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Booz News: Top Contractor Booz Allen Making Headlines for the Wrong Reasons

Scott Amey – (POGO) – The Securities and Exchange Commission (SEC), the agency responsible for protecting investors and economic markets, has awarded millions of dollars to top 100 federal contractor Booz Allen Hamilton for management support services. According to Reuters, some lawmakers and SEC insiders are questioning the fiscal wisdom of the SEC’s decision.

“If they’re not careful, agencies can spend billions of taxpayer dollars on outside studies and contractors and have nothing to show for it,” Senator Charles Grassley (R-IA) told Reuters, adding that “The SEC appears to be headed down this path in hiring a consultant to implement another consultant’s work.”

As Reuters reports, Booz Allen consultants are costing the SEC anywhere from $100 an hour to over $300 an hour and are being paid an average of $140 per hour as compared to $93 per hour for SEC staff. That’s a differential of over 50 percent, which over a year is a cost premium of nearly $100,000 to have Booz perform those jobs.

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U.S. Navy employee (ret) Gregory Penk pleads guilty to providing bid tips to contractor Booz Allen Hamilton

St. Mary’s County Former Navy Employee Pleads Guilty to Disclosing Contractor Bid Information

Penk’s plea agreement states that from 1969 until last July, he worked for the Navy in St. Inigoes, and in 2001 became a division director for an identification systems division. In June 2010, the plea agreement states, the Navy solicited bids for a new Naval Air Warfare Center-Aircraft Division contract for services that previously had been provided by Booz Allen Hamilton, which was one of the companies submitting bids on the new contract.~ John Wharton, SoMdNews

Unlawfully Provided Competitive Bid Information for a New Naval Air Warfare Contract
(DoJ) – Greenbelt, Maryland – March 7, 2012 - Retired U.S. Navy employee Gregory Roger Penk, age 64, of Patuxent River, Maryland, pleaded guilty late yesterday to unlawfully disclosing procurement contractor bid and source selection information.

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