Sunlight Foundation

Obama, Energy Policy, & Favored Firms

President Barack Obama is going to speak today about energy policy. I'm not sure if this is going to come up:

When the White House announced the federal government would loan $465 million to Tesla, a California start-up company with plans to develop an all-electric sedan, President Obama called it an "historic opportunity to ensure that the next generation of fuel-efficient cars and trucks are made in America."

The loan also represented a lucrative opportunity for Steve Westly, a major investor in the car company who had raised more than $500,000 for the president's campaign.

In 2009, the U.S. Department of Energy lent more than half a billion dollars to companies backed by Westly's California venture capital firm. In 2010, the White House tapped Westly for a seat on a special energy advisory panel that gives him regular access to Energy Secretary Steven Chu. Westly boasts on his website that his firm is "uniquely positioned" to take advantage of the Obama administration's interest in green energy.

Congress has given the Energy Department authority to distribute billions of dollars in public funds to help stimulate the economy and seed a new generation of clean energy firms. A joint investigation by ABC News and the Center for Public Integrity that will air on World News with Diane Sawyer tonight has found that Westly is just one of several political allies of the president who have ties to companies receiving chunks of that money through loans, grants, or loan guarantees.

Hearing on Contractor Database Transparency

If you've ever tried to research federal contracts you'll find that the databases used to house those contracts online are not so great. Sen. Claire McCaskill held a hearing yesterday titled, "Improving Transparency and Accessibility of Federal Contracting Databases." Nancy Scola wrote up the hearing and it isn't pretty:

All told, there are a million lines of code involved. But there's really no all told here, because the databases don't talk to one another. For example, FPDS, the Federal Procurement Data System doesn't communicate with EPLS, which stands for Excluded Parties List. Which means that theUSASpending.gov website -- heralded as the American public's window into the inner-workings of government, but powered by FPDS -- doesn't even know that contractors contained within it have been banished from government service for defrauding the United States government or otherwise behaving badly. What's more, on some of these legacy systems, a search for Contractor X, Inc. won't return results for Contractor X Inc. The shorthand for that particular wrinkle came to be known, during the hearing, as "the comma problem."

In fact, GAO's William Woods explained to the senators, the poor state of those databases meant that when his agency was asked by Congress to detail how many contractors were billing the United States government for work in Afghanistan and Iraq, the government watchdog group was forced by technology to admit its ignorance. "We could not answer those questions," said Woods. How many KBRs are at work in American war zones, being paid with taxpayer dollars? How many Blackwaters? Dunno.

The biggest problem, however, didn't turn out to be the current state of disrepair, but rather the inability to figure out what to do with the whole disclosure regime. To the surprise of almost everyone in the committee room, the General Services Administration (GSA) has been working to create a more sensible contractor disclosure regime with a more accessible public face. It was difficult for federal Chief Information Officer Vivek Kundra to identify who exactly would be overseeing the -- yes -- contract to revamp the databases. Ultimately that responsibility came down to either the GSA, the Office of Management and Budget or the Office of Federal Procurement.

As Scola writes, "Senator Robert Bennett spoke for many of us today when he sat up on the dais in room 342 of the Dirksen Senate Office Building and rubbed his temples over, and over, and over, and over again."

Crowdsourcing a Legislative Oops

Rep. Alan Grayson is taking advantage of a legislative misfire by overzealous lawmakers. And he's asking anyone out there to help him.

Last week, the House approved a motion to recommit to a student loan bill that banned funding to the community organization ACORN after employees of the group were videotaped offering advice to two people posing as a pimp and a prostitute on how to file fraudulent tax forms. Unfortunately for those seeking to target ACORN, there is no way to single out one organization from receiving federal funds. Therefore the bill drafters banned any organization under investigation for or having been found guilty of committing contracting fraud from receiving federal funds. (The bill also bans federal funds for any organization that violates federal or state election, campaign finance or lobbying disclosure laws.) While this may have seemed like a smart idea, it winds up applying to a large number of defense contractors and others.

If this bill were actually to take effect, the United States of America would probably have a serious aging problem with our Air Force planes fleet. According to the Project on Government Oversight's Federal Contractor Misconduct Database, Lockheed Martin has eleven fraud instances and Northrup Grumman has nine. Northrup Grumman has settled one False Claims Act for more money, $325 million, than ACORN has received since 1994, $54 million.

Rep. Grayson has posted a request to help him identify contractor fraud to be placed in the legislative history of the bill when courts review the legislation, which, if this language remains intact, they will. Grayson posted a Google Spreadsheet for anyone to add instances of contractor fraud to. All you need is a reputable source.

Of course, the aforementioned Federal Contract Misconduct Database is a great place to start.

Lunchtime Link Round-Up

Some open government/transparency posts from around the web:

The Food and Drug Administration, in conjunction with their Transparency Task Force, launched a transparency blog to discuss ways to make their operations more open to the public.

The White House is asking for more help on the Open Government Directive. They are looking for people to tell them the "three most important pieces of information you think every agency should be required to disclose about its operations." Also, they are seeking input on how the private sector could help the government mash up data.

Utah launched a new state government web site that looks very cool. Let us know in the comments what you think about this as a state government portal.

And in today's least surprising news, contracting in Iraq is plagued by a lack of oversight and corruption.

