DC-area contract flaws

The inspector general for the General Services Administration reported significant and recurring problems with GSA’s contracts in the National Capital Region from fiscal 2007 to 2012.

"Weaknesses in internal control may have impaired the National Capital Region's procurement process and the effectiveness of operations," the IG wrote.

In one case, GSA awarded a $2.6 billion IT support task order that was canceled. The contractor was not named, but based on previous reports, it was Northrop Grumman Corp. for work at the Homeland Security Department’s new headquarters. The GSA’s award funded non-severable services, violating the bona fide needs rule, the IG said.

In another example, a $500,000 contract for pre-design services was made without competition and without adequate justification or proper approvals, the IG said.

GSA said changes have been made in the last two years to fix the weak spots.

More information:
IG report http://goo.gl/QnICHu

Contract fraud update

SDVOSB faker - A New Mexico construction company owner and his son-in-law have pleaded guilty to fraud in connection with $11 million in contracts intended for service-disabled veteran-owned small businesses, Albuquerque Business First reported.

Max Tafoya, owner of MR Tafoya Construction Inc., will serve 57 months in prison, and Tyler Cole will serve 37 months, under the plea agreements. A federal judge will determine fines and restitution, if any.

More information:
http://goo.gl/6PRtiv

Navy contract investigation - Three senior Navy intelligence officials are under investigation for allegedly charging the military $1.6 million for homemade firearm silencers, the Washington Post reported.

More information:
http://goo.gl/iGg8Pt

DOD insourcing

It’s not too late to submit a comment on the Defense Department new interim rule regarding contracting officials notifying vendors of insourcing plans.

Under the rule, the officers must notify the affected incumbent contractor within 20 business days of an insourcing decision.

The notice must summarize why the service is being in-sourced. But it does not require the agency to disclose cost comparison analysis, noted Government Contracts Advisor. Written comments are due by Dec. 30.

More information:
http://goo.gl/xzU5TN

More DOD cuts coming

Fiscal 2013 budget cuts at the Defense Department were bad, but fiscal 2014 will be worse, according to Aronson LLC.

DOD spending cuts are expected to increase by 40%, to $52 billion this year vs. $37 billion last year. Mitigation resources also will be less available.

More information:
Aronson FedPoint blog http://goo.gl/a4Y1FX