September 14 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.
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Army Watchdogs To Examine War Contracting Practices Army Secretary Pete Geren has ordered two reviews of contracting in the Iraq-Afghanistan theater after investigators alleged some personnel in the Kuwait contracting office have taken bribes. The Army said 20 of its military and civilian employees have been indicted on charges of contract fraud. An Army major and members of his family have been charged with receiving $9.6 million in bribes. Another contracting officer assigned to the Kuwait office killed herself after she admitted taking $225,000 in bribes, according to published reports. Geren said an internal task force will review the Kuwait contracting operation to see if the alleged criminal behavior is part of a systemic problem. The office awarded nearly $1 billion in contracts in 2006. “The Army Task Force will take an intensive look at current operations and implement reforms and corrections immediately,” Geren said. “Based on earlier findings, the Army already has taken several actions and will continue to implement a number of recommendations, including transferring contracting authority for major contracts from Kuwait to Army Materiel Command, reviewing past contract actions and establishing Requirements and Contract Teams in Kuwait by September 30.” The secretary also named a Special Commission on Army Contracting to examine wartime procurement practices and recommend improvements. The commission is headed by Jacques Gansler, who was undersecretary of defense for acquisition, technology and logistics.in the Clinton administration. “The Commission will take a big picture look and ensure we are properly organized to support Army and Joint Force expeditionary operations in an era of persistent conflict,” Geren said. “The Commission will look at how we currently are doing things and how we should be doing things, and examine policies and procedures in the world of contracting and logistics - even the way we promote those who are serving in our contracting forces.” He said the group will report its findings by mid-October.
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