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Thursday, January 31, 2008

Bill Moyers Journal Profiles the Work of the House Committee on Oversight and Government Reform

This week's edition of Bill Moyers Journal takes a look at the House Committee on Oversight and Government Reform and its work to investigate contractor waste, fraud, and abuse.

Here's the promo for the show, which airs on Friday:



Posted by Craig Jennings, 04:14:38 PM



Wednesday, January 30, 2008

NYT on Bush's Defense Authorization Bill Signing Statement

The New York Times wonders why the president believes that a wartime contracting commission and protection for contractor fraud whistleblowers would hinder his constitutional duty to faithfully execute laws.

The [national defense authorization] bill included four important provisions that Mr. Bush decided he will enforce only if he wants to.

The president said they impinged on his constitutional powers. We asked the White House to explain that claim, but got no answer, so we'll do our best to figure it out.

The first provision created a commission to determine how reliant the government is on contractors in Iraq and Afghanistan, how much waste, fraud and abuse has occurred and what has been done to hold accountable those who are responsible. Congress authorized the commission to compel government officials to testify.

Perhaps this violated Mr. Bush's sense of his power to dole out contracts as he sees fit and to hold contractors harmless. The same theory applies to the second provision that Mr. Bush said he would not obey: a new law providing protection against reprisal to those who expose waste, fraud or abuse in wartime contracts.



Posted by Craig Jennings, 11:18:31 AM



Tuesday, January 29, 2008

Despite Signing Statement, Senate to Move Forward with War Contract Commission

When President Bush signed into law the National Defence Authorization act on Monday evening, not only did he sign into law the authorization for the Webb-McCaskill wartime contracting commission, but he also issued a signing statement indicating that such a commission may interfere with his constitutional obligations. However, the Senate plans to press ahead with its plans to establish a commission that would investigate waste and fraud related to wartime contracts.

Sen. Jim (D-VA) Webb delivered remarks on the Senate floor expressing his bafflement at the president's insistence that accountability would interfere with his constitutional duties.

In other words, the President of the United States—who has been in charge of the conduct of this war and whose administration has been in charge of executing these contracts, supervising them, making sure that they meet the requirements of fairness in the law—is now saying that he believes that a legislative body can enact a law that he can choose to ignore because he says it would interfere with his responsibility to supervise a war as Commander-and-Chief.

I am at a total loss here. I am amazed to see this kind of language employed with respect to this legislation.

The Commission was put into place with broad bipartisan and bicameral support, with the intention of studying systemic problems. I would think that these are the sorts of problems that this President would want to root out.



Posted by Craig Jennings, 08:43:42 PM



Open-Gov Questions Candidates are Afraid We'll Ask

Elections are the time when politicians pay the most attention to people and issues, and therefore the best time to ask them questions about how they plan to govern. OMB Watch wants your help in figuring out the best questions on government transparency that can be put to the candidates. Take just a few minutes to answer our survey and vote on your five favorite questions on the issue of government transparency and openness. We will then share the top questions with the news media and other organizations that have direct contact with candidates.

Government openness affects every issue from budget and taxes, to the regulatory process, to non-profit advocacy. The range of questions tries to reflect this breadth so check them and see which are most important to you.

Take the Open Government: What We Need To Know Survey today.





Posted by Adam Hughes, 01:58:10 PM



Friday, January 25, 2008

DoD Unable to Control Contractors

Another unbelievable story on contracting in the Washington Post this morning. Walter Pincus reports that government officials (including Jack Bell, deputy undersecretary of defense for logistics and materiel readiness, Stuart W. Bowen Jr., special inspector general for Iraq reconstruction, and William M. Solis, director of defense capabilities and management for the Government Accountability Office) testified before Congress that the Bush administration is unable to manage the enormous number of U.S. contractors currently working in Iraq and Afghanistan.

