The Project On Government Oversight (POGO) Blog

Is the White House Hiding the Influence of Special Interests on Crafting Regulations?

By DANA LIEBELSON and BRYAN RAHIJA

Click here to join POGO's Un-Do Influence Campaign: a movement to reclaim Washington

Senior government officials are ignoring a White House directive that requires disclosure of key documents in the federal rulemaking process, thus hiding the potential influence of special interests on the writing of government regulations, according to a letter POGO sent yesterday to President Obama.

POGO's concern relates to--and bear with our wonkiness for a moment--how the Office of Information and Regulatory Affairs (OIRA)--the White House office within the Office of Management and Budget (OMB) responsible for reviewing federal regulations that protect public health and safety--and rulemaking agencies are interpreting Executive Order (EO) 12866.

This EO, issued by President Bill Clinton in 1993, requires OIRA to publicly disclose all documents exchanged between OIRA and the rulemaking agencies during the crafting of new regulations. The EO also requires the rulemaking agency to identify to the public any changes made at the suggestion or recommendation of OIRA. President Obama reaffirmed the EO last year in his own executive order.

POGO readers should care because failure to heed the requirements in this EO could substantially harm the public interest. POGO’s letter cites one recent example in which OIRA apparently weakened a final rule on disclosure of conflicts of interest held by researchers who receive funding from the National Institutes of Health (NIH).

Part of the problem, POGO argues, is that OIRA and agencies have flouted these transparency requirements since the 1990s:

Morning Smoke: Bipartisan Bill Aims to Fight 'Modern-Day Slavery' by Defense Contractors

MORNING SMOKE

Where there's smoke, there's fire. POGO's Morning Smoke is a collection of the freshest investigations, scoops, and opinions related to the world of government oversight. Have a story you'd like to see included? Contact POGO's blog editor

Contract Oversight

GOP, Dems Come Together to Fight Human Trafficking by Contractors in Iraq, Afghanistan
Pete Kasperowicz, The Hill

National Security

China Does Nothing to Stop Counterfeit Defense Parts; Findings 'Should Outrage Every American'
Colin Clark, Aol Defense

Why Can't the Air Force Build an Affordable Plane?
David Axe, The Atlantic

USAF, Boeing Deny GAO Warning on Tanker Program Test Schedule
Marcus Weisgerber, Defense News

Defense Lobby Chief Wants 'Eyes Wide Open' to Impact of Sequestration Cuts
Jeremy Herb, The Hill

Nuclear Weapons

GAO Releases Report Critical of CMRR
Frank Munger, Atomic City Underground

Open Government

Justice Accused of Hindering Multi-Agency FOIA Website
Alice Lipowicz, Federal Computer Week

Financial Oversight

U.S. House Back Exemptions to Swaps Rules in Bipartisan Vote
Silla Brush and Phil Mattingly, Bloomberg

Government Oversight

Will the House's Ethics Watchdog Be Silenced?
Daniel Schuman, Sunlight Foundation

Whistleblower Issues

Report: AF Has Most Whistleblower Complaints
Kristin Davis, Air Force Times

Sen. McCaskill Shows Support for Opening Markup of Major Defense Bill

By DANA LIEBELSON

The campaign by POGO and allies to open up the Senate markup of the U.S. defense budget bill continues to gain steam. Almost thirty good government, taxpayer, and civil and human rights organizations from across the ideological spectrum have pressed the Senate Armed Services Committee (SASC) to shine a light on the National Defense Authorization Act (NDAA). Additionally, Committee Member Senator Claire McCaskill (D-MO) recently issued a statement reaffirming her support for opening the markup:

The American people have the right to know what their leaders are saying and doing as they set the national security priorities for our country, a process that includes mapping out how over half a trillion dollars in taxpayer funds should be allocated. That’s why, since I came to the Senate, I’ve fought hard for the Senate Armed Services Committee’s consideration of the National Defense Authorization Act to be fully transparent and open to the public. We had some success last year, when I opened to the public the consideration of the Readiness Subcommittee’s portion of the annual defense bill. I’m hoping to build on that success this year.

The NDAA authorized more than $662 billion of taxpayer dollars for FY 2012, but it was drafted in secret in the Senate committee. This makes little sense, given the fact that on the House side, the markup is open and the Committee can easily move to an executive session when classified information is being considered. In addition to opening up the markup, drafts of the bill and proposed amendments should be posted online in advance—as is done by House Armed Services and most other committees.

