The GSA, Bribes and $150 Million In Contracts
Here is fuel for those cynics who believe -- or at least speculate now and then in hushed tones -- that there are contracting officials in the federal government who are on the take.
A former chief executive for a security company pleaded guilty yesterday to giving $100,000 in bribes -- including cash, posh vacations "and other benefits" -- to a contracting officer at the General Services Administration in exchange for help in winning three contracts. The value of the contracts: $150 million.
This according to a press release by the US Attorney's office in Maryland.
The company, Holiday International Security Inc., now known as USProtect Inc., provided guards to 18 federal agencies in 32 states at 120 different locations. The owner, Michael Holiday, of Silver Spring, is a former cop.
Prosecutors said Nelson, the contracting officer, accepted a Caribbean cruise in addition to more than $100,000 in "cash bribes" from Holiday, the press release said.
Both Holiday and Nelson face trouble for allegedly failing to pay all their taxes. Each faces a maximum sentence for bribery of 15 years in prison. They also face fines up to $250,000.
There's more, so read the release and let me know what you think.
By Robert O'Harrow |
October 3, 2007; 4:21 PM ET
GSA
Previous: Blackwater: Proxy War Over Procurement |
Next: The Nuke Detection Beat Goes On - And On
Posted by: Connie the Contractor | October 4, 2007 7:30 AM
Did this contractor handle the SSA mail as part of the building security?
Posted by: Mary | October 4, 2007 11:49 AM
No surprise: USProtect PAC gave money to Northern Virginia's favorite Congressman on the Take, Tom Davis, donating to Davis's PAC, the Federal Victory Fund. Like most contractors, they were interested in getting influence with Davis when he was chair of the Congressional Government Oversight Committee. According to the FEC, two Arlington residents set up USProtect PAC and donated to it in 10/2005, and then donated to Davis the same month. The PAC has donated to no one else.
See http://query.nictusa.com/cgi-bin/com_supopp/C00408617/
Perhaps they also hired Davis's wife, state senator Jeannemarie Devolites Davis, who "prepares" contractors for hearings before Davis's committee through the lobbying company ICG Government.
See Harrow's story on their tangled web of money and influence here: http://www.washingtonpost.com/wp-dyn/content/article/2006/07/27/AR2006072701846_pf.html
Connie, I don't think low-level employees can command bribes. They can't deliver any results. Companies don't pay if they won't see results.
Posted by: AndreaC | October 5, 2007 10:42 AM
I am a GSA Contracting Officer who is completely appalled that a co-worker in my agency would be so stupid to accept a bribe from a contractor. All of the employees, and especially the Contracting Officers I know, are the most ethical, honest and hard working associates in Government. I hope one individual's actions do not taint the reputation of so many others who strive daily to serve all Government agencies and the American taxpayer. I also hope that she is prosecuted to the full extent of the law and she spends many years in prison reflecting on her shame.
Posted by: Helen | October 6, 2007 6:08 AM
How did USProtect procure contracts already awarded to Akal Security Inc. in Texas and Washington D.C.?
Posted by: Anonymous | October 6, 2007 6:46 PM
I have to agree that the true crime is the revolving door between contractors and Federal employees. Take the case of Former Secretary of Energy Hazel O'Leary. She is now on the board of directors of ICF Kaiser, after of course they were awarded multi million dollar contracts and performace bonuses.
Too bad the whistleblowers have been castrated, and government officials, including our elected officials are not being held accountable.
Best government money can buy.
Posted by: Mark Graf | October 8, 2007 7:57 AM
Tip of the iceberg.
Posted by: Barry E Lerner | October 8, 2007 4:23 PM
Adding to Connie's comments, while all this jockeying for a position goes on the govenrment contracting person is probably not holding the contractor's feet to the fire so as to make sure they get that good paying job when they retire from the gov. And it's not just contracting personnel but government program managers as well - especially military program managers.
