Acquisition Deform: Report Sparks Action
A recent POGO Alert on acquisition "deform," includes internal Defense Department documents revealing that the Administration's contractor-driven acquisition reforms may be making it easier, rather than harder, for defense contractors to overcharge the government.
A Pentagon procurement reform official admits in the documents that, "In all but a few cases we paid substantially more for the parts than we paid previously and there didn't appear to be any justification for the higher prices."
POGO's Executive Director, Danielle Brian remarked, "These documents confirm our worst fears--that recent acquisition reforms were really a deal for defense contractors, and not for taxpayers as they were portrayed." POGO's report and the resulting press coverage prompted Sen. Tom Harkin (D-IA) to request a GAO investigation (now under way) of the Pentagon's acquisition policy. Sen. Rick Santorum (R-PA) and Sen. Joseph Lieberman (D-CT) wrote to the U.S. Comptroller General while Sen. Fred Thompson (R-TN) and Sen. John Glenn (D-OH) wrote to Defense Secretary William Cohen, requesting investigations into POGO's revelations.
The recent changes to federal acquisition regulations have exempted contractors from supplying cost data if their products are deemed "commercial." Not surprisingly, contractors are claiming that military items they sell to DOD are everyday commercial goods, even when the items are made by only one company and bought only by the federal government. As a result, the government doesn't get access to cost data, and contractors are allegedly overcharging the government by several hundred percent.
Grassley Wins 1st Annual POGO Award
Sen. Charles Grassley (R-IA) received POGO's 1st annual "Beyond the Headlines Award," Dec. 4th, 1997 at our annual fundraiser. The award was created to recognize a person devoted to advancing the public interest over private gain by initiating substantial public policy improvements.
During the award presentation, Danielle Brian said, "Senator Grassley has a rare propensity to stick with an issue and continue to fight on principle to the end--particularly targeting wasteful military practices and championing the False Claims Act."
In receiving the award, Sen. Grassley remarked, "I appreciate the tenacity, integrity and standard of excellence that POGO demands in its investigative work. I hope to continue making a substantial contribution toward our mutual goal of good government."
In Progress: FEC --How Much $$$?
POGO's investigation of fundamental, yet previously undiscovered, flaws in the Federal Election Commission's (FEC) processing of campaign contribution data is well under way.
Through months of original research and consultations with experts, including senior FEC officials and the Center for Responsive Politics, POGO has discovered that, although candidates and PACs must each submit contribution data, these data bases are never compared.
In fact, POGO has found that hundreds of thousands of dollars in contributions are unaccounted for, improperly listed, or otherwise missing. Current FEC database inaccuracies often make them very misleading.
Our project is working to strengthen the FEC's institutional integrity, and will point to tangible reforms of FEC guidelines as well as candidate and PAC reporting requirements that will provide significant improvements to public disclosure of campaign financing. Look for our upcoming report...
In Progress: Whistleblower Advocate Files Searched
An Alyeska Pipeline Service Co. lawyer recently ordered technicians to break into the confidential computer files of the acting director for the company's internal whistleblower program. In response to this egregious invasion of privacy, POGO asked for an Interior Department investigation into the matter. Alyeska, the company that runs the Alaska pipeline, has a long history of whistleblower mistreatment.
POGO's Brian explained, "The idea of management having access to the names of people contacting the whistleblower office is the worst case of violating whistleblower privacy."
Assistant Secretary of Interior Bob Armstrong responded to POGO's request, "Following receipt of your letter, my staff contacted . . . (the) Federal Chair of the Joint Pipeline Office, to determine whether the Office was aware of the situation you reported and to gather any available information. . . . I will be reviewing the initiatives of the Company to assist it in restoring the integrity of this vital program."
Along with the Government Accountability Project (GAP), POGO will continue monitoring the ongoing situation for this and other whistleblowers at Aleyska. We'll keep you informed...
Conflict of Interest Steers Defense Panel
In 1996, Congress established what should have been a crucial "National Defense Panel" (NDP) of ostensibly independent experts to comment on the Pentagon's major review of military strategy, priorities, and spending.
Immediately before the NDP released its report, POGO issued an "Alert" showing that many members of the "independent" panel are far from being neutral third-party reviewers. In fact, most of the panel members work for defense contractors or organizations with financial ties to defense contractors.
It should come as no shock that the NDP's reported recommendations benefit defense corporations--arguing that the DOD needs to spend more money on futuristic technology and new weapons.
POGO believes a real assessment of defense needs can only be conducted by a panel whose employers or funders will not benefit from the panel's recommendations.
In Progress: POGO Joins Ohio Landfill Fight
POGO joined forces with the Concerned Citizens of Lake Township (CCLT), the Ohio Chapter of the American Friends Service Committee and the Lake Township Trustees to investigate possible radiation and to open sealed court documents regarding the Industrial Excess Landfill (IEL) Superfund site near Uniontown.
POGO wrote to Sen. John Glenn (D-OH) suggesting he request a US District Court Judge to lift the seal on a wrongful death case tied to the landfill. POGO also wrote EPA Administrator Carol Browner urging an ombudsman review of the EPA's handling of the IEL..
POGO will continue to work with these community groups to fight for an objective investigation of IEL. Brian commented, "Without an independent investigation, the questions surrounding the controversial landfill and its impact on the area's residents will never be answered." We'll keep you informed...
False Claims Act Under Attack by Industry!
A recent op-ed by former Defense Secretary Frank Carlucci; high-level Administration meetings with defense industry representatives; and rumors of Spring Senate hearings all about the "unfair" strains imposed on industry by the False Claims Act point to one thing -- the government's best tool to collect money bilked from the taxpayers by unscrupulous government contractors is again under an organized attack.
This news should come as no surprise. As a 1997 POGO report found, from 1994 to 1996 the defense and health care industries had to pay the government back nearly $2 billion because their fraudulent activity was successfully stopped by the FCA. It's time for us to raise our swords again for battle!
