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MGD
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join:2002-07-31
Fort Lauderdale, FL


2 edits
reply to fatness
Re: FBI raids office of D.C. CTO, Obama appointee

said by fatness See Profile :

said by MGD See Profile :

This appears to be essentially a greed driven operation.
That's the sense I get of the operation so far.
..
.
Yes, and though there are still some rumblings about the fairness of the DC outsourcing contract system, there appears to have been several procedural improvement changes made. I presume they were made during Vivek kundra's watch. There are however some other tangent issues that came to light while perusing documents related to this ongoing issue, more on that later.

Clearly Acar was a bad apple, one of the procedures in place to prevent conflicts of interest was a Confidential Statement of Employment and Financial Interests, which Yusuf Acar knowingly violated, right from the start. According to the affidavit:

quote:
.... On May 14, 2008, ACAR signed and filed a Confidential Statement of Employment and Financial Interests, on which he indicated that neither he nor any members of his immediate household had any connections or financial interests to any business enterprises. In addition, he indicated that he was not affiliated with any business entities that do business with the DC government. ACAR is associated with a company called CIRCLE NETWORKS, INC. (Circle), as set forth below. While Circle’s last purchase order with OCTO was dated May 30, 2008, ACAR remains associated with Circle and he apparently is in control of a Circle bank account, as set forth below, that receives deposits from AITC, owned by co-conspirator SUSHIL BANSAL.

Washington Post Staff Writer David Nakamura wrote an excellent article today, a sort of "state of the union" of the OCTO procurement system, from which I will quote some excerpts, titled:
D.C. Technology Office Scandal Revives Questions of Cronyism

I noted in an earlier post that there was a refreshing level of transparency with respect to the level of data that DC posts in the the public domain. In fact, it should be a model for all government business, state and federal, relative to taxpayers money.

quote:
.... Last summer, Vivek kundra, then the D.C. government's chief technology officer, introduced a massive overhaul of the way his agency hired about 300 consultants. Responding to vendors' complaints that the contracting process was unfair and rife with cronyism, kundra received $75 million from the D.C. Council to create the Information Technology Staff Augmentation program to foster greater transparency and accountability. kundra hired a company to help the city weed out unqualified résumés, established a central online database to advertise contracts and disclose who won each one, and posted video solicitations for jobs online. The ITSA program, he told council members during an oversight hearing in August, was a more open and more fair way of doing business in the District.

But this week, the technology agency was rocked by a bribery scandal that brought the allegations of cronyism back into full view and raised questions among consultants about whether anything has changed. .......

Probably the reason for the Acar video posted earlier.

quote:
..... Questions submitted to Mayor Adrian M. Fenty's office about the technology office's contracting process, including whether the hiring decisions by project managers were reviewed by higher-ranking authorities, were not answered yesterday. ......

Not to speak on behalf of the mayor, but I recall reading in the affidavit where there was concern about getting the "Ghost" employees approved, even down to a recorded discussion about only listing a request for the $117 hourly rate so as not to raise suspicion. With respect to oversight, Acar as indicated in the transcript was clearly worried on several occasions about being caught. Plus the fact that he constantly data sniffed a good portion of a netblock looking for traffic that mentioned specific keywords, is further indication of at least a perceived level of oversight. His ultimate undoing of course was itself a form of inherent oversight, that is, the ethical responsibility of all employees to report observed violations. Be glad that the "CW" recognized and acted upon this. Also note that in order for the scheme to work, Acar paid off another "not named, nor as yet charged" employee who approved or confirmed the invoices as being legit.

Also, a note worthy point:

quote:
..... "We have to find the right balance and find the right checks and balances," said council member Mary M. Cheh (D-Ward 3), who recently took over the committee that oversees the technology office.

City Administrator Dan Tangherlini said the scheme that Acar and Bansal are accused of running predates the implementation of ITSA in October. ..........

The article raises this issue:

quote:
............ Consultants who work with the technology office said yesterday that the bribery allegations emphasize their long-standing complaints that the agency lacks sufficient oversight to ensure that contracts are awarded fairly. They described a system in which project managers have virtually unabridged authority to issue "purchase orders" for consultants and then decide which ones receive the contracts.

