fbi’s-carahsoft-raid-comes-amid-allegations-of-price-fixing

FBI’s Carahsoft raid comes amid allegations of price-fixing

The FBI and Defense Criminal Investigative Service launched a joint raid Tuesday morning at Carahsoft’s Reston, Va., headquarters. Law enforcement officials confirmed the raid but have yet to share details on what prompted the seizure of company records.

“We can confirm that DCIS executed a joint search warrant operation with the FBI in northern Virginia yesterday morning. We have nothing further to add, as this is an open investigation,” a spokesperson for the Defense Department’s audit office said in a statement. 

Richard Conway, an attorney for Carahsoft, did not return a request for comment. A company spokesperson also did not comment on the new details of the raid.

News of the raid prompted speculation about possible — but thus far unsubstantiated — links to an ongoing court case that was filed in the U.S. District Court for the District of Maryland last year and involved efforts to defraud government agencies. The names of the vendors allegedly involved in the scheme were redacted. A report in Bloomberg, citing an unredacted filing, named SAP and noted that prosecutors were also examining other resellers and a unit of Accenture. 

Both companies issued statements to Nextgov/FCW indicating they were cooperating with the Justice Department in a civil investigation. 

Carahsoft employees were told Tuesday the raid was “part of an investigation into a company with which Carahsoft has done business in the past” and that the company is fully cooperating and “operating business as usual,” according to an email sent by Carahsoft President Craig Abod and obtained by Nextgov/FCW.

Carahsoft is a leading IT vendor and reseller of technology products and services to public sector organizations, with prime spots on key federal governmentwide acquisition contracts such as NASA’s Solutions for Enterprise-Wide Procurement and the General Services Administration’s Multiple Award Schedule.

The raid occurred during the busiest time of the year for federal contractors. The U.S. government’s fiscal year ends Sept. 30, where agencies have to finalize budgets, allocate remaining funds and push through last-minute contracts before the deadline.

A Carahsoft employee, speaking on the condition of anonymity for fear of retaliation, said that account representatives handling client relationships were directed by team leads to calm down vendors and assure them that there was nothing to fear.

The ongoing civil case 

Documents filed in the U.S. District Court for the District of Maryland last year indicate that the U.S. is looking into “whether Carahsoft conspired with other companies to rig bids, inflate prices, overcharge, and defraud the Department of Defense (DoD), among other federal government agencies” when it resold the products. The specific companies in question were redacted in the documents that Nextgov/FCW had retrieved.

For a year, Carahsoft “had not produced the full set of transaction records (including but not limited to the communications, solicitations, proposals, quotes, bids, award notices, orders, purchase orders, and invoices) for even a single project” for the Justice Department and others involved.

For months, frustration had mounted among DOJ lawyers, who claimed in court proceedings that the government’s document requests and inquiries appeared to be delayed or unfulfilled by Carahsoft.

“We have offered to rewrite the question, but the response we’ve gotten from Carahsoft is saying that they don’t want to answer the question,” Justice Department trial attorney Samson Asiyanbi said. “And it seems to us that they just don’t want to answer it. And rather — because they don’t want to answer it, they are coming up with all sorts of reasons why they shouldn’t be required to do so.”

Carahsoft paid a $75 million fine to the government in 2015 to settle claims that the company and partner firm VMWare overcharged the government and concealed commercial pricing arrangements. Carahsoft did not admit wrongdoing in the settlement.

GovExec’s Frank Konkel and Washington Technology’s Nick Wakeman and Ross Wilkers contributed to this report.

Editor’s note: Carahsoft is an advertising client of GovExec360.

senate-bill-seeks-to-prevent-ai-bias,-discrimination

Senate Bill Seeks to Prevent AI Bias, Discrimination

Sen. Edward Markey, D-Mass., has introduced a bill that would establish guardrails on companies’ use of artificial intelligence tools and related algorithms in decisions impacting people’s civil rights, liberties and livelihoods and prevent and eliminate AI bias and discrimination.

