$90 Million lost while Tom Davis protects Sun Microsystems

By: Andrea Chamblee
Published On: 5/23/2007 1:26:52 PM

Cross posted at Beltway Progressive.
Robert O'Harrow Jr. and Scott Higham have a story on taxpayer robbery today that again fails to mention the get-away car driver: Tom Davis.

According to WaPo, On April 12, the U.S. attorney in the Eastern District of Arkansas filed suit against Sun [Microsystems], alleging that the company violated the False Claims Act when it "made false statements to the government about its commercial sales practices and the discounts it offers to its commercial customers."

Sun was selling tens of millions of dollars a year in software and services to agencies across the government, and the GSA stood to lose millions in industrial funding fees. Details on the prices remain secret because they are considered to be proprietary information. But the audit findings -- that Sun's commercial customers were getting discounts not provided to the government -- could not be ignored by agency officials.

One GSA contracting officer negotiating the discounts for taxpayers, Herman Caldwell, was reassigned. Lurita Doan and James A. Williams were pressuring the new GSA contracting officer, Mike Butterfield, to give Sun a break. Williams was told the government had already been overcharged $77 million over 6 years and was about to be overcharged another $14.4 million.

Hours later, a new contracting officer, Shana Budd, was assigned to replace Butterfield

Tom Davis had a critical role making this possible, converting government buying into a cookie jar for greedy contractors, for example, with a "Share in Savings" program that allowed contractors to pay themselves with amounts they claimed to save the government.

"It's kind of like going into a used-car dealership and being too trusting," said Angela B. Styles, a corporate lawyer who served as President Bush's chief contracting official from 2001 to 2003. "I don't think you really want a partnership with a used-car dealer because you're probably not going to get the best car at the lowest price."

"You couldn't design a better system to make accountability impossible," said Daniel Guttman, a government contracting expert at Johns Hopkins University Center for the Study of American Government. "We simultaneously increased the incentive to get masses of contracts out the door and assured no one will look and see how the money is being spent."

According to WaPo, Tom Davis defended Budd at the March hearing.

Budd defended herself ... in an e-mail released at a March 28 hearing by Waxman's committee. It was read by Rep. Davis....

In a report prepared by the Republican staff of the House Oversight and Government Reform Committee, investigators questioned Waxman's findings and defended Doan and the Sun contract. "There is no evidence the Administrator acted improperly with respect to the Sun Microsystems contract," the report said, adding that "many of the issues" had been resolved before Budd took over the contract.
****
Waxman responded that Doan's statements "appear to be misleading" based on the committee's review of the e-mails of her multiple contacts with Larry Allen.

The testimony of the two GSA employees, Butterfield and Caldwell, is evidence. Perhaps there was no more evidence because as long as Davis had been head of the Oversight Committee, there had been no investigation. Sun Microsystems also paid Davis and the pay-to-play politicians to hold back investigators.

SUN MICROSYSTEMS INC POLITICAL ACTION COMMITTEE, Tom Davis, $5,000 of $10,500.

DAVIS, THOMAS M III VIA TOM DAVIS FOR CONGRESS
10/21/1999  $500.00 20035262854
06/07/2000 $500.00 20035893423
07/18/2001  $1,000.00 22990161786
06/25/2002  $1,000.00 22991431733
09/19/2006  $2,000.00 26930426824

NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE
07/15/2003  $1,000.00 24990274948
NATIONAL REPUBLICAN CONGRESSIONAL COMMITTEE CONTRIBUTIONS
11/16/2001 $2,500.00 22990161785
NATIONAL REPUBLICAN SENATORIAL COMMITTEE
05/28/2003 $2,000.00 23991565976

WASHINGTON MANAGEMENT GROUP, Tom Davis, $1,750 of $11,200.00 Total Contributions

ALLEN, EDWARD L. MR. JR. ARLINGTON, VA 22207
WMG/ASSOC
DAVIS, THOMAS M III VIA TOM DAVIS FOR CONGRESS
06/16/2004 $500.00 24961800258
01/27/2006 $500.00 26940071388

CAGGIANO, PAUL J BETHESDA, MD 20814
WMP President
DAVIS, THOMAS M III VIA TOM DAVIS FOR CONGRESS
09/26/2000 $250.00 20036182097

DAVIS, THOMAS M III VIA TOM DAVIS FOR CONGRESS
12/15/2001 $500.00 22990118509

HARTWELL, STEPHEN MOUNT VERNON, VA 22121
WMG Principal
NATIONAL REPUBLICAN SENATORIAL COMMITTEE
02/14/2003 $7500.00 23020140686
10/28/2004 $200.00 24021041394

FAIRFAX COUNTY REPUBLICAN COMMITTEE (FEDERAL)
07/22/2004 $1,000.00 24962200931

This is a favorite Committee for Tom Davis; he has donated $58,000 from Tom Davis for Congress to this Committee. Other than James Hyland, Davis's wife Jeannemarie Devolites has received the most donations for an individual candidate from this Committee at almost $5,000.

HARTWELL, STEPHEN WASHINGTON, DC 20005
WMG/CHAIR
KYL, JON VIA JON KYL FOR U S SENATE
02/13/2006  $500.00  26020230294

SISTI, THOMAS KENSINGTON, MD 11570
WMG
FLYNN, JOHN THOMAS VIA JOHN THOMAS FLYNN FOR CONGRESS 03/01/2005  $250.00  25038771089


Comments



Federal Times has more on Davis vs Waxman (Andrea Chamblee - 5/23/2007 2:23:20 PM)
http://federaltimes....

I'm willing to accept a certain amount of, I don't want to say `fraud,' but a certain degree of flexibility [from contractors].... [Waxman is] not, necessarily," Davis said in an interview.

Tom Davis sets up a straw man question here. The question is not whether overauditing paralyzes people to become afraid to make mistakes. It does. But Davis presided over 12 years of no auditing, which let criminals know they could operate in a Safe Zone at GSA they paid Davis and Jack Abramoff to set up for them.

Committee sources confirmed that contracting issues are on the top of their to-do list, increasing the probability of a political face-off between committee Chairman Henry Waxman, D-Calif., and ranking member Rep. Tom Davis, R-Va., who hold sharply different views on how contractors should be regulated.

While Waxman wants to rein in contracting, Davis, who represents a portion of Northern Virginia that is home to some of the country's top defense contractors, wants to grant contractors more flexibility.

Contracting reform legislation introduced by Waxman - to increase competition for government contracts, and to set aside funds to train procurement officers to better oversee contractors - passed the House last month and is bogged down in the Senate. Rather than waiting for action on those general reform measures, Waxman will schedule new hearings, sources said, that will focus on specific contractors and examine why those who have failed in the past are awarded new contracts or allowed to continue work.

Some of Waxman's hearings have already begun this. A recent hearing examined why the General Services Administration renewed a contract with Sun Microsystems despite performance concerns. Another hearing examined the Homeland Security Department's management of Deepwater, the Coast Guard's modernization contract, and SBInet, the department's border security contract.

During the 2006 election cycle, Davis received contributions of more than $10,000 each from defense contractors Lockheed Martin and Northrop Grumman and $32,000 from contractor Argon ST Inc., all with facilities in Northern Virginia, according to the Center for Responsive Politics.