Furthermore, they said, some managers making the hiring decisions used to work for the consulting companies that are making bids, and some of the consultants once worked as full-time city employees. Bansal worked for the city before founding Advanced Integrated Technologies about six years ago.

"How can we even trust these people anymore?" asked Laurie Collins, owner of a small information technology consulting firm that has worked with the city. Collins and other consultants complained that a group of fewer than 10 firms win a disproportionate bulk of contracts, even though the city has 97 registered technology vendors.

Bansal's firm won 14 of the 167 contracts, including two awarded by Acar, issued through ITSA so far.

Under ITSA, the city hired optimal Solutions and Technologies to oversee the contracting process. That company set up a Web site to post job openings and solicit résumés. The résumés of qualified candidates are then sent to D.C. project managers without company affiliations, a tactic aimed at trying to eliminate potential company biases from the managers making the hiring decisions.

But consultants said it is easy for vendors to sidestep that safeguard by telling the managers ahead of time which résumés to look for. ................

Since the records are public and are readily available, it should be an easy task to review all the outsourcing labor contracts and compile a percentage list of who they are going to over a given period.

The relevant websites corresponding to those listed in the excerpt above:

The ITSA OCT GLOBAL system: »itsa.ostglobal.com

ITSA Contract info: »sites.google.com/a/dc.gov/itsa-contract/Home

quote:
........... Tim Booker, owner of the consulting firm MindFinders, said managers have developed close relationships with specific vendors and are hesitant or unwilling to award contracts to other firms. Because of that, it is difficult for the city to ensure that it gets the best value and services for each contract. "Managers are not willing to break old habits," he said. "What it requires is leadership and training and oversight."

Michael Master, owner of the consulting firm GiniCorp, opposed the implementation of the ITSA program last summer during a D.C. Council hearing. But yesterday, he said he did not blame the system for failing to stop Acar and Bansal. "There's a longtime culture of bending the rules in this city," Master said. "Whether the process is transparent or not, which the whole ITSA thing was supposed to be, you can put in all the rules and laws, but bad people will always find a way to get around it. This just proves that."

Ref:»www.washingtonpost.com/wp-dyn/co···449.html

I will come back to OST Global, first let's address an issue that came up while reviewing SUSHIL BANSAL's company AITC:




The affidavit transcript lists Bansal as the president and CEO of AITC:

10. SUSHIL BANSAL was born on XXXXX XX, 1967 in India and has Social Security Account Number XXX-XX-7118. BANSAL and his wife, A.B., reside at XXXX XXXXXX XXXX XXXX, XXXX XXXXXX, VA 22027. BANSAL is a former DC government employee. BANSAL is the President and Chief Executive Officer of AITC. His wife, A.B., is listed on bank account documents as a Corporate VP of AITC. BANSAL is also an officer of Innovative IT Solutions, Inc. (IITS). In 2008 alone, AITC initiated international wire transfers from its Wachovia Bank account to a bank in India totaling over $200,000. BANSAL's 2007 tax returns included a home address given as XXXX XXXXXX XXXX XXXX, XXXX XXXXXX, VA 22027. These documents were filed with the District of Columbia for a renewal application of AITC to be a Certified Business Enterprise (CBE). On February 25, 2009, a FBI surveillance team observed BANSAL in the vicinity of his house at approximately 5:12 PM driving a vehicle with Virginia license plate SARANGA. According to DMV records, this vehicle is currently registered to Sushil K. Bansal and [A.B.], XXXX XXXXXX XXXX XXXX, XXXX XXXXXX, VA 22027. On March 2, 2009 a FBI surveillance team observed BANSAL leaving his house at XXXX XXXXXX XXXX XXXX and, after two stops, arriving at the business address of AITC.

11. Advanced Integrated Technologies Corporation (AITC) -- AITC is a Certified Business Enterprise (CBE) in the District of Columbia according to the Department of Small and Local Business Development. AITC recently moved to office space at 1707 L Street NW, Suite 250 Washington, D.C. 20036. According to publicly available records of District of Columbia purchase orders, between March 2004 and February 6, 2009, AITC did over $13 million in business with the DC government, primarily with OCTO. By way of information, AITC’s website (www.aitc.net) lists the following office in India: AITC Consulting Pvt. Ltd., 219 Tower “A” The Corenthum, A-41 Sector 92, Noida UP 201301.

