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obama ends sweetheart contract?

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  • texas1willy2

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    Apr 20, 2009
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    woodlands
    Updated January 25, 2010
    Obama Administration Steers Lucrative No-Bid Contract for Afghan Work to Dem Donor
    By James Rosen - FOXNews.com
    The Obama administration this month awarded a $25 million federal contract for work in Afghanistan to a company owned by a prominent Democratic campaign contributor without entertaining competitive bids, Fox News has learned.
    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.

    "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."

    FOXNews.com - Obama Administration Steers Lucrative No-Bid Contract for Afghan Work to Dem Donor

    Contacted by Fox News, Checchi confirmed that his company had indeed received the nearly $25 million contract but declined to say why it had been awarded on a no-bid basis, referring a reporter to USAID.

    Asked if he or his firm had been aware that the contract was awarded without competitive bids, Checchi replied: "After it was awarded to us, sure. Before, we had no idea."

    He declined to answer further questions, however, and again referred Fox News to USAID, saying: "I don't want to speak for the U.S. government."

    Asked about the contract, USAID Acting Press Director Harry Edwards at first suggested his office would be too "busy" to comment on it. "I'll tell it to the people in Haiti," Edwards snapped when a Fox News reporter indicated the story would soon be made public. The USAID press office did not respond further.
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