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FederalDaily - July 27, 2005

Contractor Pays $42 Million for False Travel Claims
Senator Acts to Delay BRAC
Study Shows Brain Cancer among Gulf War Vets
GAO Reports Problems with DoD Business Modernization

Contractor Pays $42 Million for False Travel Claims

Earlier this month the Department of Justice announced that Price Waterhouse Coopers (PWC) agreed to pay $41.9 million to settle allegations that it made false claims to federal agencies for travel reimbursement. PWC received rebates on its travel expenses from travel and credit card companies, airlines, hotels, rental car agencies and travel service providers. The government alleges that PWC did not consistently disclose the existence of these travel rebates and did not reduce its travel reimbursement claims by the amounts of the rebates. The government’s complaint alleged that PWC knowingly presented claims for payment to the U.S. for amounts greater than the travel expenses actually incurred.

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Senator Acts to Delay BRAC

Sen. John Thune, R-S.D., introduced three Base Realignment And Closure (BRAC)-related amendments to the Defense Authorization bill. The amendments are (1) delay base closures until completion of a number of pending planning studies and conditions, including the Quadrennial Defense Review, and deployment home of substantially all troops from Iraq and Afghanistan (2) extend whistleblower protections to members of the armed services who might disagree with the Pentagon’s BRAC recommendations and desire to share that information with the BRAC Commission, and (3) a variant of the first amendment that would allow Congress the discretion to remove bases from the BRAC closure list once the same long-term planning studies and conditions were met.

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Study Shows Brain Cancer among Gulf War Vets

A research paper published in the August 2005 issue of the American Journal of Public Health finds that Gulf War veterans who may have been exposed to nerve agents during the March 1991 weapons demolitions in Khamisiyah, Iraq, appear to have a higher risk for brain cancer death than veterans who were not exposed. Researchers compared the causes of death in a group of 100,487 possibly exposed Army Gulf War veterans with those among 224,980 Army Gulf War veterans who were not exposed to nerve agents. Exposed veterans were about twice as likely to have died from brain cancer as unexposed veterans, corresponding to roughly 12 excess deaths due to brain cancer among the 100,487 exposed veterans over a nine-year period. The study's authors said additional research is needed to confirm their findings of a higher brain cancer death risk for some Gulf War veterans.

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GAO Reports Problems with DoD Business Modernization

The Department of Defense (DoD) is required to develop, by September 2005, a business enterprise architecture (BEA) and a transition plan. To modernize its business operations, the Government Accountability Office (GAO) said it is “essential” for DoD to develop and use a well-defined BEA. However, it does not have such an architecture—even after spending almost four years and about $318 million. In particular, DOD has not done the following:

  • achieved stakeholder buy-in;
  • identified measurable goals to be achieved; or
  • defined the workforce capabilities that it needs.

GAO said much remains to be accomplished to establish an effective architecture program. Until it does, DoD’s business systems modernization effort will remain a high-risk program.

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