Mabus Tightens Navy’s Counter-fraud Measures

By Jim Garamone
Monday, December 23, 2013
Ray Mabus

While the Navy already has one of the strongest counter-fraud efforts in the government, Navy Secretary Ray Mabus today announced new measures to assure contracting integrity and to prevent fraud.

Mabus, who briefed the Pentagon press corps this morning, spoke amid a criminal investigation focused on Glenn Defense Marine Asia.

The U.S. Department of Justice is prosecuting the case, which alleges the company overcharged the U.S. Navy for husbanding services throughout Asia. Husbanding is the services ships receive in port and covers everything from removing sewage to providing transportation to resupply.

Some Naval officers have been arrested for their involvement in the scheme and Mabus expects more announcements as a result of the case.

Mabus is proud of the work Navy personnel did in uncovering the plot.

“The Naval Criminal Investigative Service, NCIS, along with the Defense Criminal Investigative Service, and the Defense Contract Audit Agency did and is doing incredibly impressive work to ferret out the alleged fraud and corruption carried out by GDMA and, yes, allegations against naval personnel, as well,” Mabus said.

The investigation has been under way since May 2010.

“Information gathered during this investigation was eventually turned over to government prosecutors and led to the recent charges filed in federal court,” Mabus said. This included charges filed against an NCIS agent.

Throughout the investigation, Mabus repeatedly instructed NCIS agents to take the investigation wherever it led.

“This is a very serious case, and it is a serious issue,” he said.

The secretary has spoken with all three- and four-star admirals about the investigation and the changes he is making.

“The conduct and the behavior alleged to have occurred in connection with this case is absolutely incompatible with the standards we require from our Navy officers and civilians,” Mabus said. “If, as a result of this investigation, criminal prosecutors decide not to pursue criminal charges, but instead refer cases to the Navy for disposition, I’m announcing that those cases will be reviewed and resolved through a consolidated disposition authority.”

This authority will be a four-star admiral who will ensure that if allegations are substantiated, individuals will be held appropriately accountable, Mabus said.

Since 2009, Navy has suspended 252 contractors and debarred 400, the secretary said. Still, he said, the service must do more.

Mabus is taking steps following receipt of a report reviewing acquisition strategies for husbanding and similar contracts worldwide.

Experts are examining the husbanding contractor process from end-to-end and will recommend changes to correct deficiencies in those procedures and to provide maximum effective oversight of the process. When that task is finished, the Navy will issue a revised acquisition strategy that will be used on all husbanding contracts globally.

The Navy will “further standardize requirements, further standardize contract vehicles, further standardize administration and increase oversight of husbanding contracts and contractors,” Mabus said. The Navy will increase the use of firm fixed-price line items and minimize the use and improve the oversight of unpriced line items.

The service also “will remove pay functions to husbanding service providers from ships and provide better guidance on requirements and more contracting support ship COs going overseas,” he said.

The Navy will also incorporate standardized requisition processes fleetwide, and the service auditor general will conduct a special audit of husbanding and port services contracts. That report is due in June 2014.

defense.gov
 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

SAAM SMIT Towage Brazil Signs on with Helm

Helm Operations has signed on Brazilian harbor services company SAAM SMIT Towage to its Helm Marine Operations software to manage its billing and dispatch.    SAAM

Siemens Wins Vessel Electrical Installation Contract

Nautilus Minerals Inc. announces that the order for the supply of the entire electrical installation for the production support vessel has been awarded to Siemens International Trading (Shanghai) Ltd.

New Domestic Ferry for Faroe Islands Service

Third generation domestic ferry for service between Nólsoy and Tórshavn in the Faroe Islands.   According to the vessel's designer, this project is the second

Legal

Dispersants ... Will we ever be able to use them again?

