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Space Force delays deal to 'further evaluate' contractor found to have acted fraudulently [View all]
Source: Washington Post
Space Force delays deal to ‘further evaluate’ contractor found to have acted fraudulently
Facts uncovered in a Texas lawsuit prompted the military to review a $12 billion space technology program
By Aaron Gregg
12/30/2020, 6:00:19 a.m.
A contract to oversee up to $12 billion in Space Force technology funds is being held up while the nascent military service evaluates fraud findings from an obscure Texas business dispute, casting fresh scrutiny on an emerging industry of nonprofit companies that handle acquisitions on the government’s behalf.
In early December, the Space and Missile Systems Center, a Los Angeles-based unit of the Space Force, announced it had selected a nonprofit called NSTXL to oversee billions of dollars in contracts over a 10-year period. Its role managing the consortium is similar to an outsourced procurement office, carrying out work that would otherwise be handled by seasoned bureaucrats while other companies receive the contracts themselves.
Such consortium managers have largely escaped the public eye despite their increasing power in military procurement. But the fraud findings are likely to start a more serious conversation regarding their role, and the case has already complicated NSTXL’s relationship with the military.
The Space Force was not aware of the long-running litigation that uncovered the fraud when it evaluated bids, said Space and Missile Systems Center spokeswoman Capt. Caitlin Toner. The agency now plans to delay the contract award so it can “further evaluate” the litigation, Toner said.
The agency “was not made aware of the (Harris County) litigation during our source selection evaluations which were completed prior to the court ruling; however, the SMC team is further assessing the matter,” Toner said in an email.
-snip-
Facts uncovered in a Texas lawsuit prompted the military to review a $12 billion space technology program
By Aaron Gregg
12/30/2020, 6:00:19 a.m.
A contract to oversee up to $12 billion in Space Force technology funds is being held up while the nascent military service evaluates fraud findings from an obscure Texas business dispute, casting fresh scrutiny on an emerging industry of nonprofit companies that handle acquisitions on the government’s behalf.
In early December, the Space and Missile Systems Center, a Los Angeles-based unit of the Space Force, announced it had selected a nonprofit called NSTXL to oversee billions of dollars in contracts over a 10-year period. Its role managing the consortium is similar to an outsourced procurement office, carrying out work that would otherwise be handled by seasoned bureaucrats while other companies receive the contracts themselves.
Such consortium managers have largely escaped the public eye despite their increasing power in military procurement. But the fraud findings are likely to start a more serious conversation regarding their role, and the case has already complicated NSTXL’s relationship with the military.
The Space Force was not aware of the long-running litigation that uncovered the fraud when it evaluated bids, said Space and Missile Systems Center spokeswoman Capt. Caitlin Toner. The agency now plans to delay the contract award so it can “further evaluate” the litigation, Toner said.
The agency “was not made aware of the (Harris County) litigation during our source selection evaluations which were completed prior to the court ruling; however, the SMC team is further assessing the matter,” Toner said in an email.
-snip-
Read more: https://www.washingtonpost.com/business/2020/12/30/space-force-contract/
Alternate link: https://www.msn.com/en-us/news/us/space-force-delays-deal-to-further-evaluate-contractor-found-to-have-acted-fraudulently/ar-BB1cljGb
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