The senator’s office said Tuesday the proposed AI Civil Rights Act would prohibit AI developers and deployers from using, licensing or offering covered algorithms that discriminate based on protected characteristics.

The legislation would direct developers and deployers of such algorithms to complete independently audited pre- and post-deployment impact assessments to mitigate any potential bias and promote transparency regarding the use of covered algorithms in consequential decisions.

I am introducing the Artificial Intelligence Civil Rights Act to ensure that the AI Age does not replicate and supercharge the bias and discrimination already prevalent in society today,” Markey said.

“Make no mistake: we can have an AI revolution in this country while also protecting the civil rights and liberties of everyday Americans, we can support innovation without supercharging bias and discrimination, and we can promote competition while safeguarding people’s rights,” added the member of the Senate Commerce, Science and Transportation Committee.

Sen. Mazie Hirono, D-Hawaii, is a co-sponsor of the measure, which would authorize the Federal Trade Commission, state attorneys general and private individuals to implement the bill’s provisions.

labor-dept-develops-framework-for-integrating-ai-into-hiring-tech

Labor Dept Develops Framework for Integrating AI Into Hiring Tech

The Department of Labor has unveiled a new framework designed to guide employers in integrating artificial intelligence into hiring technologies to reduce employment discrimination and barriers faced by disabled job seekers.

The AI & Inclusive Hiring Framework, developed by the Office of Disability Employment Policy and the Partnership on Employment & Accessible Technology, is based on the National Institute of Standards and Technology’s AI Risk Management Framework and includes NIST’s best practices for inclusive hiring, the Labor Department said Tuesday.

The document, formed with input from disability advocates, AI experts, government and industry leaders, and the public, offers information on managing AI risks and recommends practices, goals and sample activities that can be worked into the employers’ AI governance and disability-inclusive hiring initiatives. 

According to Taryn Williams, assistant secretary for disability employment policy, the framework was published with the knowledge of how AI can improve the recruitment process but impact workplace culture and inclusion of disabled employees. 

The publication aligns with the White House’s Blueprint for an AI Bill of Rights, which promotes more equitable and inclusive digital hiring practices.

spacecom-commercial-operations-cell-tasked-to-handle-tac-srt-missions

SPACECOM Commercial Operations Cell Tasked to Handle Tac-SRT Missions

According to Barbara Golf, strategic adviser for space domain awareness at the Space Systems Command, the Joint Commercial Operations cell, which she also leads, will take on tactical surveillance, reconnaissance and tracking, or Tac-SRT, missions beginning Oct. 1, Breaking Defense reported Tuesday.

Tac-SRT data will be collected by the JCO from commercial remote sensing satellite operators, Golf said at the recent Advanced Maui Optical and Space Surveillance Technologies conference.

The head of the JCO explained that the Tac-SRT work will be carried out in coordination with the intelligence community, especially the National Geospatial-Intelligence Agency, to avoid duplication of effort. The NGA collects remote sensing imagery from the National Reconnaissance Office as well as imagery analysis from commercial providers.

“We are actually collaborating with the IC. We don’t double buy. We check NGA imagery libraries first to make sure we don’t already have information. We take everything we purchase and put it back in those libraries,” Golf said.

A part of the U.S. Space Command, the JCO cell was previously called Joint Task Force-Space Defense Commercial Operations until it was renamed in December 2023. Its purpose is to provide space domain awareness. It works with NATO and 14 other countries.

johns-hopkins-apl-testing-new-software-platform-for-navy-usv-operating-systems

Johns Hopkins APL Testing New Software Platform for Navy USV Operating Systems

Researchers at the Johns Hopkins Applied Physics Laboratory are collaborating with the U.S. Navy to validate Autonomy Baseline Library, a new software developed for rapid analysis of uncrewed surface vehicles’ systems and capabilities suited for specific naval needs. 

The software tests, which were initially undertaken in the Navy’s Technology Readiness Experimentation, or T-REX, held in March, will culminate at the Autonomous Warrior joint force exercise scheduled in October in Australia, APL said Tuesday.

