According to the most recent report from the Special Inspector General for Iraq Reconstruction (SIGIR) to Congress, 18 individuals and companies have been suspended (pdf) and 9 individuals and companies have been debarred (pdf).
The big news is that the Army has asked the Parsons Global Services Company (a subsidiary of Parsons Corporation) to show cause why the firm should not be proposed for debarment. SIGIR's report stated:
In addition to suspension and debarment actions, during the first quarter of 2007, the Suspension and Debarment Official formally requested that Parsons Corporation (Parsons) provide information regarding its current responsibilities as a government contractor. This action was based on allegations made by SIGIR against Parsons Global Services Company, a subsidiary of Parsons Corporation, regarding contracts awarded to Parsons by the U.S. Army Corps of Engineers, Gulf Regional Division. These allegations called into question the effectiveness of the company's standards of conduct and internal control systems, resulting in an inquiry based on the provisions of Defense Federal Acquisition Regulation Supplement (DFARS) Section 203.7000. No action has been taken to date against Parsons or its subsidiaries pending the outcome of this inquiry.
Parsons ranks outside the Top 100 contractors on OMB Watch's www.fedspending.org, but the government's action is a positive sign that it wants to work with responsible contractors. On April 20, 2007, the House Committee on Homeland Security held a hearing on "Responsibility in Federal Homeland Security Contracting." POGO testified before the Committee, highlighting the government's under-utilization of the suspension and debarment system, stating:
Another problem that faces DHS is the under-utilization of the suspension and debarment system as a tool to weed out risky contractors. To be fair, the problem is not limited to DHS - all federal agencies under-use suspension and debarment against large contractors that supply the majority of the $417 billion worth of goods and services to the federal government each year. Overall, the government needs to reemphasize the importance of preventing risky contractors from receiving future taxpayer dollars.
Since 2002, POGO has urged agencies to use the suspension and debarment system as a tool to prevent risky contractors from receiving taxpayer dollars. Nevertheless, contractors with very questionable contracting histories continue to receive federal dollars. Until those contractors are held accountable and federal dollars cease lining their pockets, taxpayer dollars will be at risk to waste, fraud, and abuse.
-- Scott Amey