Fortunately, there is a database of businesses and individuals who should never, ever be awarded federal government contracts. Unfortunately, it often fails to prevent bad people from getting good contracts, according to the Government Accountability Office (GAO).
The database is the Excluded Parties List System (EPLS). Federal agencies are always supposed to check the EPLS before awarding contracts, because it lists businesses and individuals that have been excluded, or “debarred” from being awarded federal contacts due to “egregious offenses” ranging from national security violations to tax fraud or improperly receiving federal contracts and other funds. Basically, folks you do not want to get your tax dollars.
Like the German company debarred by the U.S. Army after its president attempted to ship nuclear bomb parts to North Korea. As part of the debarment, the Army stated that since the company’s president “sold potential nuclear bomb making materials to a well-known enemy of the United States,” there was a “compelling interest to discontinue any business with this morally bankrupt individual.” However, the Army told GAO it was legally obligated to continue the contract and paid the company over $4 million in fiscal 2006. In fact, added the GAO, the Army had several options for terminating the contract, but it was not clear if these options were considered.
Then there’s the company debarred by the Navy after one of its employees sabotaged repairs on an aircraft carrier by using nonconforming parts to replace fasteners on steam pipes. Less than a month later, the Navy improperly awarded the company three new contracts because the contracting officer did not check EPLS.
It’s not always the federal agency’s fault, found the GAO, noting that most of the improper contracts and payments they found could be blamed on “ineffective management of the EPLS database or on control weaknesses at both excluding and procuring agencies.”
According to the GAO, the EPLS database itself suffers from incomplete or inadequate information and insufficient search capabilities. GAO also found several agencies had failed to enter debarments into the EPLS and others had failed to check the EPLS before awarding contracts.
Also See:
GAO Terrorizes US Passport Security System
US Defense Contractor Sell Arms to Arabs
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