Army, Interior Contract To Alaska Native Corporation Illegal: Audit

"The Army and the Department of the Interior violated federal procurement law when they awarded a contract to an Alaska native corporation and allowed it to pass on most of the work to other companies, federal auditors have found."

"United Solutions and Services was hired by the Army in September 2008 under a $250 million contract awarded without competition. It was asked to perform a variety of tasks, including launching a global campaign to prevent sexual assaults in the military.

Though the corporation was tiny and operated out of an executive’s home in Delaware, it qualified for the no-bid deal because it was 51 percent owned by a native corporation called Cape Fox. The contract was managed for the Army by an acquisition office at the Interior Department.

Auditors examining the deal found that Army and Interior officials knew that the corporation, known as US2, 'was too small to do all the work itself.'"

Robert O'Harrow Jr. reports for the Washington Post August 17, 2011.

Source: Wash Post, 08/18/2011