12. Innovative IT Solutions, Inc. (IITS) -- IITS is a Certified Business Enterprise (CBE) in the District of Columbia according to the Department of Small and Local Business Development. IITS recently moved to office space at 1707 L Street NW, Suite 260 Washington, D.C. 20036. Before moving to this new space, AITC and IITS were located in different suites on the same floor of a different office building in D.C. The sub-lease for IITS’s office in the previous location was entered into by AITC. In addition, bank records show that AITC paid the rent for IITS at the previous location beginning in February 2007. According to publicly available records of District of Columbia purchase orders, between July 2008 and November 2008, IITS did approximately $220,000 in business with the DC government.
.

AITC's website is »aitc.net and this lack of "transparency" caught my attention:


Registration Service Provided By:
Domain Registry of America
Contact:
Web:>http://www.droa.com
.
Domain name: aitc.net
.
Registrant Contact:
AITC AITC
Private Registration
2316 Delaware Ave Suite #266
Buffalo
NY, 14216-2687 US
866-434-0212
866-434-0211
0c2bdd7a2799d6d2@private-contact.com
.
Update date: 2008-09-19
Expiration date: 2013-09-21

.
So why a cloak a hide registration, almost like a page from my scammer tracking handbook. Well it was updated during September 2008. I wonder if it was always like that, let's go back and have a look at what it looked like prior to 09/2008:


Registrant:
AITC
900 17th Street NWsuite 900
Washington, DC 20006
US
.
Domain Name: AITC.NET
.
Administrative Contact, Technical Contact, Zone Contact:
AITC
Sushil Bansal
900 17th Street NWsuite 900
Washington, DC 20006
US
(202)641-7888
faisal@goaitc.com
.
Domain created on 21-Sep-2004
Domain expires on 21-Sep-2008
Last updated on 12-Jul-2007
.
Domain servers in listed order:
.
NS1.DYNAMICNAME.COM
NS2.DYNAMICNAME.COM

.

So at domain renewal time Sushil Bansal must have decided to go the cloaking route. The question of course is why. faisal@goaitc.com GOAITC.COM has always been a cloaked registration, and up until 10/2008 hosted the AITC website.

This caught my attention:

Snapped 2009-03-15 03:08:08

»aitc.net/about-us.html


quote:
Advanced Integrated Technologies Corporation ( AITC) is an end-to-end Technology and Business Process Outsourcing Services company, serving the Government and Commercial sectors in the global market through multiple onshore and offshore centers, based out of USA and India.

Our multiple onshore and offshore centres based out of USA & India provide integrated technology-enabled business solutions in the IT and BPO sectors that meet with the increasing innovative demand of the industry & the strategic requirements of our clients.

AITC is a highly professional company with strong ethics and business values. At AITC we believe in delivering unparalleled business value to our customers through our highly competent and dedicated team of professionals who constantly strive to create, design and execute cutting edge ingenious solutions as well as create new business opportunities for our customers.

AITC is certified as an 8(a) company by SBA. It is also certified as a LSDBE by the DC Government. AITC is a prime contractor for IT Services (Schedule 70) with GSA. It is also a prime contractor of DCSS for IT Services with the DC Government.

This part: AITC is certified as an 8(a) company by SBA. and yes it is, as of 04/11/2006:




For those not familiar with what an SBA 8(A) certification is:

a. The mission of the 8(a) Business Development (BD) Program is to
provide participating businesses with managerial, technical, and
procurement assistance to assist them in achieving their full competitive
potential.

b. The 8(a) BD Program provides a logical, systematic approach to federal
market access and enterprise growth to businesses owned and controlled
by socially and economically disadvantaged individuals. The program
promotes business development over a nine-year period. The
participant’s progress is monitored and measured, and developmental
needs are determined by reviewing business plans annually. The
program assists firms by facilitating the award of sole-source and
limited-competition contracts and by providing business development
assistance. The intent of the above assistance is to enable firms to
compete successfully in the open market.
.

