Suspended vendors retain DOD awards

      The Defense Dept. has overriden contractor suspensions citing a “compelling reason” at least 22 times since 2008, according to a new study by Bloomberg Government.

      The suspended contractors, including Boeing Co., BP PLC, and IBM, had been accused or convicted of bribery, fraud, theft and other crimes and suspended from doing business with the government.

      Under a 1981 law, DOD is allowed to waive suspensions to fulfill or expand contracts with suspended vendors if there is a “compelling reason” to do so.

      In the most recent case, a waiver was granted to SK Engineering & Construction Co., which had been suspended for allegedly bribing an Army contracting official and another man to deliver a $420 million construction contract at a US base near Seoul.

      However, the Army agreed to extend SK’s contract, saying construction delays would affect ambulance response to the base.

      Only 30 such waivers have been approved since the law allowing the overrides was passed in 1981.

More information: Bloomberg study: https://bit.ly/2w18JJh

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Suspended vendors retain DOD awards

Column: SubNet - Where’s the Beef?

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