Introduction
Government Information On Contractor Misconduct
Congress
POGO On Contractor Misconduct
News Articles
Contract Oversight - Complete Katrina Archive


Introduction

Many of the U.S. government's largest contractors have repeatedly broken the law or engaged in misconduct, according to an on-going investigation by POGO However, few are prevented from receiving additional government contracts, exposing the taxpayer and the government to being repeatedly ripped off or otherwise harmed. The government’s own laws and regulations require that contractors who break the law or are even indicted should be prevented from receiving contracts, at least for a temporary period. In practice, small businesses are frequently barred from contracts while larger, more politically-influential companies continue to rake in the awards.

With squadrons of attorneys to guard their interests, large contractors may sign agreements with the government known as “administrative agreements” in lieu of being barred. Akin to a fake slap on the wrist, the agreements usually require that the contractor engage in ethics training for a period of time. The Pentagon also frequently claims that it is unable to bar large unethical companies from contracts because the company may have a monopoly in a particular contracting arena. However, the Pentagon itself funded of the consolidation of the defense and aerospace industries during the 1990’s. More significantly, because it is the world’s largest consumer of goods and services on the planet, no institution has more power to determine its fate in the marketplace than the Pentagon.

Government Information On Contractor Misconduct

Excluded Parties List. The General Services Administration (GSA) maintains the government database includes the names of individuals and companies that are currently barred from receiving government contracts. In August 2005, the GSA agreed with a Government Accountability Office recommendation that the database include administrative agreements. POGO has additionally recommended that the GSA maintain historical records on past incidents when contractors are barred from government contracts.

http://www.epls.gov/

Congress

Contractor Misconduct Database Embraced by Senate. Today, the Senate agreed to require that the Defense Department maintain a database of instances of misconduct committed by its contractors. POGO has supported this reform as part of its investigations into contractor misconduct. October 6, 2005. To learn more, read "Lautenberg 'Truth in Contracting' Amendment to Defense Appropriations Bill Adopted by Senate," press release from Senator Lautenberg, or the text of Senator Lautenberg's amendment. October 6, 2005

POGO On Contractor Misconduct

Federal Contractor Misconduct Database. In 2002, POGO began compiling instances of misconduct involving the federal government’s largest contractors which are included in this database. The database has become a resource for government contracting officials who have no other source of information to turn to when determining whether contractors are ethical.

Follow this link to POGO's Federal Contractor Misconduct Database.

GAO: Government Should Disclose Info about Lawbreaking Contractors, August 29, 2005.

Suspension and debarment: The record shows that the system is broken, Federal Times oped by POGO’s Scott Amey, March 21, 2005.

Federal Contractor Misconduct: Failures of the Suspension and Debarment System, POGO report, May 10, 2002.

News Articles

Blackwater Broke Rules, Report Says: Army Probed Deadly Crash in Afghanistan, Washington Post, October 5, 2005
A private contracting firm flying in Afghanistan for the U.S. military was in violation of numerous government regulations and contract requirements when one of its planes crashed into a mountainside in November 2004, killing all six on board, according to an Army report made public yesterday.

Army Report Reveals New Findings Against Blackwater for Military Deaths in Afghanistan, press release from Law firm of Spohrer, Wilner, Maxwell and Matthews, October 4, 2005. 
Recently-obtained U.S. Army findings against Blackwater USA related companies have resulted in an amended complaint for punitive damages being filed today in a wrongful death suit against the military contractor.

Questionable firms benefit from Katrina, Wall Street Journal, September 21, 2005.
Goldstar EMS was on the ropes earlier this year, beset by legal problems. The Texas ambulance provider's offices had been raided by the Federal Bureau of Investigation as part of a widening investigation into alleged Medicaid fraud. It faced a $1.3 million tax lien from the Internal Revenue Service.

Company hired to recover La. bodies has ties to lawsuit, South Florida Sun-Sentinel, September 16, 2005.
The company hired to recover Louisiana bodies in the wake of Hurricane Katrina is owned by the same corporate parent sued for mishandling bodies and desecrating graves in South Florida cemeteries.