Subcontracting: Who's Minding the Store?
On July 26, 2010, the federal Commission on Wartime Contracting in Iraq and Afghanistan held a hearing on subcontracting in war zones. With three panels of witnesses representing government agencies, prime contractors, and subcontractors, the Commission examined the transparency and accountability challenges associated with subcontracting. The underlying theme of the hearing was whether the government needs additional controls over subcontractor performance and costs to ensure that prime contractors are meeting their legal obligation to adequately manage their subcontractors.
The Commission probed the three panels on the current business systems used by prime contractors to manage subcontractors, which the Commission believes to be the first line of defense against subcontracting waste, fraud and abuse. The Commission’s examination explored potential improvements to subcontractor oversight and visibility.
Witnesses on the first panel represented government agencies: Edward Harrington, Deputy Assistant Secretary of the Army for Procurement; Patrick Fitzgerald, Director, Defense Contract Audit Agency (DCAA); Cathy Read, Director, Acquisition Management, Department of State; Drew W. Luten III, Acting Assistant Administrator for Management, United States Agency for International Development (USAID).
The second panel comprised representatives of prime contractors: Cheryl Ritondale, Global Director, Procurement and Supply Management, KBR, Inc.; Norm Powell, Vice President and Government Business Acquisition Executive, Fluor Corp.; John Supina, Senior Vice President, Business Administration, DynCorp International; Chris Taylor, Chief Executive Officer, Mission Essential Personnel, LLC.
The third panel representated subcontractors: Fred Brune, President, Government Facilities & Infrastructure, CH2M Hill (subcontractor to DynCorp); Perry Dalby, Manager and Ethics Committee Director, Tamimi Global, Ltd. (subcontractor to KBR); Paul Hinks, CEO, Symbion Power Services (subcontractor to Louis Berger/Black & Veatch); Mark Kleckner, Chief Operating Officer, McNeil Technologies (subcontractor to DynCorp); Marc Krens, Chief Financial Officer, The Diplomat Group (subcontractor to Fluor); Jerry Torres, President and CEO, Torres Advanced Enterprise Solutions, LLC (subcontractor to MEP).
The hearing began at 9:30 a.m. in Room 106 of the Dirksen Senate Office Building in Washington, DC. Commission Co-Chair Christopher Shays presided.
- Commissioners Commissioners
- Hearing Room Hearing Room
- Panel 1 Panel 1
- Panel 2 Panel 2
- Panel 3 Panel 3
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Transcript: Transcript of July 26, 2010 hearing
Edward Harrington (DoD)
Patrick Fitzgerald (DCAA)
Cathy Read (DoS)
Drew W. Luten III (USAID)
Cheryl Ritondale (KBR)
Norm Powell (Fluor)
John Supina (DynCorp)
Chris Taylor (Mission Essential Personnel, LLC)
Fred Brune (CH2M Hill; subcontractor to DynCorp)
Perry Dalby (Tamimi Global; subcontractor to KBR)
Paul Hinks (Symbion Power Services; subcontractor to Louis Berger/Black & Veatch)
Mark Kleckner (McNeil Technologies; subcontractor to DynCorp)
Marc Krens (The Diplomat Group; subcontractor to Fluor)
Jerry Torres (Torres Advanced Enterprise Solutions; subcontractor to MEP)