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Government Considers Barring CACI Contracts

May 28, 2004 

 

Today the Los Angeles Times reports that the government is considering barring Iraq reconstruction contractor CACI from future government contracts.

Project On Government Oversight (POGO) Executive Director, Danielle Brian, commented on the news: "Once again political opportunism is driving decisions to bar contracts rather than a fair application of ethical standards and taxpayer protections. Other companies have a far worse track record than CACI, which happens be the news of the day. The government should not dole out billions of dollars to large recidivist Iraq contractors like General Electric, Lockheed Martin, Dyncorp, Raytheon, and Northrop Grumman." For example, General Electric was found by POGO to have almost $1 billion in fines, settlements, and penalties over the past decade.

Since 2001, POGO has been investigating the federal government's failure to bar unethical companies from government business, finding that large contractors rarely are suspended or debarred compared to small contractors. In July 2003, POGO compiled updated data on the largest federal contractors and their cases of misconduct (click here to see the POGO Alert). Below is a chart identifying those companies with the most cases, demonstrating a pattern of unethical activity.

POGO's Federal Contractor Misconduct Database includes more than 50 of the largest federal government contractors including Iraq reconstruction contractors Bechtel, CACI, Dyncorp, Fluor, General Electric, Lockheed Martin, Research Triangle Institute, Raytheon, SAIC, Unisys, and Northrop Grumman (contract via subsidiary Vinnell).

POGO investigations have brought renewed attention to the need to reform the suspension and debarment system and helped foster an environment that led to suspensions last year of the first major contractors, including Boeing, in more than a decade. POGO is participating in a series of symposiums with government officials and industry organized by the George Washington School of Law in order to forge a new consensus on how suspension and debarment laws should be applied. Danielle Brian's testimony describing the current state of affairs with suspension and debarment can be viewed here: http://pogoarchive.pub30.convio.net/pogo-files/testimony/contract-oversight/co-fcm-20031120.html

Contractors with the Most Instances of Misconduct (1990 - 2003)

Contractor

Instances of Misconduct

Total Fines, Penalties,
and Settlements

General Electric

87

$990,083,577

Lockheed Martin

84

$426,162,291

Boeing

50

$378,941,913

Northrop Grumman

36

$310,429,431

Raytheon

31

$156,576,914

United Technologies

23

$215,287,702

General Motors

22

$1,004,677,636

Textron

21

$24,938,166

TRW

19

$389,546,250

British Nuclear Fuels

18

$78,490,620


Founded in 1981, the Project On Government Oversight (POGO) is a nonpartisan independent watchdog that champions good government reforms. POGO's investigations into corruption, misconduct, and conflicts of interest achieve a more effective, accountable, open, and ethical federal government.

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