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"FAA reviews questionable contracts"



Sunday, August 14, 2005

FAA reviews questionable contracts 
United Press International


WASHINGTON, (UPI) -- The Federal Aviation Administration has begun a review
of contracts with hundreds of companies after a $16 million contract was
called into question.

The review was initiated after an employee of Crown Consulting Inc., called
an FAA official asking for more money, The Washington Post reports.

The Washington firm denies any wrongdoing. Crown has 58 different contracts
with the FAA totaling $135 million.

An Aug. 11 memo from Federal Aviation Administrator Marion C. Blakely to
managers announced the review as part of change in how the FAA spends money.

Support services contracts like Crown's are supposed to save the government
money.

However, the contracts are usually open-ended in terms of job, performance
standards and dollar amount, leading to an ever evolving final contract
number.

The final contract pay out is generally based solely on number of hours of
service the contractor has put in.


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