APL, the Naval Surface Warfare Center Combatant Craft Division, Naval Information Warfare Center Pacific and industry partners developed the ABL software under the ORCAstrate program of the Office of the Under Secretary of Defense for Research and Engineering. 

The software is compliant with the interface standards of the Navy’s Unmanned Maritime Autonomy Architecture for software modularized into reusable parts for rapid software insertion and reuse in programs across various USVs. 

“This type of open architecture allows for rapid scaling of these platforms, as well as faster capability upgrades as the technology advances,” said Toni Salter, APL’s program manager for emerging concepts. 

Navy operators used the ABL to command three global autonomous reconnaissance craft USV platforms and one common USV at the March T-REX event, which was part of the U.S. Pacific Fleet-led Integrated Battle Problem 24.1 held in San Diego.

Besides the ABL’s tests in T-REX at the Autonomous Warrior exercise in Australia, the Department of Defense will also bring its Rapid Defense Experimentation Reserve program to accelerate military technology development, Heidi Shyu, Pentagon’s chief technology officer and a 2024 Wash100 awardee, told DefenseScoop on the sidelines of the Potomac Officers Club’s annual Defense R&D Summit held in January.

state-department-working-to-remake-acquisition-process

State Department Working to Remake Acquisition Process

The State Department is advancing category management and streamlining procurement workflows as part of efforts to transform its acquisition process, Federal News Network reported Tuesday.

For the most part, most agencies are trying to buy smarter these days and use best in class vehicles that are established out there. We’re certainly doing that,” said Michael Derrios, senior procurement executive at the State Department.

But the missing ingredient for us really, and for any agency, is aggregating the demand signal. So how can you look internally at the requirements and identify those opportunities before you go to the best in class vehicles? That’s really where we get the best bang for the buck, so to speak,” he added.

According to FNN, the State Department wants its teams of procurement specialists focused on information technology and other specific procurement areas to have a deeper understanding of their respective markets and is using data analytics to manifest a view of the upcoming year’s portfolio.

Derrios, who also serves as deputy assistant secretary for acquisition, cited the need for an end-to-end platform in support of the department’s contracting officers and customers.

“I would like for us to have an end to end system where, frankly, it would be fantastic if we had a system that allowed our customers to be able to work workflow documents into a shared workspace where our [contracting officers (COs)] and our customers could actually work on documents together,” he said. “I’ll go so far as to say a secure system where industry could submit their proposals in to us. I say that with emphasis on ‘secure’ system. I would love that.”

afrl-is-exploring-ways-to-reach-more-small-businesses

AFRL Is Exploring Ways to Reach More Small Businesses

Brian McJilton, director of the Air Force Research Laboratory’s Small Business Office, said there has been a 33 percent drop in the number of small companies partnering with the Department of Defense in the past five to seven years and that his office is working to address that trend by educating such enterprises on how to collaborate with DOD, AFRL reported Monday.

“While this hasn’t impacted us significantly yet, it could in the future,” McJilton said at a recent summit held in Dayton, Ohio.

“We need to be proactive and seek innovative ways to attract and support new small businesses to ensure the supply-chain of small businesses stays strong for the future,” he added.

During the event, the AFRL official cited the importance of feedback from small businesses and the potential role of artificial intelligence tools in improving efficiency.

McJilton noted that his office is exploring ways to bolster engagement with small businesses and streamline processes and seeks to “set actionable priorities for the coming year.”

“Our goal is to invest resources effectively and connect with businesses that align with our needs,” he said. “We offer a range of tools and programs to help small businesses understand and access opportunities within AFRL.”

The AFRL office has reportedly reached over 2,000 small businesses through platforms and events since 2023 and is on track to exceed its 2023 small business performance metrics.