At the end of September, there were over 196,000 contractor workers assisting the Department of Defense in the two war zones, and Defense Undersecretary Jack Bell stated that despite the crucial role these contractors play in the war effort, the Defense Department was "not adequately prepared to address this unprecedented scale of our dependence on contractors." The GAO also found not enough trained service personnel are available to handle outsourcing to contractors in the wars, a finding supported by Retired Army Gen. David M. Maddox, who has studied the contracting effort in Iraq as a member of an Army-appointed commission.

This testimony was delivered at a joint hearing of two subcommittees of the Senate Homeland Security and Governmental Affairs committee yestereday afternoon. And it is more than simply related to ensuring efficient management of the war effort - there's a lot of money involved here too. Subcommittee Chairman Tom Carper (D-DE) noted in a statement:

Out of $57 billion worth of contracts for services and reconstruction work in Iraq, the Defense Contract Audit Agency has reported that more than $10 billion — or one-sixth of the total spent on contracts — is either questionable or cannot be supported because of a lack of contractor information needed to assess costs. To date, there are more than 80 separate criminal investigations into contracts totaling more than $5 billion.
Here's a link to the committee page for the hearing where this testimony was heard, but it really won't do you much good as it doesn't have any testimony or information about the hearing other than who testified.

Image by Flickr user jamesdale10 used under a Creative Commons license





Posted by Adam Hughes, 10:30:39 AM



Thursday, January 24, 2008

Poor Contractor Performance Hampers Government

The past few weeks have seen a flurry of stories about the ineffectiveness of government contractors government mismanagement. While I'd like to go into detail on each one (they are definitely worth a closer look), the stories are starting to pile up. Instead, a summary round-up of some of the contracting screw-ups that appeared so far in 2008.

** The Washington Times reported today that an investigation that lead to the conviction of a former GSA procurement official (Dessie Ruth Nelson) and two top executives at a private security company (Holiday International Security, Inc.) is being widened to include other "unrelated contractors" who may have bribed Nelson or other procurement officials. Nelson pleaded guilty in early January to accepting over $100,000 in bribes in exchange for steering contracts to the private security firm founded by Michael Holiday. Nelson received, among other things, a shopping bag filled with $35,000 in cash, an envelope containing $10,000, and a $7,000 Caribbean cruise.

** The House Committee on Oversight and Government Reform released a report on Jan. 11 that found a web site created for the Transportation Security Administration to address grievances from travelers incorrectly flagged by the government's no-fly list was poorly constructed and vulnerable to hackers. The report, covered in the Washington Post, Government Executive Magazine, and other tech blogs, concluded that cronyism and a lack of oversight exposed thousands of site visitors to identity theft. In this case, the contract was awarded without competition and the TSA official in charge of the contract was a former employee and good friend of the CEO of the contractor.

** Federal Times reports today that the top official at the National Oceanic and Atmospheric Administration is alleging that "poor contractor performance is delaying a new satellite that will monitor global environmental conditions." The contract in question was given to Raytheon (FedSpending Profile) and Northrop Grumman (FedSpending Profile), which have been slow to solve problems with a key instrument for the National Polar Orbiting Environmental Satellite System (NPOESS).

** Finally, the Washington Post also has an article today about a recent Government Accountability Office report that found a defense contractor hired to repair combat equipment "routinely failed to do the job right and then charged the government millions of dollars for the extra work," according to the WP. The contractor, ITT Industries (FedSpending Profile) apparently received $4.2 million for additional labor, according to the GAO report.





Posted by Adam Hughes, 02:10:41 PM



Thursday, January 17, 2008

The Blind Leading the Blinder

The Washington Post reported this morning that congressional leaders have asked the Government Accountability Office (GAO) to investigate the use of no-bid contracts to hire businesses and corporations to oversee and monitor other businesses and corporations. Sen. Patrick Leahy (D-VT) and Rep. John Conyers (D-MI) apparently thought something smelled fishy when a federal prosecutor steered a no-bid, 18-month contract worth between $28 million and $52 million to his old boss, former Attorney General John Ashcroft.

