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City to Fire 23 Technology Office Contractors

More fallout from the arrests of a D.C. technology office manager and contractor on bribery charges last week.

Government sources tell D.C. Wire that city officials today plan to terminate 23 contractors tied to three companies named in the affidavit from federal law enforcement authorities charging manager Yusuf Acar and Sushil Bansal, the contractor who owns Advanced Integrated Technologies Corporation.

Seventeen of the contractors work for AITC; four work for Circle Networks, a company partially owned by Acar, and two work for Innovative IT Solutions, which is also linked to Bansal.

Bansal's companies received more than $13 million worth of city contract, while Circle Network received $2.2 milion. Acar has been charged with conspiring with Bansal to steal city money through schemes involving "ghost" workers and kickbacks. Both have been arrested.

Mayoral spokeswoman Mafara Hobson declined to comment, citing the ongoing federal investigation.

Update 4:12 p.m.: An employee in the Office of the Chief Financial Officer, who used to work in the technology office with Acar, has been placed on administrative leave in connection with the case, financial office spokesman David Umansky said. That employee, whose identity has not been made public, was identified in the affidavit as "F.A.". The financial office also has changed all passwords to its computer systems as a precaution, Umansky said.

Update 4:43 p.m.: Four full-time city government employees in the technology office also have been placed on leave, sources said.

By David Nakamura, Elissa Silverman and Nikita Stewart

By David A Nakamura  |  March 18, 2009; 1:18 PM ET
Categories:  Crime and Public Safety  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: It's Summer Job Season Again
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Comments

this is just the tip of the iceberg! Half of OCTO is supposedly contractor. Look at what DC gets for it's investment in technology via OCTO. OCTO offices are state of the art. Technology in DC is still pre-historic!

Posted by: oknow1 | March 18, 2009 1:51 PM | Report abuse


Please name names in a pdf.


these employees do more than just rip off the government. They go out into the community and rip the community off

name names and I can assure you everyone else thinking of ripping the government off might think twice.

we need to hold evey employee responsible to the taxpayers.

name names

Posted by: JohnAdams1 | March 18, 2009 1:55 PM | Report abuse

With regret but defensible logic, I think we need to look into the management regime of Mr. Kundra in his old job. Now.
Trying mightily to give him the benefit of the doubt, I am concerned about his powers of observation. He won't have to look for fraud while in OMB, but is he all there, management-wise? Does he take responsibility for being the captain of his ship, so to speak? He needs to go on the public record about what he knew, when, and why he was not on to this apparently massive fraudulent activity.

Posted by: axolotl | March 18, 2009 2:07 PM | Report abuse

Not all contractors are bad people, JohnAdams1. It is appropriate to "Name names" only when it is proven they knew of the crime and failed to act. That is a mean-spirited reaction that can only hurt the law-abiding people, when what needs to happen is a proper investigation first.

I would not doubt that some thought they were working for a legitimate company, with proper government contract oversight, and had little reason to think otherwise. Much like in the Madoff case, the loyal working employees will suffer, when the crimes were likely committed and hidden by a few people at the top.

Ultimately who should really be faulted is the oversight system (or absence thereof) for so many years. Just like in the case of the DC tax office scandal, where was the oversight and proper auditing to catch this? THAT office has some major explaining to do, and to "Name names!"

Posted by: borkborkbork | March 18, 2009 2:16 PM | Report abuse

What a murky government.

The hits just keep on coming.

Great work Feds. Keep-up the works.

Posted by: eglobegus | March 18, 2009 2:21 PM | Report abuse

what about the government employees? Why not fire them?

Posted by: optik_b | March 18, 2009 2:27 PM | Report abuse

How many of the players know personally or are related to the mayor? Just curious ...

Posted by: southyrndiva | March 18, 2009 2:34 PM | Report abuse

Time to go with Reliable contractors such as IBM, Raytheon, CACI, Lockheed Martin, ManTech, etc., They have to meet higher standards for government contracts so cost a bit more, but in terms of IT ( as opposed to costly and unproven weapons systems) they have a solid history of cutting edge services. Your better IT people generally prefer working with a larger company with all the benefits as well (not to disparage those hard working and honest entrepreneurs of which I'm sure there are many).

