Friends:
An obscene bribery scandal added to the VA's recent "secret list" affair. It is not getting any play to the best of my knowledge, so thought I'd show you what we're facing in public procurement bribery.
The problem is in fact systemic, and why I fight so hard against "Exclusion" in competitive bid scenarios. People like this don't give a second thought to stealing your money, and using it for a lifestyle of conspicuous consumption.
http://www.durabilityanddesign.com/news/?fuseaction=view&id=11089&nl_versionid=3894
Thank you to the fine people of "Durability And Design"
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A former director of two Veterans Affairs
hospitals has admitted taking nearly $400,000 in bribes and kickbacks to steer
contracts to a nationwide design-build firm—apparently, just the beginning of
what the firm saw as a long and lucrative relationship.
William D. Montague, 61, of
Brecksville, OH, former director of the Cleveland and Dayton VA Medical Center,
pleaded guilty Feb. 20 to 64 federal criminal counts related to trading
confidential construction information with the as-yet-unidentified firm in
exchange for cash and gifts.
The firm had been bidding on a series of
fixed-price services contracts (known as Indefinite Delivery, Indefinite
Quantity, or IDIQ, contracts) with the VA. Among other things, Montague
"solicited money and a consulting contract" from the firm "in
exchange for information related to VA contracts and projects."
'Business 75'
The FBI has so far identified the firm only as
Business 75, "an integrated design firm with offices throughout the United
States, including New York, Illinois, Virginia, Missouri, and California."
The company performed work for the VA directly
and through joint ventures and other teaming agreements, according to the
indictment.
Montague pleaded guilty Feb. 20 to conspiracy
to commit honest services mail fraud, violating the Hobbs Act, money
laundering, multiple counts of wire fraud, mail fraud, disclosing public
contract information, and a host of other charges, the FBI announced.
Montague served as director of the Cleveland
VA Medical Center from 1995 until Feb. 3, 2010. On March 11, 2011, he began
working as director of the Dayton VA Medical Center, a position he held through
Dec. 17, 2011, according to the indictment.
Email Trail
The superseding indictment details interactions between Montague and Business 75, including
internal emails by both parties, the FBI said.
In one email in March 2011, a Business 75
executive noted one $15 million contract that would include $12 million in
sales, leaving a $3 million fee for the firm "on the table... ."
"[O]ne of MONTAGUE’s
jobs will be to fill up the bucket by directing task orders toward our contract,
Going forward, we have two $15M buckets to fill (Central and Eastern regions).
That’s a lot of shoveling to get to $30M…BILL has the relationships to help us
maximize the contracts…"
William Montague was director of the new Louis
Stokes VA Medical Center in Cleveland in 2010 when Rear Adm. Julius S. Caesar
(right) toured the facility.
The same email noted that five additional VA
hospital projects totaling more than $1.2 billion were in the pipeline, adding:
"Montague told us about these before they were advertised, which has
allowed us to get an early start in developing the team. If we bring him on
board, he can help us pull in one or two of these large projects."
House of Montague
Montague used a financial-services firm he
created, called House of Montague, to facilitate the scheme, according to the
FBI.
For example, on March 1, 2011, Business 75
issued a $20,000 check to Montague, which he deposited into the House of
Montague’s account.
Ten days later, the FBI said, Business 75’s
principal emailed employees with Montague’s consulting agreement, explaining:
“His job is to help us bring in more work from the VA, in part by helping us
access key decision makers,” according to the indictment.
The indictment also spells out double-dipping
by Montague.
On May 26, 2011, it says, Montague traveled to
Washington, D.C., on VA business. Several weeks later, he submitted a
government expense report for $1,204 for the trip. Even before he submitted
that report, however, he also invoiced Business 75 for $2,741 for “consulting
services” related to the same trip, including the hotel bill for which he also
later billed the government.
Montague also deceived other VA employees into
providing him with documents and information later shared with Business 75, the
indictment said.
'The Motherlode'
On another occasion, the indictment says,
Montague boasted by email to another firm (identified as Business 74) that he
had "obtained the priority scored list of all scored projects for next
fiscal year. It is unpublished and unavailable elsewhere."
Did that sting?
Our Federal Procurement Laws allow people like Montague to game the system. Beautifully illustrated by Montague's greed, and organized scheme.
The VA buys from Purchasing Cooperatives who eliminate fair competition for "Preferred Vendors".
"Exclusion" creates a sucking vortex for taxpayer dollars. It is ALL by "Design" folks, and I see it every day.
Anytime you see a firm bragging about how much public work they get, ask yourself why. In many cases, there is a "Montague" facilitating the lopsided "Capture Ratio".
Humbled by those of you who make time to read what I have to say, and much appreciation to my gentle friends across the globe.
Please reject negativity in all forms, and always remember to keep looking "UP".
Respect,
Robert R. "Ron" Solomon
Director, Roof Consultant's Alliance (3,700 Members)
Public Procurement Analyst
CCC 1325620