Posted by: mable | October 8, 2007 6:12 PM
i was a guard for holiday international from 2001 to 2003 continue employment when they try to be deceitful changing there name to USProtect.worked four years with USProtect from 2003 to 2007,the east and south bay in california. they were a group of theives than and they are now i think the good lord they were exposed.
Posted by: reginald | October 8, 2007 6:41 PM
IT SEEMS LIKE BRIBES AND WAR CAN GO TO A TRILLION DOLLARS, BUT HEALTH FOR CHILDREN WILL COST 10O MILLION IN FIVE YEARS AND YOUR PEOPLE IN THE REPUBLICAN PARTY ARE WORRIED ABOUT THAT,SHAME
Posted by: Anonymous | October 10, 2007 8:26 AM
Tip of the iceberg is right on. How about all the members of congress and their relatives who are or will be lobbyist for companies where the members vote on legislation and pork for the companies in exchange for jobs and PAC money. It's amazing that anything good for the general public ever happens , or does it ?
Posted by: JB MILLER | October 10, 2007 9:06 AM
Communist China today announced that they are now able to fight an offensive war, because of the newly operational and modern air defense radar system. China now has more military jets then the United States and they are on par or better. The Chinese army not only is overwhelming in numbers compared to the United States has passed us in readiness and modern arms. Hands down they can defeat all of the so-called super powers in a conventional war. This serious turn of events is do solely to our free trade with China...the wealth and technology that has been transferred. WHY?Who is responsible besides the self serving politicians...we need to find out and get rid of them, these vile traitors.
Posted by: Anonymous | October 10, 2007 1:24 PM
Vote Ron Paul
He's the only honest one who will attempt to subvert the federal beast of a government.
Posted by: Jp | October 12, 2007 8:22 AM
So? What else is new?
Have the trials and if guilty, take their assets, start a public accessed data base of untrustworthy, felonious people and turn them out into the streets.
They'll do fine.
Posted by: 90172 | October 12, 2007 9:03 AM
What would be ideal is if people would demand more from the people in the top side of government agencies. If you ask the little people working they will tell you things are really screwed up. The biggest problem is these payoffs include giving friends jobs in high places and these friends have no clue how to run the departments. They actually end up playing high school games and creating hostile enviornments that never end because they can't be touched because of "WHO THEY KNOW". Much of the mismanagement of most of our agencies is for this very reason. This is costing tax payers billions of dollars and a problem that will NEVER BE FIXED. I witness this first hand. People are shifted around constantly and time is wasted from some idiot who doesn't know what they are doing. While it has no effect on the person doing the shifting it's causing a lot of problems for those who are trying to do a job. Maybe it's part of their strategy for keeping their budget in line. If they make sure people quit all the time they can hire at the first step. But this also insures the general public never gets the best services because the workers never get trained well enough to know how to do their job. And it keeps the boss happy because most people won't figure out they don't have a clue how to run the department they have been placed in charge of. It would be nice if people would listen to people who try to let what's going on be heard instead of pushing them under a rug hiding what they say and let the games go on. Then you hear how bad things are and wonder why. Next time you see problems why don't you find the REAL PROBLEM instead of some scape goat who got fired to cover up the problem. It would be nice to see the smirk wiped off the bosses mouth and the workers to come out of their closets and smile again. Instead in most departments the only people who might see a smile is the general public from the workers who are told to be friendly while all the while in their break room they act and feel like a battered wife. I guess that's how things are done. I'm also told there is NOTHING THAT ANYONE CAN DO ABOUT IT. I suppose they are right. I guess I go back and crawl under my desk and smile at you when you come into my office. It's better than being unemployed. It sure would be nice if people would figure it all out though.
Oh well. It's on your dime. I know the workers can't change it.
Posted by: KF98 | October 13, 2007 10:13 AM
Just another example of the "POLICIES AND CORRUPTION OF THE GEORGE W.RONG FOR AMERICA BUSH ADM.