The contract is for overseeing an out of court settlement the Justice Department reached with a knee and hip replacement company called Zimmer Holdings, Inc. from Warsaw, Indiana. Apparently Zimmer Holdings was accused of bribing giving kickbacks to doctors who used their knee and hip implants. Now the way these types of settlements work is that the monitoring company is paid directly by the offending business that it is supposed to be monitoring. Therefore, Ashcroft's consulting firm will be paid directly by Zimmer Holdings - the very entity he is supposed to be overseeing to make sure, if you can believe this, they don't make more illegal payments or bribes.

It's hard for me to even begin to describe the gut-wrenching, mind-boggling irony of this situation. First off, how can Mr. Ashcroft be expected to monitor a company in an independent manner that is paying him directly? Second, it's not like Zimmer Holdings was accused of union-busting or providing unsafe working conditions for its employees. They were accused of bribing doctors! Wouldn't it be reasonable to believe they could continue to attempt to offer illegal bribes? And how would the public know if they were doing that? Because the monitor company's bills are not subject to an independent review, are we just supposed to take Mr. Ashcroft's word for it?



Believing Ashcroft isn't the only problem. Read more...

Posted by Adam Hughes, 04:26:24 PM



Tuesday, January 15, 2008

New OMBW Report Exposes Poor Tax Enforcement Policies

OMB Watch released a new report today examining the IRS budget and enforcement policies and their impact on the tax gap. The report, Bridging the Tax Gap: The Case for Increasing the IRS Budget, focuses on three key areas in need of reform at the IRS: auditing, tax collection, and services for low-income taxpayers claiming the EITC.

This report comes at the start of a new budget cycle after the IRS was given too little money to accomplish its mission of enforcing the nation's tax laws and collecting federal revenues in 2007. Because of insufficient resources and inefficient (and sometimes dangerous) policies at the IRS, over $300 billion in federal income taxes goes uncollected every year. It's time for Congress to step up:

Congress has given considerable lip service to doing something about the tax gap for years but has done little to actually give the IRS the tools to make significant progress in closing it. Despite this fact, Congress has demanded the IRS close the tax gap without making more resources available for the agency to do so. Thus, the IRS has been forced to make difficult choices as to how to use the limited resources it has been allocated. As a result, at the very least, the tax gap remains a large problem, and most experts believe it has probably increased in size as the IRS has largely scaled back tax law enforcement over the last ten years.

We believe its time for Congress and the IRS to get their collective acts together and make some long-overdue changes to the IRS' budget and tax enforcement policies. This report gives some first steps in how this can happen.

Bridging the Tax Gap: The Case for Increasing the IRS Budget
OMB Watch Press Release for Report





Posted by Adam Hughes, 12:13:08 PM



Friday, January 11, 2008

Contact Us!

Questions, comments, suggestions, and glad tidings can now be directed to the BudgetBlog inbox at:

(In an effort to prevent spam, our contact address appears as an image and without a link to the address.)

Posted by Craig Jennings, 11:49:37 AM



Wednesday, January 09, 2008

Coconut Road Earmark Defies Laws of Physics

There was a great post yesterday on the NY Times editorial blog about the so-called "Coconut Road" scandal from the 2006 transportation reauthorization bill (for details on the scandal, see the Times coverage from June and October.)

The long and short of it is that a questionable earmark was removed from the final version of the transportation reauthorization bill by vote and then, magically it seems, appeared in the text of the bill anyway. From the Times yesterday:

Congress rejected [the] Coconut Road [earmark] in the final legislation. But then it resurfaced — apparently via some congressional staffer's clerical sleight of hand — in the suspiciously altered final law.

The mystery is how the will of Congress came to be so thwarted, and it deserves solving.

The appearance of this earmark after it was struck from the final version of the transportation bill is a violation of congressional processes and horrendously unethical to say the least. And as the Times correctly points out, the fact that nobody except Sen. Tom Coburn (R-OK) really cares about this is probably even worse. Congress needs to do better.





Posted by Adam Hughes, 04:43:04 PM




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