Please find below an example of UPI's continuing coverage of the
Department of Homeland Security, published yesterday. A shorter version
appeared on A9 of this morning's editions of the Washington Times. I
hope you find it interesting. You may link to the full length version on
the Web here:

http://www.upi.com/inc/view.php?StoryID=20060519-125924-6121r

If you would like more information about UPI's Security and Terrorism
service, or to stop receiving these alerts, please get in touch.
  
Shaun Waterman
UPI Homeland and National Security Editor
E-mail: [EMAIL PROTECTED]
Tel: 202 898 8081

House will probe DHS transport contract with firm linked to bribery
probe
By SHAUN WATERMAN
UPI Homeland and National Security Editor

WASHINGTON, May 18 (UPI) -- U.S. lawmakers say they will hold hearings
to probe a Department of Homeland Security transport contract, which
members of Congress from both parties charge raises procurement and
security concerns. 

Department officials have vigorously defended both the way the contract
was awarded and the security procedures under which it is operated. They
have launched a push-back on Capitol Hill, visiting with lawmakers in an
attempt to assuage concerns. 

Despite their efforts, Rep. Mike Rogers, R-Ala., chairman of the
oversight subcommittee of the House Committee on Homeland Security, said
Thursday he wanted to hold a hearing on the contract award -- to
Alexandria, Va.-based Shirlington Limousine and Taxi. 

Aides said later he hoped the hearing could happen when Congress returns
from its Memorial Day recess in mid-June, but that the timing would
depend on when they were able to get documentation from the department. 

The hearing is the latest in a series of moves lawmakers have taken
since the Shirlington contract came into the spotlight at the end of
last month after media reports that the company was under scrutiny as
part of a congressional bribery probe. 

The company was said to have provided limousines that took prostitutes
to parties where lawmakers -- including since-jailed California GOP
congressman Randall "Duke" Cunningham -- were allegedly being
entertained by intelligence and defense contractors. Shirlington's
owner, Christopher Baker, reportedly has a lengthy criminal record and a
troubled financial history. 

Last week, the committee's ranking Democrat, Mississippi Rep. Bennie
Thompson, wrote to the department's inspector general, asking questions
about how the contract was awarded. 

He expressed concerns that the contract was not bid out properly; that
the company might not qualify for the special "set-aside" status under
which it was entitled to bid; and that the department might not have
fulfilled its due diligence requirements with respect to ascertaining
that the company was a responsible contractor. 

With a speed that surprised some familiar with the department's often
arthritic response to congressional requests, its Chief Procurement
Officer Elaine Duke met with Thompson last week and Wednesday provided
written answers to the questions he had posed the inspector general. 

In the letter, a copy of which was obtained by United Press
International, she explains that Shirlington first won the contract in
April 2004, under the set-aside provisions of a small business program
for Historically Under-utilized Business Zones, known as HUBZone. 

The program is administered by the Small Business Administration, which
ruled that Shirlington qualified when its status was later challenged by
one of the unsuccessful bidders. 

Details of the proposed contract were posted on the government's Federal
Business Opportunities Web site, and four companies made offers. Three
of them were eventually ruled ineligible, wrote Duke, but the Federal
Acquisition Regulations specify that in such circumstances, the award
should be made to the remaining qualified bidder. 

In any case, she said, the determination that Shirlington's offer
represented the best value was made when there were still two companies
in contention. 

Regarding questions about Shirlington's fitness as a bidder, Duke said
that department procurement staff had performed a series of routine
credit and financial checks on the company. 

A Thompson aide, who asked for anonymity, said officials had failed to
do proper due diligence checks which would have revealed the troubled
personal and financial history of Shirlington's owner. 

The aide also said that the 2004 award "doesn't pass the smell test." 

The contract Shirlington is currently operating was awarded in October
last year. It is for one year, renewable for each of four years
thereafter, for a total potential value of more than $21 million. 

Under the contract, Shirlington provides 12 shuttle buses and 16 drivers
for them to ferry homeland security employees between the department's
many Washington facilities. The buses, which can hold up to 25 people,
run continuously on 10 routes for 12 hours every work day. 

In addition, the company provides drivers for 10 sedans the department
leases to carry senior officials. 

Officials stress that the company has performed the contract very
satisfactorily. "There have been no performance issues," Department of
Homeland Security spokesman Russ Knocke told UPI. 

He said the department had launched a push-back on the issue, taking
Duke to the Hill to visit with lawmakers in an effort to assuage their
concern, and correct what Knocke said might be misperceptions. 

"Sometimes the facts are not made entirely clear in news accounts,"
Knocke told UPI. 

Republicans have also raised questions about the security implications
of the contract. At a hearing of his sub-committee Thursday, Rogers
suggested that the department should pierce the corporate veil and look
into the backgrounds of the officers and directors of small companies
before contracts are awarded. 

But according to briefings given to lawmakers, the cars and shuttle
buses are all kept secured at department headquarters overnight, and
Shirlington's operations there are overseen by a 20-year veteran of the
U.S. Secret Service who inspects the vehicles before they leave each
morning and when they return at night. 

All drivers for the senior officials' sedans are subjected to full
background investigations and criminal record checks as though they were
being assessed for a security clearance. 

"There are no security concerns whatsoever," said Knocke. 

Another administration official questioned the need for the hearing at
all. "Will this hearing make us any safer?" he asked. "Aren't there more
important things they should be doing?"

Copyright 2006 United Press International, Inc. All Rights Reserved



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