Posted by: liveride | March 18, 2009 2:47 PM | Report abuse

Sorry, they've got to meed their 8(a) quota.

Posted by: tiger_caddy_31 | March 18, 2009 2:57 PM | Report abuse

"Time to go with Reliable contractors such as IBM, Raytheon, CACI, Lockheed Martin, ManTech, etc."

Unfortunately, the big boyz won't touch the District with a ten-foot pole. They're quite well aware of the sleaze.

Posted by: LongTimeRez | March 18, 2009 2:58 PM | Report abuse

Accenture, Bearingpoint, KPMG LLP, PriceWaterhouse Coopers, and a lot of software firms will touch the district.

It is interesting that the commenter who recommended the big-name IT firms did not recount their rap sheet of blown contracts, false claims act suits and settlements, and very high costs.

But back to the subject: can Kundra oversee a contractor without being taken? that won't be his focus in OMB, but for goodness sake, it does speak to his grasp of reality and good management. An investigation will help clear the air, which is getting foul, or so it seems.

Posted by: axolotl | March 18, 2009 3:44 PM | Report abuse

wow axolotl, you just namend exactly that


"did not recount their rap sheet of blown contracts, false claims act suits and settlements, and very high costs."

=
Accenture, Bearingpoint, KPMG LLP, PriceWaterhouse Coopers


Posted by: cjs58 | March 18, 2009 3:58 PM | Report abuse

What was Acar’s main goal? Did they want to get rid of all other IT professionals that work for the DC Gov now and bring in his own people? Did OCTO have any CIO's working inside other Gov agencies doing dirty work?

Posted by: whoknows1212 | March 18, 2009 4:04 PM | Report abuse

Time to go with Reliable contractors such as IBM, Raytheon, CACI, Lockheed Martin, ManTech, etc., They have to meet higher standards for government contracts so cost a bit more, but in terms of IT ( as opposed to costly and unproven weapons systems) they have a solid history of cutting edge services. Your better IT people generally prefer working with a larger company with all the benefits as well (not to disparage those hard working and honest entrepreneurs of which I'm sure there are many).
----------------------------------

This is the single most idiotic post I have ever read. Higher Standards? Raytheon and ManTech stole hundreds of millions of dollars of tax-payer money by getting the business set-aside for true Small Businesses. (See http://www.asbl.com/) This was done by getting Small Business Administration to certify them as a Small Business. I have personal stories about CACI and Lockheed Martin that would make you shudder, but since it would probably really upset our current customers, I’ll leave it alone.
The statement ‘Your better IT people generally prefer working with a larger company with all the benefits as well’ is another totally ridiculous statement. Smaller 8(a) firms generally have much smaller overhead margins and employee pay is substantially much higher, while the benefits are normally the same. In addition, smaller IT companies actually work harder and are more proactive to the customers needs.

Posted by: question-guy | March 18, 2009 4:49 PM | Report abuse

As an ex-employee of DC government I saw daily evidence of contractors masquerading as OCTO employees. During the Suzanne Peck reign and more recently Kundra, favorite contractors really run the department. Contracts were awarded without any competitive bid process

Posted by: gc123 | March 18, 2009 5:10 PM | Report abuse

I want to see Suzanne Peck arrested. She hired these non-American criminal contractors. She was notorious for ignoring contracting legal restrictions.

I am still floored that this one contractor received a one year contract worth 10 Million Dollars. Did this not raise any red flags anywhere in D.C. Government? Office of Contracts and Procurement? Executive Office of the Mayor? D.C. Council? Office of the Inspector General? Office of the Attorney General?

This was/is a colossal failure at the highest level of D.C. Government.

I am sick and tired of this reactionary government functioning.

Fenty has done nothing more than respond to the media as opposed to running an efficient, transparent government.

I guess when he, himself, is lying about "private" trips to the UAE and China, we cannot much expect him to remain true to his campaign promises.

This city leaves much to be desired.

Posted by: concernedaboutdc | March 18, 2009 6:16 PM | Report abuse

It's time to hold Kundra responsible for this mess. How can he even be trusted to watch over the federal IT investments, when he did so little to ensure that the money was spent properly and legally within DC?

Posted by: wcrosby | March 22, 2009 12:41 AM | Report abuse

The comments to this entry are closed.

 
 
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