Excerpt of other descriptions:

Social and / or Economic Disadvantage - Only applicants who are members of social disadvantage groups can be considered for approval to the program. Economic disadvantage is an eligibility requirement of the 8(a) program and it is defined as a personal net worth of $250,000 or greater less, excluding the equity in a personal residence or business.

US Citizenship - Only applicants who are US citizens are eligible to apply for 8(a) status. Each year the federal government sets aside millions of contract dollars for qualified small businesses to bid and receive contracts relating to the many federal agencies. The designation of SBA 8(a) is a coveted program certification. Many federal contracts are "set aside" for 8(a) firms, meaning that only certified businesses may apply or be considered. To become SBA 8(a) certified, a business owner must take the time to apply for and receive certification.
.

A screen shot circa 10/2008 of the goaitc.com website shows, The SBA 8(A) logo, the "Local Small Disadvantaged Enterprise" logo, and the "GSA IT Schedule 70" logo:




So how did Bansal pull that off, several media outlets have reported :

...."Government records show Bansal is not a U.S. citizen and holds an H-1B visa,"...

It may be possile that there can be exceptions, though I am not aware of any that would be relevant to him.

Though it is widely reported that the SBA 8(A) is rife with abuse, »www.google.com/search?hl=en&q=ca···aq=f&oq= in case you are thinking that one can just appoint a token fiqure to head up your business. If I recall correclty the SBA addresses that issue in that the qualifying listed owner must own 51%, and actively participate in the day to day management of the business. In this case that appears to be Bansal.

Though there does not appear to be "IT offshore outsourcing" listed in any of the contracts listed in the AITC news releases »www.aitc.net/newsroom.html they may offer that as a contract option. From their brochure:




Ref: »aitc.net/images/hr-staff-augmentation.pdf

Though there is no indication that any taxpayer funded contracts have ended up going to offshore IT outsourcing, Bansal's company has an operation in India. »www.aitc.net/contact-us.html

With the amount of displaced domestic IT workers, I would hope that there are provisions in all government contracts that expressly prohibit offshore outsourcing of IT work while there are ample qualified people out of work here. In fact, I hope that the nations designated CIO Chief Information Officer Vivek kundra would promote that philosophy within the government. The current administration has decried tax breaks given to US businesses who offshore jobs. They certainly should also frown on any routine government IT contracts that end up sifting down to off shored work.

In passing, the company that was awarded the contract to provide DC's OCTO ITSA program: optimal Solutions and Technologies Inc. »www.ostglobal.com appears to be a very successful company with a host of exacting certifications »www.ostglobal.com/content/aboutu···ions.htm and were awarded numerous government contracts: »www.ostglobal.com/content/aboutus/news.htm

Also listed in Inc. 5000:

quote:
OST Makes Nation's 5,000 Fastest Growing Private Companies For Two Consecutive Years
August 15th, 2008 - OST has announced that for a second consecutive year it has been awarded by the Inc. 5000 Magazine as one of the fast growing companies in the United States. The Inc. 5000 award recognizes the accomplishment of innovative, dynamic, and successful companies in a wide range of industries. The companies are ranked according to percentage revenue growth from 2004 through 2007; OST had a revenue growth of 153.4%.

OST’s growth has been the result of their diversification in their work portfolio. OST has also increased the number of offices to better serve their clients. Furthermore, OST continuously invests in training for what they consider their most important asset, their employees. The firms’ framework and quality approach has been so innovative that they have been requested to share their Best Practices in national conferences such as Software Engineering Process Group (SEPG) conference, conducted by the Software Engineering Institute (SEI). Making the list is evidence of OST’s stability in a very competitive market.




