The Cons of Contracting

An expanding investigation into procurement fraud at the Special Operations Command at MacDill Air Force Base in Tampa, Fla., has people wondering just how involved contractors should be in federal buying decisions.

William E. Burke, a private contractor working on acquisition decisions at SOCOM,

which leads military operations against terrorist networks, pleaded guilty in October to bribery charges. He admitted to favoring certain contractors and recommending their products for purchase by SOCOM, in return for cash and unspecified future compensation. Burke, 50, of Odessa, Fla., was an employee of Alexandria, Va.-based Sentel Corp., which sells equipment and services to government agencies, when he worked for SOCOM on acquisition recommendations from 1999 to June 2005.

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"There are internal and external checks in the system. Mr. Burke's job was to research and make recommendations on projects, but he did not have decision-making authority over USSOCOM acquisitions," says Ken McGraw, SOCOM spokesman.

Burke received only $9,000, but according to the plea agreement, he was promised unspecified "substantial compensation" in the future. Sentel denies all wrongdoing and says Burke's illegal activity resulted from work, he was doing on his own. He faces up to 15 years in prison and a $250,000 fine.