John LaBombard, a spokesman for McCaskill, told POGO that “every year McCaskill has been a member of SASC, she has fought to open the full committee negotiations [and argued that] only a tiny portion of the legislation deals with classified information.”

You can take action on this issue by going to www.OpenNDAA.org to sign on to two letters: one thanking SASC members like McCaskill who have voted for transparency, and another urging the others to vote against conducting the NDAA markup in a closed session this year. 

Dana Liebelson is POGO's Beth Daley Impact Fellow.

Follow @dliebelson

Photo via POGO.

Senators Introduce Bill to Reel in Excessive Contractor Compensation

By SCOTT AMEY

Last week, Senators Barbara Boxer (D-CA) and Charles Grassley (R-IA) proposed the Commonsense Contractor Compensation Act of 2012 (S. 2198) to reduce taxpayer reimbursement of government contractor compensation. The bill would apply a $400,000 compensation cap to all contractor employees, not just defense contractors as mandated in the 2012 Defense Authorization bill (see Sec. 803).

This bill would lower from nearly $700,000 (a figure that’s expected to rise in the future), the amount contractors can bill the government for compensation. The contractor compensation cap was a hot topic in 2011, and is burning bright in 2012, with federal employees pitted against contractor employees. Even the White House has weighed in, blogging in January that the contractor executive compensation cap of $693,951 should be reduced to a "level on par with what the Government pays its own executives—approximately $200,000."

A similar bill in the House, Rep. Paul Tonko’s (D-NY) Stop Excessive Payments to Government Contractors Act of 2011 (H.R. 2980), would bring the cap under that $200,000 level.

There is no doubting that this issue is polarizing. A controversial new proposal by the House Budget Committee, doesn’t even try to hide the fact that it wants to sacrifice federal jobs in order to prop up the private sector. The Committee, chaired by Rep. Paul Ryan (R-WI) wants to control “unsustainable growth” and “privileges” enjoyed by government employees by:

Morning Smoke: Think the F-35 is a $1 Trillion Program? Try $1.4 and Rising

MORNING SMOKE

Where there's smoke, there's fire. POGO's Morning Smoke is a collection of the freshest investigations, scoops, and opinions related to the world of government oversight. Have a story you'd like to see included? Contact POGO's blog editor

National Security

The F-35 is Not a $1 Trillion Program, It's More
Winslow Wheeler, Center for Defense Information

Will the $55 Billion Bomber Program Fly?
David Axe, iWatch News

Paul Ryan's Budget a Turning Point in Defense Debate
Sandra Erwin, National Defense Magazine

Lawmakers: U.S. Air Force Numbers Lack Credibility
Marcus Weisgerber, Defense News

Contract Oversight

DoD Looking for 'Cost-Conscious' Contractors, Assad Says
Sarah Chacko, Federal Times

Lockheed Agrees to Pay $15.8 Million Settlement in False Claims Act Case
Mike Scarcella, The Blog of Legal Times

Experts Call for Better Training of Warzone Contracting Officers
Sarah Chacko, Federal Times

Energy Issues

Federal Regulators 'Could Have Prevented' Upper Big Branch, W. Va. Mine Disaster, Report Concludes
Brad Plumer, The Washington Post

Audit: Natural Gas Lines Tied to Fracking Lack Oversight
Garance Burke, Associated Press

Financial Oversight

MF Global's Corzine Maybe be Liable if Customer Risk Known
Linda Sandler and Phil Mattingly, Bloomberg

Bank Lobby's Onslaught Shifts Debate on Volcker Rule
Robert Schmidt and Phil Mattingly, Bloomberg

SEC Takes Wells Fargo to Court to Enforce Subpoenas
Sarah N. Lynch and Rick Rothacker, Reuters

New FOIA Portal Gets High Marks

By ANDREW WYNER

A House Oversight and Government Reform subcommittee belatedly celebrated Sunshine Week this past Wednesday by hosting a hearing on FOIA in the 21st century (the House was out of session during Sunshine Week itself). The witnesses, selected both from good government organizations and federal agencies, all testified before the Subcommittee on Technology, Information Policy, Intergovernmental Relations and Procurement Reform  on the importance of online Freedom of Information Act (FOIA) services. Witnesses were not, however, in complete agreement in exactly how to bring FOIA into the 21st century.

