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IPFS News Link • Contractors, Government & Military

Millions Flow to Pentagon's Banned Contractors Via a Back Door

•, by Sam Skolnik

BP, IBM, Boeing among contractors that have benefited from law

Some of the world's largest companies have benefited from a little-known law that lets the Defense Department override decisions barring contractors accused or convicted of bribery, fraud, theft, and other crimes from doing business with the government.

International Business Machines Corp.Boeing Co.BP Plc, and several other contractors have received special dispensation to fulfill multimillion-dollar government contracts through "compelling reason determinations." That process allows the Defense Department in rare cases to determine that the need to fulfill certain contracts justifies doing business with companies that have been suspended from government work.