Home » Indictments, Convictions & Arrests » Civilian Contractors » Former USACE program manager Michael A. Alexander & contractor plead guilty to kickback scheme
 

Former USACE program manager Michael A. Alexander & contractor plead guilty to kickback scheme

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Alexander worked for the Army Corps of Engineers from 1979 until the time of his arrest, in October 2011. According to a statement of offense signed by Alexander, he was a program manager with the Directorate of Contingency Operations. In that position, Alexander had authority, among other things, to obtain funding for Army Corps of Engineers projects, including money for projects and programs placed through federal government contracts. He also was responsible for developing requirements for projects and programs. Alexander produced and actively managed a $54 million budget.

The scheme involved the Army Corps of Engineers and two contracts: the Technology for Infrastructure, Geospatial, and Environmental Requirements (TIGER) contract and the Contingency Operations Readiness Engineering & Support (CORES) contract.

The TIGER contract was used by authorized federal government agencies and departments to purchase products and services. It is what is known as an Indefinite Delivery/Indefinite Quantity contract. Authorized agencies and departments are not required to obtain three separate bids or to compare the TIGER contract to another contract before submitting an invoice for products and services through the TIGER contract.

The CORES contract was a planned contract, envisioned as an alternative or potential replacement to the TIGER contract. As planned, the CORES contract would be a five-year contract with an award potential for all contracts placed under it of up to $780 million. The CORES contract has not been issued for solicitation to potential prime contractors.

In his guilty plea, Alexander admitted to carrying out a bribery scheme with others. They included Kerry F. Khan, a colleague, who was then a program manager with the Army Corps of Engineers; Harold F. Babb, the former director of contracts at Eyak Technology LLC (EyakTek), an Alaska Native-owned small business; Alex N. Cho, the former chief technology officer of Nova Datacom, LLC, a provider of information assurance and security services to federal agencies and commercial companies, and McKinney, the president of Alpha Technology Group, Inc., a provider of program management services.

According to the statement of offense, in or around 2006, Alexander and Khan agreed to work together to obtain government contracts for corrupt contractors who would reward them with bribes. Khan had authority, among other things, to place orders for products and services for the Army Corps of Engineers through government contracts, including the TIGER contract, and to certify that the work on the contracts had been completed.

From May 2007 through October 2008, the Army Corps of Engineers awarded contracts and sub-contracts to Alpha Technology, totaling about $1,877,000. McKinney paid Khan a portion of the money that was received, and Khan provided Alexander with $99,100.

From May 2007 through October 2011, the Army Corps of Engineers awarded contracts and sub-contracts to Nova Datacom totaling more than $45 million.

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4 Comments

  1. Comment by ACC WATCH:

    GEEZ – the ARMY again. Surprise surprise. Even the most corrupt congressman would be getting tired of the Army by now. Unless the Congress just don’t want to reform the contracting system and take away all Congressional issued SF1402s from Army contracting officers. Is our Congress stupid ? It seems so.

  2. Comment by FBI WATCH:

    “Bribery and kickbacks have no place in government contracting,” said Assistant Director in Charge McJunkin. “The FBI and our partner agencies will continue to pursue those who engage in such criminal activity, as we work to protect federal funds and American taxpayers. We ask anyone with information about government fraud to contact the FBI.”

    Sorry, the FBI are ineffective and are deleting tips from their National Procurement Fraud Unit email tip address – UNREAD and no action.

    They are damn slow and allow a whole generation to spawn > develop > and reproduce > and pass on to their young ( the newbies ) and the corrpution is not stamped out.

    Camp Arifjan, Kuwait is a classic example of a spawning ground for corruption under Colonel Roger ( Procurement what ) something about Procurement Integrity, the rules designed to counter Daddy Army Major John Cockerham and Daddy Army Major Pressley. The corruption just carries on. There are no solicitations conducted cleanly and ACC should request that their command be dismantled and turn it over to the GAO.

  3. Comment by SBA WATCH:

    “Today’s announcement demonstrates the resolve of law enforcement to aggressively identify and prosecute individuals considering defrauding the federal government by deceit and bribery,” said SBA Inspector General Gustafson. “There are severe consequences associated with this form of criminal conduct, as this case uniquely demonstrates. The SBA OIG will relentlessly pursue fraud in government contracting programs to eliminate corruption, promote fair competition, and serve the American taxpayer.”

    Another total lie. This is the first time they have even showed up at a press conference.

    In Kuwait – EVERY and I mean EVERY Prime contractor does not have a SUBCONTRACTOR PLAN where American SMALL BUSINESS can count on the 45% subcontracted dollars coming to them. No those dollars go the the Lebanese and Kuwait owned businesses that are willing to pay kickbacks and bribes THAT IS THE CAMP ARIFJAN SUBCONTRACTING PROGRAM. GDIT do not have a subcontracting plan, but their program manager will give subcontracts to whoever. GDIT doesn’t even know what a subcontracting plan is and their contracting officer is about to get a lesson in fair and equal treatment of subcontractors.

  4. Comment by Ziad:

    all usace PM corrupted now they have pm named anwar mudher she took 65,000$ from us when she was a PE on our project at VBC so we can close the contract because it had some wrong design

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