Norton Releases Report on Security Guards Payments to Correct Security Risks (8/29/07)

Norton Releases Report on Security Guards Payments to Correct Security Risks
August 29, 2007

Congresswoman Eleanor Holmes Norton, Chair of the Subcommittee on Economic Development, Public Buildings, and Emergency Management, today released a report she required from the Department of Homeland Security Immigration and Customs Enforcement (ICE) to assure that the agency had taken specific steps to correct major problems that subcommittee hearings uncovered in vendor payments for contract guard services for security at federal buildings here. The Congresswoman required ICE, which has jurisdiction over FPS, to assure her in writing that it had processed outstanding payments to guard contractors and $2,654,039 in undisputed claims that have been paid. "This large amount in over due undisputed claims that were from FPS endangered security at federal sites because it carried the risk that guards would fail to show up for work," Norton said. "The guards continued to work showing greater professionalism than FPS showed in paying them." She said that the subcommittee will continue to monitor payments, particularly the $885,289.18 that is in negotiation because of disputes on the amount owed.

Norton took action on the payments "to eliminate security risks to federal employees where they work" and to restore public confidence in FPS contracting operations after she held hearings and meetings with FPS to investigate glaring problems that appeared to be endemic of FPS contracting nationwide. On two recent but separate occasions in this region alone, security guard payrolls were at risk or unmet. In the case of an FPS contract with STARTECH International Security, the owner, who was subsequently dismissed as a vendor, after Norton's hearings had served five years in prison for money laundering and fraud. STARTECH had received payments from FPS but had failed to pay security personnel for five weeks. Jenkins Security, a D.C.-based firm owned by a District resident, was forced to borrow money to meet payroll when FPS failed to forward the contracted funds all together. The STARTECH incident sparked Norton to write and get passed out of subcommittee the Federal Protective Service Guard Contracting Reform Act of 2007, which prohibits an award of a contract to any business concern owned, controlled, or operated by an individual convicted of a felony. The bill is expected to be approved by the full Transportation and Infrastructure Committee and the House when Congress returns next month.

Among other reforms at ICE following Norton's hearings were appointment of an ombudsman to be directly accessible to contractors nationwide whenever problems surface, more training of ICE contracting officers, and additional guidance to contract vendors on new invoice requirements and procedures.

The full ICE report is available via fax upon request.