Jul 27 1994
From The Space Library
In a hearing of the House Energy and Commerce Committee, chair-man John Dingell, Democrat from Michigan, pressed NASA officials to explain why they had selected Boeing as prime contractor for the Space Station in late 1993 in spite of the firm's having failed NASA's own cost-control reviews. NASA officials admitted they did not know that Boeing was under 21 federal criminal investigations and was forced to pay the government $161 million in settlements. Testifying for NASA were Deidre A. Lee, Associate Administrator for Procurements, and Deputy Administrator John R. Dailey. In addition to the problems with Boeing, Michael Thibault, Assistant Director of the Defense Contract Audit Agency, said that an audit of charges by IBM, a subcontractor to McDonnell Douglas, one of the earlier Space Station contractors, found that about 20 percent of IBM's $490 million charges were not allowable under its contract. (LA mimes, Jul 28/94; SP News, Aug 1-7/94)
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