On January 22, 2015, the Environmental Protection Agency (EPA) published a Proposed Rule on dispersants. The Proposed Rule drastically changes the EPA’s approach

ExxonMobil President Seeks Swift Action on US LNG Exports

The United States is at risk of losing economic opportunity and the ability to solidify its role as a global leader in energy production unless the government moves

Fishing Vessel Skipper Fined for Collision

The skipper of a fishing vessel that collided with a ferry was fined after pleading guilty for failing to keep a proper lookout. The skipper, Lindsay Haugh, of the fishing vessel Onward N336,

Navy

Delivery Begins for HMS Prince of Wales Bridge

The bridge section of the U.K.’s second Queen Elizabeth Class aircraft carrier has been loaded out of its dock hall in Glasgow ahead of its first sea voyage to Rosyth.

Hull Inspection Systems Delivered to the US Navy

Bluefin Robotics has delivered new vehicles to the U.S. Navy that aim to increase the Navy's capability to remotely search and investigate ship hulls, harbor sea

Shipwrecked Bodies Brought Ashore, EU Proposes Doubling Rescue Effort

The European Union proposed doubling the size of its Mediterranean search and rescue operations on Monday, as the first bodies were brought ashore of some 900 people

Maritime Security

Delivery Begins for HMS Prince of Wales Bridge

The bridge section of the U.K.’s second Queen Elizabeth Class aircraft carrier has been loaded out of its dock hall in Glasgow ahead of its first sea voyage to Rosyth.

Hull Inspection Systems Delivered to the US Navy

Bluefin Robotics has delivered new vehicles to the U.S. Navy that aim to increase the Navy's capability to remotely search and investigate ship hulls, harbor sea

Risk & Reputation in the age of Disruption

Risks faced by today’s global businesses represent a combination of traditional concerns and newer threats that reflect changing times. The 2015 Allianz Risk Barometer,

News

SAAM SMIT Towage Brazil Signs on with Helm

Helm Operations has signed on Brazilian harbor services company SAAM SMIT Towage to its Helm Marine Operations software to manage its billing and dispatch.    SAAM

Siemens Wins Vessel Electrical Installation Contract

Nautilus Minerals Inc. announces that the order for the supply of the entire electrical installation for the production support vessel has been awarded to Siemens International Trading (Shanghai) Ltd.

Delivery Begins for HMS Prince of Wales Bridge

The bridge section of the U.K.’s second Queen Elizabeth Class aircraft carrier has been loaded out of its dock hall in Glasgow ahead of its first sea voyage to Rosyth.

Eye on the Navy

Delivery Begins for HMS Prince of Wales Bridge

The bridge section of the U.K.’s second Queen Elizabeth Class aircraft carrier has been loaded out of its dock hall in Glasgow ahead of its first sea voyage to Rosyth.

Hull Inspection Systems Delivered to the US Navy

Bluefin Robotics has delivered new vehicles to the U.S. Navy that aim to increase the Navy's capability to remotely search and investigate ship hulls, harbor sea

Shipwrecked Bodies Brought Ashore, EU Proposes Doubling Rescue Effort

The European Union proposed doubling the size of its Mediterranean search and rescue operations on Monday, as the first bodies were brought ashore of some 900 people

People in the News

ExxonMobil President Seeks Swift Action on US LNG Exports

The United States is at risk of losing economic opportunity and the ability to solidify its role as a global leader in energy production unless the government moves

Gethings Joins Seaspan Marine as Business Development VP

Jenny Gethings has been named vice president of business development at Seaspan Marine, the company announced.   Gethings will lead Seaspan’s business development

ICS Chairman Warns of Regional Regulation Chaos

Addressing members of the Singapore Shipping Association, the Chairman of the International Chamber of Shipping, Masamichi Morooka, warned about the dangers of

Government Update

Underway on LNG

On 17 January 1955, Commander Eugene P. Wilkinson, USN, the first Commanding Officer of USS Nautilus (SSN 571) signaled the memorable and historic message “Underway on nuclear power.

ExxonMobil President Seeks Swift Action on US LNG Exports

The United States is at risk of losing economic opportunity and the ability to solidify its role as a global leader in energy production unless the government moves

ICS Chairman Warns of Regional Regulation Chaos

Addressing members of the Singapore Shipping Association, the Chairman of the International Chamber of Shipping, Masamichi Morooka, warned about the dangers of

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2534 sec (4 req/sec)