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Policies and Regulations - Information Letter 049-02-3
049-02-3 Existing Contracts with Arthur Andersen, LLP, and
the Enron Corporation
Department of Veterans Affairs
Deputy Assistant Secretary for Acquisition and Materiel Management
Washington DC 20420
IL 049-02-3
February 6, 2002
Office of Acquisition and Materiel Management Information Letter
| TO: |
Under Secretaries for Health, Benefits, and Memorial Affairs; Chief Facilities Management Officer, Office of Facilities Management; Veterans Integrated Service Network Directors; Directors, VA Medical Center Activities, Domiciliary, Outpatient Clinics, Medical and Regional Office Centers, and Regional Offices; Directors, Denver Acquisition and Logistics Center, Austin Automation Center, Records Management Center, VBA Benefits Delivery Centers, and the VA Health Administration Center; and the Executive Director and Chief Operating Officer, VA National Acquisition Center |
| ATTN: |
Head of the Contracting Activity
All VA Contracting Officers |
| SUBJECT: |
Existing Contracts with Arthur Andersen, LLP, and the Enron Corporation |
- Office of Management and Budget Director Mitchell E. Daniels, Jr., by letter
dated January 25, 2002 (Enclosure), directed VA and other applicable Federal
agencies to ensure that existing contracts with Arthur Andersen, LLP, and
the Enron Corporation are being performed in accordance with contract terms
and proper business practices. Concerns
regarding existing VA contracts with either of these firms should be directed
to Scott Curit, Chief, Acquisition Program Management Division (049A5B),
at (202) 273-8825.
- Please direct any questions regarding this information letter to Derek
Underwood, Acquisition Policy Division (049A5A), at (202) 273-5044.
/s/David S. Derr
Associate Deputy Assistant Secretary
for Acquisitions
Distribution: RPC 7029
Enclosure
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
Washington DC 20503
January 25, 2002
The Honorable Stephen Perry
Administrator
General Services Administration
Washington, DC 20405
Dear Mr. Perry:
Recent press reports have highlighted potential irregularities in work done by the accounting firm of Arthur Andersen, LLP, and the Enron Corporation ("Enron"). Some of these allegations are serious in nature and include charges of document shredding, manipulative accounting practices, and other activities that could reflect poorly on these corporate entities and their ability to provide quality work. Information obtained from the Federal Procurement Data System (FPDS) indicates that numerous federal agencies have contracts with Arthur Andersen and Enron. The FPDS data also reveals that, through the third quarter of fiscal year 2001, the General Services Administration had significant contract activity with Arthur Andersen and Enron.
As you know, Federal Acquisition Regulation (FAR) provisions require that firms seeking to do business with the government have a satisfactory record of business ethics and integrity. Accordingly, we request that the General Services Administration, on behalf of all federal agencies doing business with Arthur Andersen and Enron, determine whether their business practices are sufficient to meet the FAR responsibility requirements for the award of future government contracts. Consideration should be given to the initiation of suspension or debarment proceedings for all, or a part, of Arthur Andersen and Enron as appropriate.
Enclosed is a summary of contracts awarded to Arthur Andersen and Enron by federal agencies through the third quarter FY 2001. A copy of this letter is being provided to agencies with Arthur Andersen and Enron contracts. These agencies should ensure that existing contracts with Arthur Andersen and Enron are being performed in accordance with contract terms and proper business practices.
Your attention to this matter is appreciated.
Sincerely,
/s/Mitchell E. Daniels, Jr.
Director
Enclosure
cc: The Honorable Tommy Thompson
Secretary of Health and Human Services
The Honorable Melvin Martinez
Secretary of Housing and Urban Development
The Honorable Donald H. Rumsfeld
Secretary of Defense
The Honorable Paul H. O'Neill
Secretary of the Treasury
The Honorable Anthony J. Pnincipi
Secretary of Veterans' Affairs
The Honorable John Ashcroft
Attorney General
The Honorable Richard A. Meserve
Chairman
Nuclear Regulatory Commission
The Honorable Norman Y. Mineta
Secretary of Transportation
The Honorable John W. Carlin
Archivist
National Archives and Records Administration
ARTHUR ANDERSEN, LLP
CONTRACTS WITH THE, FEDERAL GOVERNMENT
FISCAL YEAR 2001 (Up to and including Qtr Ending June 30, 2001)
(Source: Federal Procurement Data System)
| AGENCY |
NUMBER OF
CONTRACT ACTION(S) |
DOLLARS
(000) |
EXAMPLES OF SERVICES PROVIDED |
| Department of Defense |
16 |
11,361 |
Program Management/Support Services, Miscellaneous Items, Other Environmental Services/Studies/Support, ADP Acquisition Support Services, ADP Supplies, Other Management Services, Defense Studies, Study/Organization/Admin/Personnel, Other ADP & Telecommunication Services |
| Department of Health and Human Services |
1 |
1,479 |
Other Management Support Services |
| Department of Housing and Urban Development |
23 |
7,217 |
Other Management Support Services, Other Professional Services, Program Management/Support Services, Technical Assistance |
| Department of Justice |
12 |
2,597 |
Program Management/Support Services, Expert Witnesses |
| General Services Administration |
7 |
1,332 |
ADP Systems Development Services, Legal Services, Other Management Support Services, ADP Systems Analysis Services |
| Nuclear Regulatory Commission |
5 |
691 |
Miscellaneous Items, Technical Assistance, Other Professional Services |
| TOTAL |
64 |
24,677 |
|
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ENRON CORPORATION
CONTRACTS WITH THE, FEDERAL GOVERNMENT
FISCAL YEAR 2001 (Up to and including Qtr Ending June 30, 2001)
(Source: Federal Procurement Data System)
| AGENCY |
NUMBER OF
CONTRACT ACTION(S) |
DOLLARS
(000) |
EXAMPLES OF SERVICES PROVIDED |
| Department of Defense |
5 |
5,663 |
Chemicals, Gases: Compressed and Liquid |
| Department of Justice |
11 |
479 |
Gas Services and Electric Services |
| Department of Transportation |
2 |
127 |
A/E-Inspection-Non Construction |
| Department of the Treasury |
3 |
977 |
Construction (Basic) and Electric Services |
| Department of Veterans Affairs |
7 |
2,102 |
Electric Services |
| General Services Administration |
13 |
24,893 |
Electric Services, Main-Rep-Alt/Office Buildings |
| National Archives and Records Administration |
1 |
582 |
Electric Services |
| TOTAL |
42 |
34,823 |
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