Ethics Corner

This series on ethics presents cautionary examples drawn from the DoD Standards of Conduct Office Encyclopedia of Ethical Failures.

If you have questions about ethics or are unsure about a certain course of conduct, contact the NASCC Staff Judge Advocate’s office by calling (361) 961-3535.

Today’s story is about how one thing leads to another.

A misuse of government resources investigation hit unexpected pay dirt when it uncovered a contractor procurement and bribery scheme. Investigators responding to a hotline tip substantiated a misuse of funds claim when they found a civilian utilities manager at a military command rented a 350-ton crane to move electrical generators seven days before it was needed; costing the government $35,000. The investigation also uncovered a complicated contract bid rigging, bribery and kickback operation involving the utilities manager and a service contractor. The manager manipulated and sole-sourced work to the contractor; reportedly to drive business to the contractor in order to transition to a job with them after his government job. The manager used government funds to purchase expensive tools, plasma TVs, and laptop computers that turned up missing. He also allowed the contractor to use government personnel, tools, and equipment to do the contractor’s work. He submitted false invoices on behalf of the contractor, resulting in a $1.3 million loss to the government. As a result of a plea deal for cooperation in additional procurement investigations, the manager was sentenced to 15 months in prison and debarred from government contracting for four years. This investigation touched off five separate criminal investigations against other contractors in that military service regarding allegations of bid rigging.