Pittsburgh Gets Some Transparency

Pittsburgh, PA Comptroller Michael Lamb just announced plans to create a searchable database for campaign contributions to local candidates and city contracts. This comes after an in depth expose by the Pittsburgh Post Gazette regarding city contracts being given to businesses who give large campaign donations. "The Post-Gazette analyzed 3,300 campaign contributions since 2005 and data on more than 4,400 contracts, development deals and other actions by the city and its authorities since 2006.”

This article describes how several companies who gave the mayor a significant campaign donation got no bid contracts. Even though no formal “pay for play” charges are determined the perception of wrong doing is evident.

The creation of a searchable database that will make this information easily available and transparent is definitely one steop in the right direction. Also, this story demonstrates exactly how investigative journalism keeps lawmakers accountable and moves transparency measure forward.

Cunningham Figure's Revelations May Imperil Other Officials

The chief witness in the investigation into former Rep. Randy "Duke" Cunningham may have spilled the goods on more lawmakers than the now imprisoned San Diego Republican. According to Seth Hettena, the author of a book about Cunningham's crimes, Mitchell Wade's sentencing memo contains new revelations about his cooperation with federal authorities:

A 42-page sentencing memo filed by Wade’s attorneys says he aided the government in its investigation “of at least five other members of Congress” who were under investigation for “corruption similar to that of Mr. Cunningham.” These no doubt include Virgil Goode and Katherine “Pink Sugar” Harris. Wade wanted to open facilities in their districts and made $78,000 in “straw” contributions  to grease the wheels. Neither Harris nor Goode has been charged with wrongdoing.

Prosecutors drop tantalizing hints about an even bigger, ongoing investigation. Wade was debriefed in 2006 and provided “moderately useful” background information in another “large and important corruption investigation” that also has not yet resulted in any charges.

Who are the other 3 members of Congress? And what is this "even bigger, ongoing investigation"? Ken Silverstein has some speculation on who the 3 unmentioned members of Congress are.

Of particular interest is the way in which Wade revealed the information to law enforcement: he released a searchable, electronic database of 150,000 documents.

In Broad Daylight: Disclosure Is Next To Cleanliness

Wealth disparity in Congress as lawmakers disclosure their finances; KBR can't decide if it's "Support the Troops" or "All for the Ca$h;" McCain's soft-money cash cow is called what again; and William Jefferson starts to pay back a loan to businessman who is currently a government witness against him. If you work for the Army, don't do your job, it could get you fired. This is today's news:

Yesterday, lawmakers on Capitol Hill disclosed their personal finances to the public highlighting recent news stories and controversies. At least a dozen lawmakers report loans from Countrywide on their personal financial disclosure forms. Last year, nine lawmakers reported loans from the mortgage giant currently embroiled in a Justice Department probe and a congressional influence scandal. There is no implication of wrongdoing on their part. Tardiness consistently plagues the financial disclosure process. This year, sixty-six lawmakers in the House failed to disclose on time. Meanwhile, the economic downturn hit some lawmaker finances hard. Both Nancy Pelosi and Rahm Emanuel lost millions of dollars as the market dropped. Harry Reid and Mitch McConnell, however, both grew their personal fortunes. (Check out previous personal finance data at Fortune 535 or Open Secrets.)

An Army contracting officer reports that he was fired in 2004 for refusing to approve $1 billion in questionable charges from KBR, the defense contractor providing food and housing for Army troops in Iraq. The inspector general for Iraq reconstruction reported last year that KBR was using improper procedures and failed to keep appropriate records. When the officer told KBR that he would withhold payment the contractor replied that if they were not paid for the questionable charges they would "reduce payments to subcontractors, which in turn would cut back on services." It's nice to know that our contractors use our countries soldiers as a chit in a game to make more loot.

A non-profit headed by allies and former staffers of Sen. John McCain repeatedly accepted large soft money contributions from corporations with business before the Senate Commerce Committee, which McCain chaired at the time. The Reform Institute (that's the actual name) pushed issues like campaign finance reform and largely mirrored the efforts of McCain.

Rep. William Jefferson is finally paying back a loan to a businessman who is currently a government witness against the embattled New Orleans lawmaker. No word on the temperature of the money used to pay back the loan.

USASpending.gov 2.0

In October 2006, Sunlight grantee OMB Watch set up FedSpending.org, a free, searchable database of federal government spending. Subsequent updates have allowed public access to approximately $16.8 trillion in federal government spending, with complete annual data from FY 2000 through FY 2006 and partial data available for FY 2007. The site was so successful that the Federal Funding Accountability and Transparency Act of 2006 (FFATA) set up USASpending.gov within the Office of Management and Budget, which Congresspedia dubbed "the ‘Google' of federal spending" by bringing tremendous transparency to how and where government spends tax dollars. As the site says, it's searchable and accessible by the public for free, and includes for each federal award:

1. The name of the entity receiving the award;
2. The amount of the award;
3. Information on the award including transaction type, funding agency, etc;
4. The location of the entity receiving the award; and
5. A unique identifier of the entity receiving the award.

U.S. Sens. Tom Coburn and Barack Obama, the original sponsors of the FFATA in 2006, recognize there is more to be done. Moments ago, Coburn and Obama introduced the Strengthening Transparency and Accountability in Federal Spending Act of 2008 (S. 3077), which would require the federal government to go beyond summary data on contracts it currently posts.

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