Was the Navy Defrauded? You be the Judge!

What is the real relationship between certain senior naval officials and their retired counterparts working for Coopers and Lybrand? Was it innocent as Department of Defense Inspector General Audit Report 94-113 claims, or was it really criminal? Ten million dollars was spent to employ them, but even the Inspector General found no measurable value in the resultant product

JUNK YARD DOG OR WHIMPERING PUPPY

President Reagan described Inspector Generals as "junk yard dogs" that take a bite out of crime. This is the case of the "whimpering puppy". I was forced to help prepare a contract that did not follow any of the established rules. I never had any biases one way or the other when I first entered this case; I have, however, been convinced by my extensive research that this series of improperly issued contracts was not just a mistake that was cured by teaching people the rules, but rather a deliberate criminal enterprise that pressured anyone who opposed it. Naval Academy Professor James Barry's 1996 Washington Post op-ed article "Adrift in Annapolis" quoted some of his Midshipman students as saying that the difference between Midshipmen (and Naval officers) and the Mafia was "we wear uniforms". I took an oath to defend the Constitution of the United States against all enemies foreign and DOMESTIC, and I consider senior officers who think first of their personal pocketbook and ignore their own oath of office to be DOMESTIC ENEMIES. I did not see any one take a bribe; I was not offered one, but the behavior I am describing here shows a clear pattern of probable bribery. I ask you to join my challenge to the Department of the Navy, the Department of Defense, the Justice Department, and the Federal Bureau of Investigation to leave no stone unturned in examining the unusual relationships behind this series of contracts, and not to just let the perpetrators retire into the sunset free to enjoy the fruits of their conspiracy.

FOLLOWING THE TRAIL

Follow the Trail - the same trail that led me to my conclusion that over 30 separate improper contracts for which you the taxpayer paid out $10 million were not mistakes, but criminal.

INSPECTOR GENERAL AUDIT AND ITS SHORTCOMINGS

The trail begins with the initial suspicions, warnings, the Hotline complaint, and the resultant Inspector General's audit report - followed by my rebuttal, and an overview of what the Inspector General examined together with what it failed to examine.

NAVAL SHIPYARD INVOLVEMENT

You will travel from now-closed Charleston Naval Shipyard, South Carolina, to Pearl Harbor Naval Shipyard, Hawaii, Nofolk Naval Shipyard, Virginia, Portsmouth Naval Shipyard, New Hampshire/Maine, Puget Sound Naval Shipyard, Bremerton, Washington, and finally to my now-closed Mare Island Naval Shipyard, Vallejo, California.

NAVAL AIR DEPOT AND INTELLIGENCE ACTIVITY INVOLVEMENT

We will also travel to also closed Pensacola Naval Air Depot, Florida, and the Naval Intelligence Activity, Suitland, Maryland.

WASHINGTON HEADQUARTERS INVOLVEMENT

Naval Sea Systems Command and Naval Supply Systems Command Headquarters, the Assistant Secretary of the Navy (Research, Development and Acquisition), Department of Defense and Naval Inspector Generals and Naval Criminal Investigative Service play prominent roles.

CONTRACTING CENTER INVOLVEMENT

Contracting activities which did not follow the rules include the Naval Regional Contracting Center, San Diego, California, and its Long Beach, California Detachment plus the Naval Regional Contracting Center, Washington, DC, in addition to the contracts organizations at each of the field locations.

SENATOR AND ADMIRAL LISTEN

Senator David Pryor would have held hearings three years ago had the Republican takeover of the Senate in the 1994 election not stripped him of his Senate Governmental Affairs Subcommittee on Federal Services, Post Office and Civil Service Chairmanship and staff. The late Chief of Naval Operations, Admiral J. M. "Mike" Boorda penned a strong note offering to listen and vowing to act, but tragically never received the briefing I was preparing for him.

WHISTLEBLOWER PROTECTION ACT - A JOKE!