The FOIA Portal, being developed by the Environmental Protection Agency (EPA), the National Archives (NARA), and the Department of Commerce, received high marks from Members of Congress and witnesses alike. Acting Subcommittee Chairman Mike Kelly (D-PA) and Ranking Member Gerry Connolly (D-VA) were both enthused by the FOIA Portal and the positive impact it would have. Sean Moulton, director of Federal Information Policy at OMB Watch, stated  “Congress should make it clear it’s best for every agency to participate.” Moulton said that the problem with FOIA is “a lack of consistency. The FOIA portal offers a level of consistency across government.”

Senate Sends STOCK Act to President Obama

By SUZANNE DERSHOWITZ

Yesterday, the Senate passed the House version of the STOCK Act by a vote of 96 to 3, sending the bill to President Obama for his expected signature. POGO is deeply disappointed that Senate Majority Leader Harry Reid (D-NV) moved to force a vote without convening a conference committee to hash out the differences between the House and Senate bills. Along with Senate Judiciary Committee Chairman Patrick Leahy (D-VT) and Ranking Member Chuck Grassley (R-IA), POGO had called for an open, transparent House-Senate conference to ensure that the best of both anti-corruption bills would be included in the law.

Unfortunately, critical provisions on political intelligence reporting requirements and public corruption prosecution improvements were scrapped from the final bill. A vocal supporter of political intelligence industry regulation, Sen. Grassley was one of the three “no” votes on the weakened bill. The New York Times reports that Grassley said rejection of the proposal was “a victory for Wall Street and a defeat for the American people — a victory for the hedge funds and big banks that like the secrecy of the status quo.”  

However, POGO is pleased that the House version’s stronger executive branch coverage was included in the final text. The bill heading to President Obama strikes the right balance for more transparency in the executive branch by mandating the online posting of financial disclosure reports already required to be public under law. 

Key Member of Congress Lends Support to Whistleblower Robert MacLean

By DANA LIEBELSON

Representatives Elijah Cummings (D-MD), Carolyn Maloney (D-NY), and Dennis Kucinich (D-OH) have submitted an amicus brief to the U.S. Court of Appeals for the Federal Circuit on behalf of  Robert MacLean--a whistleblower who revealed wrongdoing in the Transportation Security Administration (TSA). Cummings, the ranking member of the House Oversight and Government Reform Committee (HOGR) and a long-time champion for whistleblower rights, is the most recent representative to join the cause.  

This terrific news comes on the heels of POGO’s recent action alert, which urged supporters to ask their Members of Congress to take a stand for whistleblower protections by supporting what will likely be MacLean’s final appeal.  

“Mr. Cummings’ entry is a powerful credibility booster shot, since he is the ranking member of HOGR that has jurisdiction over the Whistleblower Protection Act,” Tom Devine, legal director at the Government Accountability Project (GAP) told POGO.

Morning Smoke: Senate Sends STOCK Act to the President

MORNING SMOKE

Where there's smoke, there's fire. POGO's Morning Smoke is a collection of the freshest investigations, scoops, and opinions related to the world of government oversight. Have a story you'd like to see included? Contact POGO's blog editor

 Financial Oversight

STOCK Act Passes, Insider Trading Ban Heads to Obama
Scott Wong, POLITICO

Larry Summers, the Revolving Door, and the World Bank
Felix Salmon, Reuters

Government Oversight

Oversight Oversight
Winslow Wheeler, Battleland

How Indefinite Detention Snuck into Obama's Defense Bill
Dana Liebelson, The Week

Study Shows House Members Profit
Eric Lipton, The New York Times

National Security

GOP Budget Would Reverse Defense Cuts
Rick Maze, Army Times

U.S. Relaxes Limits on Use of Data in Terror Analysis
Charlie Savage, The New York Times

Pentagon: Trillion-Dollar Jet on Brink of Budgetary Disaster
David Axe, Danger Room

Whistleblower Issues

Oracle Investor Sues Over $200 Million Settlement
Jessica Dye, Reuters

Seven Ingredients for a Successful Whistleblower Program
Erika Kelton, Forbes

 

Morning Smoke: Senate Needs an Inspector General to Keep Them Honest, Says McCaskill

MORNING SMOKE

Where there's smoke, there's fire. POGO's Morning Smoke is a collection of the freshest investigations, scoops, and opinions related to the world of government oversight. Have a story you'd like to see included? Contact POGO's blog editor