AMERICA WILL FOREVER BE SORRY
Posted by: Paul Marsh | October 14, 2007 12:02 AM
The chinese governament is a paper tiger. They will implode due to aging population,Envoiranamental disaster,lack of water.They do have a huge trade surplus.With the decline of the dollar that surplus is also declining.
What we need to do is to make any trade with them subject to balance.They should only be able to export only against imports.Additionly any amount of money the PRC spends beyond their normal Defence needs should be offset by several times by their exports to the usa.
Our strength is in an open society,Top class industrial,Governament research,Top lass universities.
I am a refugee who was lucky to be a n naturalsed american citizen.I have been in the otherside of the ocean but i preffer the freedoms of my adopted country.
Posted by: Allen | October 16, 2007 1:55 AM
I question the accuracy of this post, by Allen. While I will give some lattitude for fast typing & misspellings, but to capitalize PRC and leave "my adopted country" in lower case, says to me, that, this post is phoney!
The chinese governament is a paper tiger. They will implode due to aging population,Envoiranamental disaster,lack of water.They do have a huge trade surplus.With the decline of the dollar that surplus is also declining.
What we need to do is to make any trade with them subject to balance.They should only be able to export only against imports.Additionly any amount of money the PRC spends beyond their normal Defence needs should be offset by several times by their exports to the usa.
Our strength is in an open society,Top class industrial,Governament research,Top lass universities.
I am a refugee who was lucky to be a n naturalsed american citizen.I have been in the otherside of the ocean but i preffer the freedoms of my adopted country.
Posted by: Allen | October 16, 2007 01:55 AM
Posted by: Ray Biasella | October 16, 2007 8:20 PM
This occurs ALL DAY EVERYDAY. The Justice Department needs to hire undercover agents to work in the contracting offices. They need to know what to look for. The Schedule C Political Appointees don't have a clue nor does the Head of the Contracting Activities.
Posted by: D Jack | October 18, 2007 10:09 AM
KBR,Halliburton, Custer Battlefields, Blackwater,DynCorp International,USProtect....
They all have one thing in common. All were given sweetheart contracts without even submitting a bid to GSA. Maybe Dick Cheney should go on trial for Bribery and fixing so that Halliburton got all its contracts in Iraq and in New Orleans from GSA. But nobody wants to talk about putting the Vice Prseident on trial for corruption.
Posted by: William Scanlon | October 19, 2007 2:26 PM
I agree with Jp. Vote for Ron Paul. He's the only one who can clean up this mess.
Posted by: libertarian2 | October 23, 2007 9:14 AM
I work for GSA, and no, this most certainly does not happen "all day everyday" in our agency. You people are idiots. If you aren't a GSA CO, then shut up and go google your favorite conspiracy theory. Very few COs would risk taking more than $20.00 from a contractor without notifying their ethics officer. I am curious how Connie the Contractor knows that the problem was her "low rank", and knows if she were a "higher rank", she'd just go work for the contractor. That seems pretty stupid to me, since I actually work at the agency, and you don't. Almost everyone works within 3 grades. There aren't huge "ranking" differences within the agency. It's a professional organziation. Most people are 12s or 13s.
Posted by: julie | October 25, 2007 1:38 AM
Post a Comment
We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.
User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.











Bob -
Good piece. Unfortunately, this particular contracting officer, probably because of her relatively low position, had to resort to taking cash bribes, which are clearly illegal. Had she been higher ranking, she could have given the company all it wanted in exchange for a job later on (despite the existence of the so-called Procurement Integrity law). Sadly, it appears that many senior government contracting officials are tomorrow's contractor executives or managers.
If you go to any of the contractor association conferences, you will see the networking in action, as government contracting personnel (usually those considering retirement) jockey for contractor jobs. Not bribery - technically, but you can't help but get the feeling that they are selling themselves to the "highest bidder".
Connie