In October, CALPIRG released a new report documenting that companies with immediate histories of shoddy work and fraudulent practices still receive billions of dollars in federal contracts. The report, “Forgiving Fraud and Failure: Profiles in Federal Contracting,” highlights nine representative examples of new, often no-bid contracts granted to companies with records of poor performance.
For example, the Army, Navy and Air Force purchased equipment from contractors that had previously delivered faulty or untested equipment, and the IRS purchased data management and security from companies that recently experienced serious data breaches.
CALPIRG is urging federal agencies to increase disclosure of contract information, increase competition, and strengthen the rules to screen bad actors.