“Killing Fraud” _ Part II

From: U.S. Department of Energy, Office of Inspector General, Office of Audits and Inspections: November 2014

SPECIAL INQUIRY: Alleged Attempts by Sandia National Laboratories to Influence Congress and Federal Officials on a Contract Extension

The Department of Energy’s Sandia National Laboratories (SNL) is a Government-owned, contractor-operated laboratory that is part of the National Nuclear Security Administration’s (NNSA) nuclear weapons complex. In 1993, the Management and Operating (M&O) contract was competitively awarded to Sandia Corporation, a wholly owned subsidiary of Martin Marietta. In 1995, Martin Marietta and Lockheed Corporation merged to form the Lockheed Martin Corporation (LMC). In 1998, the Department noncompetitively extended the SNL contract. The contract was set to expire on September 30, 2012, but it was extended for 12 months with two 3-month option periods, which extended the contract for an additional 6 months beyond the September 30, 2013 expiration date. On March 17, 2014, the Department announced that it was moving forward with a noncompetitive extension for a period of 2 years with an option for a third year while NNSA prepared for a full and open competition.

Prompted by an Office of Inspector General inspection report on Concerns with Consulting Contract Administration at Various Department Sites (DOE/IG-0889, June 2013), the NNSA’s Sandia Field Office conducted a preliminary review of documentation from 2009 through 2011 regarding consultant activities between Heather Wilson, LLC (the principal of which is a former member of the U.S. House of Representatives) and SNL. On March 27, 2013, the Sandia Field Office alleged that SNL impermissibly attempted to influence an extension to the Sandia Corporation contract and engaged Ms. Wilson in these activities.
Given the seriousness of this allegation, the Office of Inspector General initiated a Special Inquiry into the facts and circumstances surrounding the allegation.

RESULTS OF SPECIAL INQUIRY: Our inspection substantiated the allegation. We found that SNL used Federal contract funds to engage in activities that were intended to influence…

Full Report, click here.



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