I was very surprised to find that they still list themselves as a:

Federal Contracting Preferences
8(a), Small Disadvantaged Business, Small Business Enterprise

District of Columbia Contracting Preferences
Certified Local, Small Business Enterprise
at: »www.ostglobal.com/content/aboutu···cles.htm

Though there is nothing to doubt that they did properly qualify back in 2001:





quote:
8(a) Sources

O S T INC.
2001 M St NW Ste 3000
Washington DC 20036-3310
Contact: Vijay Narula 202-466-8099
Fax: 202-466-8088

Industry: NAICS 517911
Industry: NAICS 541330

Website URL: »www.ostglobal.com

SBA certified this company as of 2/27/2001 . The company's graduation date for the 8(a) program is 2/27/2010 . SBA case number: 106827.

SBA 8(a) Minority-Owned and Woman-Owned Business Directory

optimal Solutions and Technologies aka O S T INC

Vijay Narula, President & CEO

Ajay Madan, COO

They certainly are now very successful, and have achieved outstanding results. But at $23,000,000 million in revenue for 2008, it is a stretch to keep calling them a "Small minority owned Disadvantaged Business" Though the default graduation is always 9 years, there is nothing to prevent an "earlier" graduation. In fact the SBA will graduate companies that no longer meet the 8(A) qualifications. The SBA also requires that each participant file a detailed annual report to maintain eligibility: »www.google.com/search?hl=en&q=ca···1450.pdf

As I understand the system, businesses have to maintain their original "qualification status" throughout the program. Graduating early can be an indication of success. Unless I am missing something, somehow, small and disadvantaged just do not seem synonymous with where OST INC. is now. I also hope that they are not "offshore outsourcing" in the current business climate with respect to any portion of government contracts.

MGD


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Big can of worm in that poluted waters in D.C. with the rest of the Beltway Bandits that will take years to unravel.
The Middle East has their Baksheesh which is frowned upon by the U.S. Here we have just out right corruption that has been going on for so many year with the Government turning a blind eye that if the American voter knew just how bad it really had infiltrated into the procurement system they would stop paying taxes and recall their legislatures who have not only allowed it to happened..they feed off from it.
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reply to MGD
8(A) set aside Contracts to help small and disadvantaged business including women and minority STATUS was the biggest joke on the American Public since the TeaPot Dome. It became a breeding ground for corruption from day one. The next fatal step was to start taking business away from large well established and proven Government Contractors who designed and built major Systems..and force them out of business by having what they designed and built..now "MAKE TO PRINT" by those 8(A)'s who did not even have a clue how to make them...but had hired professioanl "proposal writers" many of whom were ex-government beaurocrats. Small Business "SET ASIDE" also let them get contracts for 2 to 3 times what the "job" was even worth or could be built by the original manufacture in the name of helping to STIMULATE small business.."SET ASIDE" ment only 8(A) could even bid..and this was abused to no end..then most of those 8(A)'s could not even deliver on time.. then had the government pay for cost over runs..and became a breeding ground for corruption and spy activity.

In many instances the procurement offices had no recourse..laced with pressure from Congressmen to have as many 8(A)'s in their on district..too many contracts went 8(A) even when it was known the awardee could never produce or sustain.

Are some of them Off Shore ?? You bet.

Why am I postings ?

Because the Security of the US started it's downward trend with that ticking time bomb..it still goes on today... prevalent across the board..but now deeply ingrained in all IT Security Contracts.
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reply to MGD
For additional information about optimal Solutions & Technologies, please contact us.

Headquarters Mailing Address
OST, Inc.
2001 M Street, NW
Suite 3000
Washington, DC 20036

General Inquires
Tel: 202-466-8099
Fax: 202-466-8088

Business Development
POC: Ron Rhodes
Tel: 202-467-7678

Human Resources
POC: Sarah Radcliff
Tel: 202-467-7677

Recruiting
POC: Robert Bruce
Tel: 202-467-7640

Contracts
POC: Jack Handrahan
Tel: 202-467-7676


Jack came out of the FAA

FAA awards $1.25b in contracts to small businesses
By Frank Tiboni

September 21, 1998

The Federal Aviation Administration recently awarded 14 contracts worth $1.25 billion jointly for services ranging from help desk to investment analysis support.

The Broad Information Technology Services contracts are the largest ever awarded to small and disadvantaged businesses, an FAA official said.

