Something strange is going on in Washington. The White House has canceled a nearly $25 million contract that was awarded just weeks ago to one of Obama’s donors. Checchi & Company Consulting, a Washington-based company owned by economist Vincent V. Checchi, was contracted “to provide Rule of Law Stabilization services” in Afghanistan without facing competitive bidding.
Apparently forgetting yet another campaign promise to end the days of “sweetheart deals,” President Obama bestowed the no-bid contract on a donor who has a record of supporting progressive Democrats and activists like Sen. John Kerry and MoveOn.org and who contributed $4,400, which is almost the maximum amount allowed, to Obama’s personal campaign.
According to the contract, the government would pay $24,673, 427.00 to Checchi for their efforts to “develop the capacity of Afghanistan's justice system to be accessible, reliable, and fair…[and] advance key reforms in the judiciary and the law schools to develop the capacity of the state courts and to train the next generation of legal professionals.”
Fox News reported the story more than a week ago, but it did not receive coverage on other networks. Fortunately for American taxpayers, some lawmakers in Washington did take notice. Ranking Republican on the House Oversight and Government Reform Committee, Rep. Darrell Issa, R-Calif., wrote a letter to Rajiv Shah, administrator of the U.S. Agency for International Development (USAID), whose signature on a waiver made the no-bid contract possible. In the letter, Issa requested “all documents related to the Checchi contract” be provided on or before February 5. He told Shah to “…be sure to include all email correspondence about the Checchi contract” in the submitted documents.
Shah signed the waiver under a provision that has been in place since 2003, which Issa pointed out was intended to allow for resources to reach the troops in the Afghan warzone. Issa wrote that, “On its face, the consulting contract awarded to Checchi to support the Afghan justice system does not appear to be so urgent or attendant to an immediate need so as to justify such a waiver."
Someone in Washington agreed.
"If you want to say this violates the basis on which this administration came into office and campaigned, fair enough," State Department Spokesman P.J. Crowley told Fox News. Crowley said that USAID cancelled the contract and is now working on a suitable resolution.
While both political parties are known for making these types of “sweetheart deals”, the Associated Press reported that more than $242 million, which is almost a quarter of the Pentagon’s spending, from their portion of the $787 billion stimulus was awarded through no-bid contracts, which frequently cost taxpayers more money.
Maybe Obama should reread the memorandum he signed shortly after taking office, which stated “…executive agencies shall not engage in noncompetitive contracts except in those circumstances where their use can be fully justified and where appropriate safeguards have been put in place to protect the taxpayer.” Because there is little doubt that taxpayer interests are not part of the equation when the federal government would rather pull the plug on a multi-million dollar contract than turn over some paperwork.
After the competitive bidding process is over, Checchi, who has worked on government projects for several years, may still win the contract, but at least at that point, Americans will know they are getting the most bang for their buck.