The Whistleblower Protection Act does not adequately protect people who act ethically by refusing to cheat you the taxpayer, or even worse using every possible resource to make you, executive level management, Congress and investigative agencies aware of serious wrongdoing.

WHAT CAN YOU DO?

Draw your own conclusions and act. Let your Member of Congress and Senators know that you want this thoroughly investigated, that you consider $10 million a significant amount of money, and demand an accounting of the value you received for it.

ARE YOU A WITNESS?

If you were present at any one of these activities, or behind the scenes at the contractor Coopers and Lybrand's Government Consulting Practice in Virginia, step forth and tell what you know. Help recover the taxpayers' millions and bring the perpetrators to justice.


FOLLOWING THE TRAIL

Ex-Mare Island Worker Maintains Fraud Charge - Navy Rejects Claims, But Senator Investigates
Article from Contra Costa Times, October 1995
Dept of Defense Inspector General Audit Report 94-113
Orders Placed Under Federal Supply Schedule Contracts for Total Quality Management Services at Naval Shipyards
Not a Bed Bug Letter, Admiral Boorda Agrees to Listen
Admiral "Mike" Boorda's Handwritten Note
Do Audit Findings Answer or Avoid the Allegations? You Be the Judge.
Allegations, findings and commentary initially prepared to brief the late Chief of Naval Operations, Adm Boorda.
Why a Hotline Complaint? How the IG Began.
The story behind the December 1992 Hotline Complaint.
What Went Wrong With DOD-IG Audit Report 94-113?
The failings and shortfalls of the May 1994 audit report.
Senator David Pryor's Governmental Affairs Subcommittee Investigation
Senator Pryor's letter to the Inspector General and her reply
Principle Deputy Assistant Secretary of the Navy Vice Admiral W. C.Bowes reply to Senator Pryor
Navy reply to Senator Pryor's initial follow-up questions.
Admiral/Norfolk Connections Spelled Out In Inspector General Letter To Senate Staff
Naval Sea Systems Command Inspector General July 1996 Letter to Senate Staff Investigator Richard Goodman
The Initial Mare Island Statement of Work
TQM References Deleted and Found Out of Scope - Changed to Training
You paid Coopers & Lybrand $446,000 for this!!
The Bar Charts from the Final April 1993 Brief - They were discarded as useless 3 months later in July.
What compelled every Shipyard to use Coopers and Lybrand ...
Unseen Hands, No Need, No Relevance
Charleston Naval Shipyard, Coopers & Lybrand and TQM - Activity-Based Costing, Fraud or Mistake
You spent $2.7 million for these questionably described services; the IG only looked at a small part of them. Why did it not look further? It was there for 2 weeks.
Naval Air Depot Pensacola, Coopers and Lybrand and TQM, Fraud or Mistake
The Inspector General ignored the lead to these orders. None of them were properly issued, and a local Hotline complaint was made, but ignored.
Coopers and Lybrand, Naval Intelligence Activity and TQM, Fraud or Mistake
The Inspector General did not follow the roadmap to these orders. Why not?
Keeping Procurement Fraud At Bay by Paul Dopp
Particularly note SUPPLIER AND CONTRACT FRAUD RED FLAGS (BIDDING AND SELECTION STAGE); the Naval Criminal Investigative Service issued a similar chart, but declined to pursue the indicators - 4. Company Alumni Involvement with Contractor; 6. Competition restricted; 7. Contractor selection unjustified; 8. Contracts repeatedly awarded to the contractor; 10. Narrow bid specifications; 11. No provision to audit contractor; 13. Rushed timing; 14. Split contract; 15. Unclear bid specifications.
Ferreting Out Fraud
An excellent article about the kind of approach the IG should have used.
Jim D'Elia's Web Page on Whistleblowing in the Federal Government
The voice of experience and an active worldwide whistleblower guestbook
Roger's Guestbook
Take a look, see what others are saying and leave your comments. I am constantly trying to better tell this story.

NAVY WORKERS - DID YOU USED TO WORK AT?