne, Acting undersecretary of defense for acquisitions, technology and logistics. However, he did not refer the contracts for criminal investigation.

Druyun admitted giving favorable treatment to Boeing Co. because Boeing hired her daughter, son-in-law and eventually Druyun herself. She is serving a nine-month prison sentence.

The Defense Department said four of the eight contracts under scrutiny went to Boeing: a $400 million polar satellite sensor system, a $244 million C-40 transport lease program, a $62 million C-22 transport replacement program and a $1.5 billion contract for maintenance of aerial refueling tankers maintenance that Boeing shared with Pemco Aviation Group.

Others referred to the IG were a C-5 aircraft modernization award and an F-16 contract with Lockheed Martin; a contract with Andersen Consulting, now known as Accenture; and a logistics contract with Systems and Electronics Inc.

“These were areas where they felt like the process was either sped up, interrupted, or unduly influenced by Darlene,” Wynne told reporters Feb. 14. If the IG finds irregularities, losing bidders will be invited to file protests, he added.

Seven other contracts handled by Druyun were already being examined by the IG and the Government Accountability Office. GAO is also considering protests over contracts awarded to Boeing that Druyun acknowledged might not have been fairly decided, including a $4 billion upgrade of C-130 transport aircraft.

DOD said the Defense Science Board is conducting a broad review of acquisition practices and will report its findings next month.

When she was sentenced in Alexandria, VA, federal court in October, Druyun admitted she contacted Boeing executives about jobs for her daughter and future son-in-law in 2000; both were hired by the company. She acknowledged she was negotiating with Boeing for a $250,000-a-year job at the same time she was supervising the Air Force’s negotiations over a $23 billion tanker lease deal with the company. The lease deal has been canceled.

Boeing’s former chief financial officer, Michael Sears, who hired Druyun, was scheduled to be sentenced Feb. 18 for his part in the conspiracy.


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