Georgia Tech Procurement Assistance Center

Court grapples with Albany Marine Corps Logistics Base contractor’s bribery conviction

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The owner of a trucking company who was convicted of paying bribes to rake in more than $20 million from military contracts fought for relief last Wednesday at the 11th Circuit.

Arguing before a three-judge panel in Atlanta, attorney Edward Garland said that the evidence showed only that his client, Christopher Whitman, gave gratuities to officials.   “The defense was presented for five weeks … evidence was used on the record for, what we’ll call, ‘buttering up,’” said Garland, a partner with Garland, Samuel and Loeb.

Justice Department attorney Alex Robbins told the panel meanwhile that the proper time to raise such arguments was at trial.  “Timing is everything,” Robbins said. “You need to submit your argument to the jury. … None of that happened here.”

Robbins added: “There is nothing in the record at all that suggested these payments were gratuities.”

Garland’s argument also drew skepticism from at least one judge on the panel.  “But you never argued this, did you?” said U.S. District Judge John Antoon II, sitting by designation from the Middle District of Florida.

Keep reading this article at: https://www.courthousenews.com/court-grapples-with-defense-contractors-bribery-conviction/

See our earlier reports on this case at: http://gtpac.org/?p=10102 and http://gtpac.org/?p=7589. 

Florida and Mississippi men sentenced for bribing public officials at Albany’s Marine Corps Logistics Base

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A former agent and a former driver for a large national trucking company have been sentenced to prison for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, in order to obtain lucrative freight-hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.

Albany Marine Corps Logistics BaseIvan Dwight Brannan, 61, of Jupiter, Florida, and David R. Nelson, 55, of Lucedale, Mississippi, were sentenced to 48 months and 24 months in prison, respectively, by U.S. District Judge W. Louis Sands of the Middle District of Georgia, who also ordered each man to serve three years of supervised release.  Brannan was additionally ordered to forfeit $120,000, and Nelson was ordered to pay a $10,000 fine.

In connection with their guilty pleas, Brannan, the former agent, and Nelson, the former driver, admitted that from 2006 to 2012, they provided cash and other items of value to Mitchell Potts, a former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, and Jeffrey Philpot, another official in the DLA traffic office, to ensure that their trucking company client was awarded millions of dollars in business at MCLB-Albany.

From 2006 to 2012, Brannan and Nelson paid at least $120,000 in bribes to Potts and Philpot.

Potts and Philpot both previously pleaded guilty to two counts of bribery of a public official for their roles in this scheme and another similar one.  Potts and Philpot were previously sentenced to 10 years and seven years in prison, respectively.

ACIS DCIS NCISThe U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service investigated the case.  Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia prosecuted the case.

Source: https://www.justice.gov/opa/pr/florida-and-mississippi-men-sentenced-bribing-public-officials-georgia-military-base

See earlier articles on this matter at:

Florida man pleads guilty to bribing public official at Albany Marine Corps base for 6 years

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Albany Marine Corps Logistics BaseA former agent for a large national trucking company has pleaded guilty for paying bribes to officials at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia.

The motive in this scheme, announced Feb. 3, 2016, was to obtain lucrative freight-hauling business, .

Ivan Dwight Brannan, 60, of Jupiter, Florida, pleaded guilty before U.S. District Judge W. Louis Sands of the Middle District of Georgia to one count of bribery of a public official.

During his plea, Brannan admitted that from 2006 to 2012, he provided cash and other items of value to Mitchell Potts, a former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, to ensure that his trucking company client was awarded millions of dollars of business at MCLB-Albany.  Brannan also admitted that he directed David Nelson, a truck driver, to provide cash and other things of value to both Potts and Jeffrey Philpot, another official in the DLA Traffic Office at MCLB-Albany.  From 2006 to 2012, Brannan and Nelson paid at least $120,000 in bribes to Potts and Philpot.

Potts and Philpot both previously pleaded guilty to one count of bribery of a public official and were sentenced to 10 years and seven years in prison, respectively, for their roles in the conspiracy.  Nelson pleaded guilty to one count of bribery of a public official on Oct. 7, 2014, and awaits sentencing.

The U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service and the Defense Criminal Investigative Service are investigating the case.  Trial Attorney John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia are prosecuting the case.

Source: http://www.justice.gov/opa/pr/florida-man-pleads-guilty-bribing-public-official-georgia-military-base

Contractors and former civilian employee sentenced in bribery scheme at Albany Marine Corps base

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A former civilian employee and a former contractor of the Marine Corps Logistics Base (MCLB) in Albany, Georgia, as well as one outside contractor were sentenced on Thursday, September 10, 2015 to prison terms for bribery and fraud arising from their handling of military trucking contracts and theft of surplus military equipment.

Justice Dept. sealAssistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.

