DOD investigating contracts, reviewing procedures

  • Published
WASHINGTON (AFPN) --  The Defense Department's director of acquisition announced Nov. 9 actions being taken to investigate contracts made by Darleen Druyun and initiatives to eliminate future potential for unethical behavior.

Earlier this year, Mrs. Druyun pleaded guilty to conspiracy to violate Title 18, Section 208 of the U.S. Code. This law prohibits officers and employees of the United States from participating personally and substantially in any matter in which they have a personal financial interest. Mrs. Druyun improperly negotiated employment with the Boeing Company while employed as an Air Force acquisition official negotiating with Boeing on behalf of the Air Force.

She was sentenced Oct. 1, to nine months in federal prison.

As part of her sentencing, Mrs. Druyun admitted that she favored Boeing in certain contract negotiations as a result of her employment negotiations and other favors provided by Boeing to her. Since her daughter and son-in-law worked for the company, and she was also interested in working for Boeing, she reported a sense of obligation to the company.

Air Force officials reacted with outrage.

“Her violation of core values is an affront to all who serve in the Air Force, especially those serving in the acquisition community,” said Dr. Marvin R. Sambur, assistant secretary of the Air Force for acquisition.

"When this came to light there were two reactions -- shock and anger," Dr. Sambur said. "Her criminal actions went completely against our core values of integrity, service before self and excellence. She not only broke the law, she betrayed the trust and responsibility placed in her. Her self-serving activities have damaged the credibility of the entire institution."

While Mrs. Druyun was still employed in the Air Force, Air Force officials recognized the structure had the potential for abuse. Beginning in March 2002, the Air Force embarked on a comprehensive strategy to change its acquisition structure and processes:

-- Creating the Acquisition Center of Excellence to improve program structure and execution in March 2002.

-- Realigned Mrs. Druyun's responsibilities; removed her source selection and head of contracting authorities.

-- Eliminating Mrs. Druyun's position upon her departure in November 2002.

-- Realigning the program executive office reporting structure and decentralized program execution responsibilities outside of Washington.

-- Implementing quarterly program executive office program reviews, monthly and weekly status reporting, and automated program reporting and tracking tools.

-- Directing that the assistant secretary for acquisition be briefed on all major source selections before contract awards.

Michael W. Wynne, principal undersecretary of defense for acquisition, technology and logistics, said he and Dr. Sambur were concerned with the concentration of authority Mrs. Druyun had before she was sentenced. Both officials had discussed methods to diminish the power she had, but "we had no idea what was coming," Mr. Wynne said.

Mr. Wynne said the DOD has also taken steps in dealing with the aftermath of the Druyun case.

Competing defense contractors Lockheed Martin, BAE and L3 Com have all filed protests. The Air Force recommended that the unclassified protests be moved to the Government Accountability Office to ensure a fair and impartial review.

Mr. Wynne agreed, adding, "In each case, the contractors informed me that (they) recognize this is a problem that was (beyond) anybody's expectation. They felt the perception of impartiality was important to maintain. The GAO is a standing figure that can offer us that."

Protests from the defense contractors questioned, among other things, the handling of contracts involving the C-130 Hercules modernization project, the small diameter bomb and certain classified programs.

Mr. Wynne said he asked Sallie Flavin, deputy director of the Defense Contract Management Agency, to form a team to survey all contract actions Mrs. Druyun may have been involved in during her Air Force tenure. The team would include DOD, Army and Navy officials and would be supported by data supplied by the Air Force.

The team would look not only at scenarios where Mrs. Druyun was the source selection official for a contract, but would extend into any area where her influence may have been exerted. These areas include contract extensions and award fees.

According to Mr. Wynne, the DOD is convening a review board of internal and external experts under the leadership of the defense science board. The task force would be comprised of academics skilled in business management and ethics.

"The purpose of the review is to provide advice on how she accrued enough power to get into a situation where she could do this," Mr. Wynne said. "Then to tell me what checks and balances we need to put in via policy. Is there a best practice in the major acquisition organizations that is already there that I can adopt, or do we need to create one?"

The task force would review all major service components, for both insight and to see if other officials in the Department have accrued the same power Ms. Druyun had.

"Our ultimate objective," Dr. Sambur said, "is for our acquisition structure and processes to reflect the integrity that our people and the American public expect of their Air Force."