Billion Dollar Audit Missed by Pentagon Watchdog
By Pratap Chatterjee*
WASHINGTON, Aug 31, 2010 (IPS) - Military auditors failed to complete an audit of the business systems of an Ohio- based company - Mission Essential Personnel - even though it had billed for one billion dollars worth of work largely in Afghanistan over the last four years.
In September 2007 the U.S. Intelligence and Security Command (INSCOM) awarded Mission Essential Personnel (MEP) a five-year-contract worth up to 414 million dollars to provide 1,691 translators in Afghanistan. MEP was a start-up company created by three men, including Chad Monnin, a U.S. Army Special Forces reservist who was injured in a parachute accident. Procurement rules give preference to companies owned by injured veterans, even if they have no prior experience.
When the Obama administration decided to expand the war in Afghanistan last year, MEP quickly hit the ceiling of what it could bill. On May 10, INSCOM gave MEP a 679 million dollar extension without bothering to put it up for competitive bid. MEP will also get a share of the Intelligence Support Services Omnibus III contract, a five-year contract, with a ceiling of 492 million dollars, announced on Aug. 10, 2010.
The only two other contractors that have held multi-billion dollar contracts to supply translators to soldiers and diplomats in the Global War on Terror - L- 3/Titan and Global Linguist Services - have both been investigated for alleged overcharging, suggesting that this type of work falls in the high risk category of government spending.
Yet the Defence Contract Audit Agency (DCAA) failed to conduct a full business systems audit for MEP.
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