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IG: Procurement Laws Flouted at Mine Safety Agency

The Labor Department’s inspector general has recommended that the Mine Safety and Health Administration be stripped of its procurement authority, after an audit documented what the IG called “an environment that allowed, or at the very least, gave the appearance of allowing contract awards based on favoritism or convenience.”

The auditors found apparent conflicts of interest, improper use of sole-source contracts and other violations of procurement laws and regulations during the period from June 2000 through December 2002. But the report says the improper practices have not been corrected.

The report says MSHA’s management “accepted and fostered a lack of commitment to procurement laws and principles.” It says program managers made many procurement decisions and forced contracting officers to go along. Contracting officers “were not always allowed to do their jobs, but rather were expected to implement decisions made by others, and did so,” the report concluded.

In one case, the IG said, the agency awarded several contracts to E.L. Hampton Trucking Inc., a West Virginia company that was owned by a contracting officer’s husband. This represents at least the appearance of a conflict of interest, the report said.

The contracting officer said she had told her boss about the potential conflict and did not take part in the procurement, but the contract was awarded by one of her subordinates.

The IG said it could not substantiate a number of other complaints involving retaliation against agency personnel and favoritism by specific managers.

Deputy Labor Secretary Steven Law did not immediately accept the recommendation that MSHA’s procurement be handled by another office. He said reforms have been instituted, and added that many of the problems cited by the IG occurred “during the previous administration or before MSHA’s current leadership was fully in place.”

Law said the department will consider whether reforms now in place are sufficient before deciding on the IG’s recommendations. He said MSHA has improved documentation of its procurements and has established controls to prevent unauthorized personnel from making procurement decisions.

The audit report, number 25-05-001-06-001, was released Oct. 29.


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