Vendaval
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Joined: 1/15/2005 Status: offline
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Excerpt from article link submitted by KenDckey - http://news.yahoo.com/s/ap/20070318/ap_on_bi_ge/walter_reed_iap_contract_2 "The trail goes back to the end of the Clinton administration. The Army began studying the cost benefits of privatization in 2000. When President Bush took office, he mandated the competitive outsourcing of 425,000 federal jobs. At the time, the Pentagon was aggressively pushing for increased outsourcing, and in June 2003, then-Defense Secretary Donald Rumsfeld told a Senate committee he was considering outsourcing up to 320,000 nonmilitary support jobs. That's the same year that the Army asked for bids on Walter Reed and, coincidentally, the same year the United States invaded Iraq. One company responded: Johnson Controls World Services Inc., which would be acquired by IAP in March 2005. It initially bid $132 million, but it and Walter Reed's then-management agreed that the Army was underestimating the cost. By September 2004, the Army had decided it would be cheaper to continue with current management, which said it could do the work for $124.5 million. Johnson Controls filed a protest with the Government Accountability Office. The protest was dismissed in June 2005, but the Army agreed to reopen bidding three months later to include additional costs for services. In January 2006, after two rounds of protests by IAP and two appeals by Walter Reed employees to the U.S. Army Medical Command, IAP was named the winner, according to Steve Sanderson, a Walter Reed spokesman. Instead, in an unusual turn of events, the contract wasn't awarded for another 11 months, the GAO said. Walter Reed officials blame several factors, including an additional protest to the GAO filed by Deputy Garrison Commander Alan D. King, a separate appeal to the U.S. Army Medical Command by Walter Reed's public works director, at least one intervention by Congress, and delays on required congressional notifications about government employee dismissals. IAP spokeswoman Arlene Mellinger said "it was up to the Army to decide when to begin that contract." The company was ready to start at any time, she added. In August 2006, led by Sen. Barbara Mikulski (news, bio, voting record), D-Md., lawmakers asked then-Army Secretary Francis J. Harvey to hold off on the contract until Congress finished work on the fiscal 2007 defense appropriations bill. Congress approved that bill Sept. 29. The Army's plan then was to eliminate 360 federal jobs at Walter Reed in November and turn the work over to IAP, according to the American Federation of Government Employees, a federal workers' trade union. But the Army failed to notify Congress 45 days in advance, as required by law, so the turnover was delayed until early this year. Then it was IAP's turn to have problems. When work finally began at the hospital, IAP made an immediate request, which the Army approved, to hire 87 temporary skilled workers for up to four months "to ease the turbulence caused by employees being placed into positions or other installations and otherwise finding new jobs early," said Sanderson, the Walter Reed official. However, a "tight" job market in the Washington area meant that only 10 qualified temporary employees were found, he added. Meanwhile, injured soldiers continue to arrive weekly to a short-handed, deteriorated hospital, which the Army still plans to close in 2011. "
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