Christopher Whitman, 48, of Sylvester, Georgia, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was sentenced to 22 years in prison for his conviction of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property.  Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was sentenced to 10 years in prison for his conviction of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice.  Bradford Newell, 43, of Sylvester, a former contractor at the MCLB-Albany, was sentenced to five years in prison for his conviction of 13 counts of honest services wire fraud, one count of bribery, and one count of theft of government property.  All three were found guilty by a jury in the Middle District of Georgia on March 3, 2015, following a five-week trial.

In addition to imposing the prison terms, the court ordered each defendant to forfeit assets reflecting losses to the government attributable to the bribery and fraud schemes.  Whitman was ordered to forfeit $18,860,313.75; McCarty was ordered to forfeit $15,410,151.55; and Newell was ordered to forfeit $513,600.  Whitman was specifically ordered to surrender assets derived from the schemes, including more than 100 parcels of real property, several boats and vehicles, and rental income estimated to be worth more than $14 million.

DLAAccording to the evidence presented at trial, between 2008 and 2012, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including McCarty, to obtain commercial trucking contracts from the base.  The evidence showed that contracts included unnecessary costly provisions, such as expedited service, expensive trailers and exclusive use (i.e., a requirement that freight be shipped separately from other equipment).  Evidence presented at trial and in a post-trial forfeiture hearing established that Whitman’s company grossed more than $37 million, and resulted in government losses and an improper benefit to Whitman of more than $20 million.

The evidence further demonstrated that Whitman paid nearly $200,000 in bribes to Newell and the former inventory control manager of the Distribution Management Center at MCLB-Albany, both of whom used their official positions to help Whitman steal from the base more than $1 million in surplus military equipment, including bulldozers, cranes and front-end loaders.  According to the trial evidence, in exchange for the bribe payments, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company.  The evidence showed that, after having the equipment refurbished, Whitman sold it to private purchasers.

Five other individuals have pleaded guilty to their roles in the corruption and fraud schemes.  In October 2013, Kelli Durham, the former manager of Whitman’s company, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services the company did not perform, resulting in losses ranging from $7 million to $20 million.  In May 2013, Mitchell Potts and Jeffrey Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes from Whitman.  In February 2013, Shelby Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes from Whitman.  These defendants have not yet been sentenced.  In February 2014, C.W. Smith, a Whitman associate who helped arrange the sale of the surplus military equipment Whitman stole from the base, pleaded guilty to theft of government property.

NCISThe case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County, Georgia, District Attorney’s Office; Defense Criminal Investigative Service; DLA Office of the Inspector General; and the Department of Labor Office of the Inspector General.  The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.  The forfeiture is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the U.S. Attorney’s Office of the Middle District of Georgia.

Source: http://www.justice.gov/opa/pr/two-contractors-and-one-former-civilian-employee-sentenced-bribery-scheme-georgia-military

GAO: Agency need not raise offeror’s high price in discussions

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When an agency decides to hold discussions with offerors, must it discuss with an offeror the price proposed for the contract? Not unless that offeror’s proposed price is so high as to be unreasonable.

GAO-GovernmentAccountabilityOffice-SealAs the GAO held in a recent bid protest decision, unless an offeror’s price is so high as to make its proposal unacceptable, the offeror is not entitled to be informed during discussions that its price is too high–even if the price is significantly higher than competitors.

The GAO helped shed light on this issue in Joint Logistics Managers, Inc., B-410465.2, B-410465.3 (May 5, 2015). There, the United States Marine Corps issued a task order RFP seeking “Care of Supplies in Storage” services in Albany Georgia, for one base year and one option year. The award was to be made on a best-value basis, considering technical approach, past performance, and price. Price was considered significantly less important than the combined non-price factors; but, price would become increasingly more important if proposals were considered technically equal or if an offeror’s price was so high as to diminish the value of any technical superiority.

Keep reading this article at: http://smallgovcon.com/gaobidprotests/when-too-high-isnt-high-enough/

GTPAC hosts government contracting ‘coffee break’ for Albany small business

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The Marine Corps Logistics Command Small Business Program Office, along with the City of Albany and Dougherty County, held a “Coffee Break” on January 28, 2014, for Albany-area small businesses interested in doing business with the government sector.  The Georgia Tech Procurement Assistance Center (GTPAC) hosted this second in a series of quarterly Coffee Breaks.

The event was designed to help small businesses network, in an informal setting, with small business specialists and acquisition professionals from local, state, and federal agencies.

Marine Corps Logistics Command speakers included John P. McHugh, Senior Contracts Attorney, Office of Counsel; Hattie Mosely, Director, Small Business Program Office; and Sabrina Caldwell, Head, Policy Branch, Contracts Department.

