Allegations Confirmed at GSA

Robert O'Harrow Jr. and Scott Higham, Washington Post - May 23, 2007

In February 2005, an auditor at the General Services Administration presented evidence to agency leaders that one of the government's top technology contractors was overcharging taxpayers.

GSA auditor James M. Corcoran reported that Sun Microsystems had billed the government millions more for computer software and technical support than it charged its commercial customers.

If true, the allegation was grounds to terminate the contract and launch a fraud investigation. Instead, senior GSA officials pressed last summer to renew the contract.

That decision meant the government's leading contracting agency would be able to continue collecting millions of dollars in what are called industrial funding fees from Sun under rules that permit the GSA to take a percentage of every sale made to the government. It also meant that taxpayers would pay millions more than necessary, according to congressional investigators.

GSA chief violated Hatch Act, OSC report finds

Daniel Friedman, Federal Times - May 22, 2007

An Office of Special Counsel report has found that General Services Administration chief Lurita Doan violated the Hatch Act, which bars federal officials from partisan political activity while on the job, sources say.

The report addresses a Jan. 26 lunch meeting at GSA headquarters attended by Doan and about 40 political appointees, some of whom participated by videoconference. During the meeting, Scott Jennings, the White House deputy director of political affairs, gave a PowerPoint presentation that included slides listing Democratic and Republican seats the White House viewed as vulnerable in 2008, a map of contested Senate seats and other information on 2008 election strategy.

According to meeting participants, Doan asked after the call how GSA could help "our candidates."

Doan has until June 1 to respond to the OSC report, which was delivered to her May 18, according to officials. The officials asked to remain anonymous because the report has not been made public.

Watch Senator Charles Grassley (IA) testify on the contracts and watch Rep. Bruce Braley (IA-01) questions Doan on the Hatch Act allegations during the Oversight Committee hearing on March 28, 2007: