Monday, January 25, 2010

Obama Awards Lucrative No-Bid Afghan Contract To Prominent Dem Donor

I seem to remember a certain recent Democrat presidential candidate attacking the Bush Administration for awarding no-bid contracts in Iraq to people like Halliburton.

But now that Obama's actually in power, I guess this is some of the change he was talking about:

Despite President Obama's long history of criticizing the Bush administration for "sweetheart deals" with favored contractors, the Obama administration this month awarded a $25 million federal contract for work in Afghanistan to a company owned by a Democratic campaign contributor without entertaining competitive bids, Fox News has learned.

The contract, awarded on Jan. 4 to Checchi & Company Consulting, Inc., a Washington-based firm owned by economist and Democratic donor Vincent V. Checchi, will pay the firm $24,673,427 to provide "rule of law stabilization services" in war-torn Afghanistan.

A synopsis of the contract published on the USAID Web site says Checchi & Company will "train the next generation of legal professionals" throughout the Afghan provinces and thereby "develop the capacity of Afghanistan's justice system to be accessible, reliable, and fair."

The legality of the arrangement as a "sole source," or no-bid, contract was made possible by virtue of a waiver signed by the USAID administrator. "They cancelled the open bid on this when they came to power earlier this year," a source familiar with the federal contracting process told Fox News.


Now, with many of the Bush Administration's no-bid contracts with Halliburton, there was actually a rationale because time was of the essence (fighting oil well fires and repairing the rigs, for instance)and there weren't any other companies out there capable of performing the work in a timely manner or willing and able to underwrite the expense of things like insurance for workers in a combat zone. But that's not the case with this particular cozy arrangement:

"That's kind of weird," said another source, who has worked on "rule of law" issues in both Afghanistan and Iraq, about the no-bid contract to Checchi & Company. "There's lots of companies and non-governmental organizations that do this sort of work." {...}

Corporate rivals of Checchi were reluctant to speak on the record about the no-bid contract awarded to his firm because they feared possible retribution by the Obama administration in the awarding of future contracts.

"We don't want to be blackballed," said the managing partner of a consulting firm that has won similar contracts. "You've got to be careful. We're dealing here with people and offices that we depend on for our business."

Still, the rival executive confirmed that open bidding on USAID's lucrative Afghanistan "rule of law" contract was abruptly revoked by the agency earlier this year.

"It's a mystery to us," the managing partner said. "We were going to bid on it. The solicitation (for bids) got pulled back, and we do not know why. We may never know why. These are things that we, as companies doing business with the government, have to put up with."


Of course, figuring out why Checchi got his sweetheart deal isn't actually too big a head scratcher, now is it?

Less than two months after he was sworn into office, President Obama signed a memorandum that he claimed would "dramatically reform the way we do business on contracts across the entire government."

Flanked by aides and lawmakers at the Dwight D. Eisenhower Executive Office Building on March 4, Obama vowed to "end unnecessary no-bid and cost-plus contracts," adding: "In some cases, contracts are awarded without competition….And that's completely unacceptable."

The March 4 memorandum directed the Office of Management and Budget to "maximize the use of full and open competition" in the awarding of federal contracts.

Federal campaign records show Checchi has been a frequent contributor to liberal and Democratic causes and candidates in recent years, including to Obama's presidential campaign.

The records show Checchi has given at least $4,400 to Obama dating back to March 2007, close to the maximum amount allowed. The contractor has also made donations to various arms of the Democratic National Committee, to liberal activist groups like MoveOn.org and ActBlue, and to other party politicians like Sen. John F. Kerry, former presidential candidate John Edwards and former Connecticut Senate candidate Ned Lamont.

Sources confirmed to Fox News that Checchi & Company is but one of a number of private firms capable of performing the work in Afghanistan for which USAID retained it.


Hoax and change, baby...the Chicago Way.








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