“We are currently ahead of last year’s small business numbers. If this trend continues, we will likely exceed last year’s figures. It’s about how much money we’re awarding to small businesses. Financially, I believe we will surpass last year’s figures easily,” McJilton stated.

cdc-issues-rfi-on-niosh-it-support-services

CDC Issues RFI on NIOSH IT Support Services

The Centers for Disease Control and Prevention has issued a request for information to determine interested companies capable of providing information technology support services.

According to the RFI posted on SAM.gov on Sept. 16, the CDC is seeking input from businesses with the capabilities to provide IT services for the Office of the Director for Information Technology at the National Institute for Occupational Safety and Health.

The results of the notice will help determine whether to award the single firm fixed price contract to small businesses or other organizations under socioeconomic categories. The contract, which will have a base year and four one-year option periods, may also be procured through full or open competition.

Interested parties may submit their responses by Oct. 9 at 4 p.m. EDT.

Register here to attend the Potomac Officers Club‘s 2024 Healthcare Summit and join the discussions about the trends, innovations and issues shaping the future of the healthcare sector.

polar-semiconductor-secures-$123m-from-commerce-to-expand-facility

Polar Semiconductor Secures $123M From Commerce to Expand Facility

Polar Semiconductor, a manufacturer of analog and power semiconductor devices and sensors, has booked a $123 million contract from the U.S. Department of Commerce to expand and modernize its manufacturing facility.

The Commerce Department said Tuesday the award, the first under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities, is intended to double the production of sensors and power chips at Polar’s Bloomington, Minnesota facility within two years.

The award is part of a $525 million investment from private, state and federal sources to turn Polar from mostly foreign-owned to majority U.S.-owned. It is also expected to generate over 160 new jobs in Minnesota. 

The funds will be allocated when the company completes specific project milestones. 

President Joe Biden emphasized that the CHIPS and Science Act, part of the administration’s Investing in America agenda, will revitalize American leadership in semiconductors and strengthen supply chains and national security.

“Polar’s new facility will also be completed under a Project Labor Agreement to support its construction workforce, creating good-quality union jobs in Bloomington, Minnesota,” Biden said.

Secretary of Commerce Gina Raimondo remarked, “The Biden-Harris Administration’s investment in Polar will create a new U.S.-owned foundry for sensor and power semiconductors and modernize and expand Polar’s facilities in Minnesota, strengthening our national and economic security, bolstering our supply chains, and creating quality jobs.”

Surya Iyer, president and chief operating officer of Polar Semiconductor, commented, “Through our collaborative and sustained workforce development efforts, we expect to support customers with highly skilled employees today and into the future.”

dod-to-build-concrete-shield-structure-for-nuclear-reactor-at-inl

DOD to Build Concrete Shield Structure for Nuclear Reactor at INL

The Department of Defense has started the groundwork to construct a concrete shield structure for the Project Pele transportable nuclear reactor at Idaho National Laboratory.

Beginning In 2025, workers will build the concrete shield structure at INL to house the prototype reactor, the DOD said Tuesday.

BWXT Advanced Technologies is manufacturing the reactor for the Strategic Capabilities Office and will start the project’s assembly stage by February next year.

The company received a potential $300 million contract from the SCO in 2022 to deliver the requirement, which would become the first Generation IV nuclear reactor to generate electricity in the United States.

Using four shipping containers, BWXT will transport the fully assembled reactor on a truck in 2026. Upon its arrival at the INL test site, it will be placed inside the concrete shield structure. The mobile reactor will undergo a safety review; then, the Project Pele team will conduct testing and assessment activities.

If the equipment performs to expectations, it could meet the demand for resilient and carbon-free energy to support mission-critical military operations in remote and austere environments, the DOD said.

According to SCO Director Jay Dryer, Project Pele is envisioned to enhance DOD energy resilience and advance nuclear power technology for civilian uses.

The SCO project is being implemented with support from the Department of Energy, the National Nuclear Security Administration and the Nuclear Regulatory Commission.

Meanwhile, BWXT is working closely with Northrop Grumman, Rolls Royce Liberty Works and Torch Technologies to ensure the microreactor’s successful delivery.