Government Oversight

McCaskill Proposes Inspector General to Keep US Senate Honest
Fox News 

Financial Oversight

CFTC Head Keys In on Gas Prices to Justify Budget Boost
Peter Schroeder, The Hill

Deutsche Avoids Dodd-Frank Rule
David Enrich and Laura Stevens, The Wall Street Journal

Finance Council Should Speed Up Speculation Curbs, Chilton Says
Silla Brush, Businessweek

National Security

NSA Chief Denies Domestic Spying But Whistleblowers Say Otherwise
James Bamford, Threat Level

Senator Vows to Block Pentagon Base Closure Attempts
Rick Maze, Defense News

New Wave of Procurement Reforms Could Soon Hit the Pentagon
Sandra Erwin, National Defense Magazine

Whistleblower Issues

Congressfolk: MacLean is Bona Fide Whistleblower, Should be Protected
Teri Sforza, Orange County Register

Nuclear Energy

Party's Over at Los Alamos
Wren Abbott, Santa Fe Reporter

Open Government

Senate Dems Push 'Disclose Act 2.0'
Kevin Bogardus and Rachel Leven, The Hill

Lobbying

Lobbying Association Responds to Criticism by Calling for More Regulation, Education
T.W. Farnam, The Washington Post

Rep. Turner Would Rather Buy a Nuclear Facility than Fix the Air Conditioning

By MIA STEINLE and DANA LIEBELSON

The debate on the future of the U.S. nuclear weapons complex continues - and it's starting to resemble a real estate deal gone sour. Representative Mike Turner (R-OH) has written another letter to Representative Ed Markey (D-MA), urging him to visit two nuclear weapons facilities that Turner wants to waste billions of dollars replacing.

Turner is the desperate real estate agent, trying to convince the American public to buy $14 billion in property during a housing slump. The problem is the two proposed nuclear facilities that Turner is selling—intended to replace the Chemistry and Metallurgy Research facility (CMR) in New Mexico and Building 9212 in Tennessee—are unnecessary. The existing facilities could be upgraded at a fraction of the cost to taxpayers.

No one knows this better than Markey, who recently introduced the Smarter Approaches to Nuclear Expenditures Act (SANE Act), which, among other savings, calls for cancelling the two proposed Department of Energy nuclear facilities and saving about $14 billion.

In a letter to Markey last month, Turner called the two existing facilities “deplorable” and invited Markey to see them firsthand. Turner’s letter included photos of some rust on the electrical panels and heating and air handling units at Building 9212. But a local group, the Oak Ridge Environmental Peace Alliance, said these problems could be relatively easy fixes that don’t necessitate a multi-billion dollar replacement facility.

That’s right: Real Estate Agent Turner is essentially telling taxpayers that since their air conditioning is crappy, they should fork over billions for a brand new house. Any day now, he’s going to be asking us to pony up for a marble patio. Although the Obama Administration wants to expedite construction of the Building 9212 replacement, known as the Uranium Processing Facility (UPF)—a building of truly questionable utility—there’s substantial evidence that support for the two new proposals is losing steam. As we learned from last month’s presidential budget request, the CMR replacement has been put on hold for at least five years.

Intelligence Community No Longer Stiff-Arming Congressional Watchdogs

By BRYAN RAHIJA

Steve Aftergood reports that the watchdogs at the Government Accountability Office (GAO) have made progress in reclaiming their authority to conduct oversight of the intelligence community.

According to Aftergood, the GAO has completed a classified review of FBI counterterrorism programs, and is currently investigating the role of contractors in intelligence agencies. 

As POGO has noted in the past, the GAO has long had the statutory authority to conduct oversight of the intelligence community. The intel community, however, has historically resisted the GAO's gumshoeing. 

So what's the cause for the recent turnaround? Aftergood points to a May 2011 directive issued by Director of National Intelligence James Clapper:

That DNI directive appears to have broken the logjam of agency resistance, and at least some parts of the intelligence community that previously rebuffed GAO inquiries have become completely cooperative, congressional officials said.

The DNI directive was born out of a requirement in the Intelligence Authorization Act for FY 2010.

POGO strongly supported an amendment to the Act that would have crystallized the GAO's authority to conduct oversight of the intelligence community. But the amendment disappeared from the final legislation without a trace, and in its place was the instruction to the DNI. We were skeptical that this would result in allowing Congress to fully assert its power, but it seems at least now there is some oversight, which we welcome.