The Pentagon kept contracting with a criminally indicted supplier via suspension overrides.
Evidence
In 2009 and 2010, grand juries indicted Agility on criminal charges for
6 billion in false claims and price manipulation. In 2011, a grand jury subpoenaed Mongeon as part of investigations into new charges against Agility. With the litigation ongoing, the Pentagon suspended the company and 125 related companies from receiving new contracts. Agility, in turn, has filed a225 million suit against the DLA for breach of contract. But strangely, the Army and the DLA have continued to do business with Agility, extending contracts on at least seven occasions via “compelling reason” determinations that override the company’s suspension. — David Vine, Base Nation_ How U.S. Military Bases…, 705
In 2009 and 2010, grand juries indicted Agility on criminal charges for
6 billion in false claims and price manipulation. In 2011, a grand jury subpoenaed Mongeon as part of investigations into new charges against Agility. With the litigation ongoing, the Pentagon suspended the company and 125 related companies from receiving new contracts. Agility, in turn, has filed a225 million suit against the DLA for breach of contract. But strangely, the Army and the DLA have continued to do business with Agility, extending contracts on at least seven occasions via “compelling reason” determinations that override the company’s suspension. — David Vine, Base Nation_ How U.S. Military Bases…, 705
Categorization
- SEED: Potential essay angle: the ‘compelling reason’ override as a systemic loophole that renders contractor suspensions meaningless.
- XREF: Connects to the LOGCAP and wartime contracting literature and the Commission on Wartime Contracting findings mentioned nearby.
- QUESTION: Worth chasing: what ‘compelling reason’ determinations legally justify continuing business with a suspended, indicted contractor, and how common is this override mechanism?
- corroborated: 3 independent passages support this claim — David Vine, Base Nation_ How U.S. Military Bases…, 705