Pentagon Agency's Contracts Reviewed (outgrowth of Duke Cunningham bribes)

[RedEarth]

Washington Post Staff Writer
Friday, March 3, 2006; Page A04

Federal investigators are looking into contracts awarded by the Pentagon's newest and fastest-growing intelligence agency, the Counterintelligence Field Activity, which has spent more than $1 billion, mostly for outsourced services, since its establishment in late 2002, according to administration and congressional sources.

The review is an outgrowth of the continuing investigation that resulted in charges against Randy "Duke" Cunningham (R-Calif.), who resigned from Congress in November and is scheduled to be sentenced today after pleading guilty to tax evasion and conspiracy to take $2.4 million in bribes.

In pre-sentencing documents filed this week, prosecutors said that in fiscal 2003 legislation, Cunningham set aside, or earmarked, $6.3 million for work to be done "to benefit" CIFA shortly after the agency was created. The contract went to MZM Inc., a company run by Mitchell J. Wade, who recently pleaded guilty to conspiring to bribe Cunningham.

Also this week, prosecutors released a letter dated Feb. 24, 2004, from Cunningham to CIFA Director David A. Burtt II, in which the former member of the House defense appropriations subcommittee and the House Permanent Select Committee on Intelligence thanked the CIFA staff for supporting another multimillion-dollar program that involved MZM.

CIFA, whose exact size and budget remain secret, was established in September 2002 to coordinate policy and oversee the counterintelligence activities of units within the military services and Pentagon agencies. In the past three years, it has grown to become an analytic and operational organization with nine directorates and widening authority focused primarily on protecting defense facilities and personnel from terrorist attacks. The agency was criticized after it was revealed in December that a database it managed held information on Americans who were peacefully protesting the war in Iraq at defense facilities and recruiting offices.

http://www.washingtonpost.com/wp-dyn/content/article/2006/03/02/AR2006030201705.html