Budget cuts might force GSA to cancel all new construction. Administrator Martha Johnson warned, “No new buildings in our future if you really look hard at the numbers,” the newspaper Federal Times reported.

The agency’s new construction budget was slashed by 90% this year, and the pending 2012 appropriations call for deeper cuts. Funding for renovation has also shrunk dramatically.

Speaking at a conference in Washington, Johnson said the government is not on a diet; it’s more like “having our stomach stapled.”

The Justice Department says 11 federal employees and contractors have pleaded guilty in a series of bribery and kickback cases involving GSA contracts in the National Capital area.

The cases against seven GSA employees and four contractors grew out of a five-year investigation by the GSA inspector general and the FBI. Inspector General Brian Miller said, “The breadth of this network suggests that some officials believe it is okay to line their own pockets at the expense of taxpayers.”

In the latest case, a GSA customer service manager was sentenced to two-and-a-half years in prison after he pleaded guilty to accepting bribes. Prosecutors said Eric Minor awarded small construction and maintenance contracts, and paid for them with his government purchase card. He received about $118,000 in kickbacks over three years.

According to the Washington Post, U.S. District Judge Ricardo Urbina asked Minor why he did it. Minor replied, “Stupidity, your honor.”

A former Air Force program manager has pleaded guilty to accepting bribes from a contractor at Hill Air Force Base, UT. The Justice Department said Jose Mendez of Farr West, UT, was offered more than $1 million in cash and benefits to steer contracts to Atlas International Trading Company of Sarasota, FL.

The owners of Atlas, Sylvester and Maria Zugrav, have been charged and are awaiting trial.

Mendez admitted he disclosed competitors’ bid information to help Atlas win contracts. He pleaded guilty to one count each of conspiracy, bribery and procurement fraud. He is schedule to be sentenced in February.

The Federal Communications Commission is creating a Small Biz Cyber Planner, a free online tool that will help small businesses protect themselves from cybersecurity threats.

FCC Chairman Julius Genachowski said it will be released in a few weeks. “With larger companies increasing their protections, small businesses are now the low hanging fruit for cyber criminals,” Genachowski said at a kickoff event in Washington Oct. 24.

The planner will help a small firm create a customized plan tailored to its cybersecurity needs, by answering a few basic questions, such as “Does your business use credit cards?” or “Does your business have a public website?”

Another story of “price gouging” by a government contractor bites the dust. The Justice Department’s inspector general reported in September that the department paid $16.80 per muffin served at a conference at the Capitol Hilton Hotel in Washington. That touched off a furor of complaints about extravagant spending in a time of austerity.

On Oct. 28 the IG corrected its report. Turns out the $16.80 per-person charge paid for a full continental breakfast, including fruit, coffee, tea and juice, plus tax and service charges.

Acting Inspector General Cynthia A. Schnedar wrote in a revised report, “The department did not pay $16 per muffin.”

The IG said that does not change her finding that Justice spends too much on conferences—including a $76-per-person lunch at a Hilton Hotel in San Francisco. The department is reviewing its conference spending.