“There was some criticism that FAA was not doing anything for small and disadvantaged businesses, many of which are high-tech,’’ said Jack Handrahan, an FAA contracting officer. “We wanted to do something to give small businesses a shot.’’

The BITS contracts are five-year, performance-based contracts.

The initial value of each contract is $25 million to $50 million, with each one having the potential to double, based on satisfactory performance, he said.

“We decided on BITS in February because we wanted to keep money in the small-business community,’’ Handrahan said. “The big boys don’t play in this game. They get their fair share of contracts, but they don’t need them as much as small and disadvantaged businesses.’’

To compete for a BITS contract, companies were required to have earned $10 million in the past three years, employ at least 100 people and show expertise in one of four areas: systems management and support, mainframe maintenance, engineering and design, or security, Handrahan said.

FAA received 26 proposals Aug. 6. Seven of the winning companies participate in the 8(a) program, Handrahan said.

The agency’s Acquisition Management System, a series of procurement reforms made in 1996, made it possible to award the BITS contracts in less than three months, Handrahan said. Without AMS, the bidding process could have lasted 15 months, he said.

FAA officials also met with the losing companies to explain why their bids were turned down, he said.

“We want to make sure they don’t make the same mistakes again,’’ Handrahan said. “We want to help them get the contract the next time.’’

Universal Systems & Technology Inc., a 230-employee company in Fairfax, Va., was among the winning companies. Unitech will provide engineering support, software development, database administration, data processing and network support.

“The contract gives us a five-year window to continue to grow our business,’’ said Becky Umbaugh, director of business development in Unitech’s Washington office. “We already have three contracts with FAA, two in telecommunications, one in air traffic control. We are thrilled to continue working with FAA.’’

FAA makes up about 30 percent of Unitech’s business, Umbaugh said.

“We’re extremely proud of this effort in that it meets the needs of both FAA and firms that may not have had the chance to compete for these contracts otherwise,’’ FAA Administrator Jane F. Garvey said. “These companies bring superior talent and resources to FAA.’’
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One who knows

@comcast.net
reply to MGD
Wait until they find out that Vivek is on the board at OST and he knows ther CEO...hence the award of ar $75M contract. How does this guy still have a job?


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said by One who knows :

Wait until they find out that Vivek is on the board at OST and he knows ther CEO...hence the award of ar $75M contract. How does this guy still have a job?
I see that rumor is circulating today: »www.businessinsider.com/vivek-ku···b-2009-3
quote:
The Truth said:
Mar. 18, 3:08 PM
They really need to investigate the relationship with sushil bansal, Vivek and OST. It is rumored Vivek is on the board of OST, who received a $75M contract from DC Government. All they have to do is offer Yusuf a deal. he has been monitoring the email traffic and has the goods on Vivek.
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4 edits
reply to One who knows
said by fatness See Profile :

said by One who knows :

Wait until they find out that Vivek is on the board at OST and he knows ther CEO...hence the award of ar $75M contract. How does this guy still have a job?
I see that rumor is circulating today: »www.businessinsider.com/vivek-ku···b-2009-3
quote:
The Truth said:
Mar. 18, 3:08 PM
They really need to investigate the relationship with sushil bansal, Vivek and OST. It is rumored Vivek is on the board of OST, who received a $75M contract from DC Government. All they have to do is offer Yusuf a deal. he has been monitoring the email traffic and has the goods on Vivek.
There's nothing quite like helping to spread a derogatory, slanderous and unsubstantiated rumor. That quote, incorrectly posted by 'One who knows' (sure he does), was part of an 'anonymous' comment to the actual Business Insider story. As such, why bother to associate yourselves with it? It was not part of the story. Any of you have proof?

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1 edit
From your link:
The mysterious petty theft that President Barack Obama's new computer chief committed at age 21 was shoplifting. A 1996 ... police report ... shows Vivek kundra was observed by a security guard putting the men's shirts into a shopping bag ... kundra pleaded guilty ... The White House has called a "youthful indiscretion" long ago resolved.
It may just be me... but it sure seems like 'time' has warped in recent years:
"youthful indiscretion"... age 21
"long ago resolved"... 13 years prior

Yeah... it's gotta be just me...
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