The Associated Press reported that the House Oversight and Government Reform Committee will investigate how a huge loophole in federal overseas contracting was slipped into regulations being drafted to limit waste and fraud in government-funded projects. The regulations, when enacted, will require contractors to establish and maintain specific internal controls to detect and prevent improper conduct in connection with a government contract. The loophole would specifically exempt contracts performed entirely outside the U.S.
According to the report, the Committee will "look at whether the exemption was added at the request of private firms, or their lobbyists, to escape having to report abuse in U.S. contracts performed abroad."
It's a good question, but, as long as we are on the subject of waste, we would suggest a simple fix that could lead directly to an answer, without spending taxpayer dollars on document reviews, staff interviews, subpoenas, hearings and testimony stemming from an investigation. If Congress had enacted H.R. 984, Congressman Waxman's Executive Branch Reform Act, a few keystrokes on a computer might provide us with an answer as to whether a firm or lobbyist requested the exemption.
The Army will reimburse a subsidiary of the oil and gas giant Halliburton for close to the entirety of its $2.41 billion dollar contract, “even though the Pentagon's own auditors had identified more than $250 million in charges as potentially excessive or unjustified.” A spokeswoman for the Army Corps of Engineers stated that, “the contractor is not required to perform perfectly to be entitled to reimbursement.” The Pentagon will withhold $10.1 million from the contract, just 3.8 percent of the total questionable charges. This low amount is far outside the norm according to the New York Times, “In 2003, the agency's figures show, the military withheld an average of 66.4 percent of what the auditors had recommended, while in 2004 the figure was 75.2 percent and in 2005 it was 56.4 percent.”