Representing local governments at the event were: Joshua Williams, Buyer, City of Albany Central Services Department; Lori Farkas, Assistant General Manager for Customer Relations and Marketing, Water Gas and Light Commission; and Mike Trotter, Materials Manager, Water Gas and Light Commission.

Topics included information on the small business programs utilized at Marine Corps Logistics Command (LOGCOM) and how LOGCOM purchases from small businesses.  Also discussed was the Contractor Performance Assessment Reporting System (CPARS) and Past Performance Information Retrieval System – Statistical Reporting (PPIRS-SR).  Upcoming bid opportunities in city/county government and the water-gas-light commission also were discussed.

Approximately 50  small and large contractors from the area attended the two-hour event.

Fifty Albany-area businesses participated in the Jan. 28th "coffee break" hosted by GTPAC.
Fifty Albany-area businesses participated in the Jan. 28th “coffee break” hosted by GTPAC.

If you would like more information on how to do business with LOGCOM, or services offered in Albany, Georgia by GTPAC, go to:  http://www.logcom.usmc.mil/sbpo/sba.gov  or contact GTPAC’s Bridgett Bennett at 229-430-4189.

Georgia men charged in contracting corruption schemes at Albany Marine Corps base

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Three Georgia men have been charged in a 51-count indictment for their alleged participation in fraud and corruption schemes at the Marine Corps Logistics Base (MCLB) in Albany, Ga., resulting in the loss of millions of dollars to the United States government.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia made the announcement after the indictment was unsealed in the Middle District of Georgia today.

Christopher Whitman, 48, co-owner of United Industrial of Georgia Inc. (also known as ULOC), an Albany-based trucking company and freight transportation broker , was indicted on 43 counts of money, property and honest services wire fraud, five counts of bribery and one count of theft of government property.  Shawn McCarty, 36, of Albany, a former employee at the MCLB-Albany, was charged with 30 counts of money, property and honest services wire fraud and one count of bribery; and Bradford Newell, 43, of Sylvester, Ga., also a former employee at the MCLB-Albany, was charged with 13 counts of money, property and honest services wire fraud, one count of bribery, and one count of theft of government property.

The three men were arrested earlier today and appeared before U.S. Magistrate Judge Thomas Q. Langstaff.   Judge Langstaff ordered the three men detained pending further hearings next week.

According to the indictment, Whitman paid nearly $1 million in bribes to Mitchell Potts, the former traffic office supervisor for the Defense Logistics Agency (DLA) at MCLB-Albany, Jeff Philpot, the former lead transportation assistant in the traffic office, and Shawn McCarty, another transportation assistant in the traffic office, to obtain commercial trucking business from the DLA.   The indictment alleges that Potts, Philpot and McCarty used their official positions to defraud the government and benefit ULOC by helping ULOC obtain transportation contracts loaded with unnecessary premium-priced requirements – including expedited service; removable gooseneck trailers, which do not require a loading dock and are therefore more expensive than standard trailers; and exclusive use, which requires that freight be shipped separately from other equipment – even if that results in a truck not being filled to capacity.  The indictment alleges that Whitman and ULOC brokered these shipments for service without the premium specifications and on fewer trucks than requisitioned by DLA, but they billed the government at rates approved by the corrupt officials.   These actions are alleged to have resulted in ULOC profits grossing more than $20 million over less than four years.

Whitman is accused of orchestrating a scheme to steal and sell surplus equipment from MCLB-Albany worth more than $1 million.   Whitman allegedly paid approximately $200,000 in total bribes to Shelby Janes, the former inventory control manager of the Distribution Management Center (DMC) at MCLB-Albany, and Newell, an assistant to Janes, who used their official positions to help Whitman steal surplus equipment from the base, including bulldozers, cranes and front-end loaders.   The indictment alleges that Whitman improved and painted the stolen equipment.

An indictment is merely a charge and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, the defendants face up to 20 years in prison for each wire fraud count and 15 years in prison for each bribery count.   The theft count carries a maximum prison term of 10 years.  Each charged count carries a maximum fine of $250,000 or twice the gross gain.

Prior to this indictment, one former ULOC employee and three DLA officials pleaded guilty in connection with the fraud and corruption schemes alleged in the indictment.   On Oct. 10, 2013, Kelli Durham, ULOC’s former manager, pleaded guilty to conspiracy to commit wire fraud, admitting to intentionally overbilling the United States for services ULOC did not perform, resulting in losses ranging from $7 million to $20 million, and for receiving $905,685 for her role.   She faces a maximum penalty of five years in prison.   In May 2013, Potts and Philpot pleaded guilty to bribery for collectively accepting more than $700,000 in bribes; and in February 2013, Janes pleaded guilty to bribery for receiving nearly $100,000 in bribes.   The three former officials each face up to 15 years in prison.

The case is being investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General.   The case is being prosecuted by Trial Attorneys Richard B. Evans and J.P. Cooney of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.

Source: http://www.justice.gov/opa/pr/2014/January/14-crm-066.html 

Marine Corps’ Albany base sponsors small business trade show Aug. 4 & 5

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If you’re interested in learning about what and how the Marine Corps Logistics Command buys, then you ought to consider being in Albany, GA on Aug. 4 and 5, 2011.

The Albany Marine Corps base is hosting a two-day trade show specifically focused on procurement and acquisition that support of Warfighter requirements.

The Command is looking for exhibitors and attendees specializing in:

  • Logistics
  • Industrial Electronics
  • Communications
  • Information Technology
  • Engineering
  • Parts Obsolescence
  • Repair/Maintenance
  • Storage
  • Warehousing (including Supplies)
  • Material Handling
  • Green Initiatives
  • Construction
  • Structure Ventilation/Controlled Environments for Workers

On Thursday, Aug. 4th, an anticipated 100 exhibitors — representing both small business and large business as well as local, state, and federal government agencies — are expected to be on hand at the Albany Civic Center.  Opening ceremonies will begin at 8:00 a.m.

Mid-day on Thursday, attendees will gather for lunch across the street from the Civic Center at the Albany Hilton Garden Inn to hear featured keynote speaker, Lieutenant General Frank A. Panter, Deputy Commandant, Installations and Logistics, Headquarters, U. S. Marine Corps.

Following lunch, activities will resume in the exhibit hall at the Civic Center from 1:30 until 4:00 p.m.

On Friday, Aug. 5th at the Albany Civic Center there will be eight (8) workshops running concurrently, each repeated on the hour at 8:00, 9:00, 10:00, and 11:00 a.m.   Workshop topics include: The Mission and Function of the Marine Corps Logistics Command Centers (including Distribution Management, Maintenance Center, and Supply Management); Expert Services for Entrepreneurs; Acquisition Courses for Contractors; the Federal Logistics Information System and the Internet Bid Board System; Construction Requirements of the Marine Corps Logistics Base; Small Business Program Updates; Getting on GSA Schedules; and Doing Business with the Marine Corps Systems Command (MARCORSYSCOM).

There is a registration fee of $100 to attend this two-day event. The registration fee includes access to all events both days, including one lunch ticket for Aug. 4th.

Companies wishing to exhibit at the event must make arrangements and pay a fee in advance.  The exhibition fee for large businesses is $550, and the exhibition fee for small businesses is $450.  Each of these exhibitor registration packages covers two attendees and two lunch tickets.  (Exhibitors must set-up at the Civic Center on Wed., Aug. 3rd, between 12:30 and 4:30 p.m.  Exhibit teardown takes place on Thurs., Aug. 4th between 4:00 and 5:00 p.m.)

Pre-registration is required to attend this event.  The deadline for registration is Thursday, June 16, 2011. Complete details may be found at: http://www.logcom.usmc.mil/sbpo/files/trade-show/2011/Key-Information.pdf.

Want to meet government buyers? Albany, GA is the place to be on Feb. 22nd!

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Ever heard of “speed dating” where couples are matched for short periods of time to see if the chemistry is right?

Well, through a unique event on February 22, the same principle is being applied – EXCEPT it involves matches between local businesses, government agencies, and prime contractors.

If you want the opportunity to meet with buyers from local, state and federal agencies, you can’t afford to miss this event!

On Tuesday, February 22nd, the Albany (GA) Civic Center is the place to put your best marketing techniques to work.  You’ll get a chance to meet with — and present your capabilities to — decision-makers and buyers from representatives of local, state, and federal government agencies, including the State of Georgia, the University System of Georgia, the Georgia Dept. of Corrections, the City of Albany, the Southwest Georgia Regional Airport, the Marine Corps Command, the IRS, the General Services Administration, and the federal departments of Commerce, Interior, and Juvenile Justice – among others scheduled to be in attendance.

Along with 15-minute one-on-one meetings with buyers and contracting officials, attendees will have a chance to attend briefings on each of these topics:

  • Business Communications, Elevator Pitches and Capability Statements
  • Reading and Responding to Bid Solicitations
  • The Do’s and Don’ts of Government Contracting
  • Government Market Research
  • SBA’s New Women Owned Small Business (WOSB) Certification Program

The featured luncheon speaker for this very special day is Ms. Pat Hanes, Regional Director of the Atlanta National Enterprise Center with the Minority Business Development Agency (MBDA) of the U.S. Department of Commerce.

Coffee and informal networking begins at 8:00 am.  The day’s program begins at 9:00 am and runs until 3:00 pm.

This event is completely free, so register now!  Simply click here to register and then hit the “Sign Up” button.

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