WHO: Thirty-three federal departments and agencies
WHAT: President Barack Obama and members of Congress specifically warned federal agencies this year not to award stimulus contracts to companies with histories of shady dealings with the federal government. But a Washington Post analysis found that so far, 33 federal departments and agencies have awarded more than $1.2 billion in new contracts to at least 30 companies known to have sold defective products, faked safety tests and padded expenses with false travel claims and fraudulent fees.
WHAT’S BEING DONE: The White House followed up with a new memo Tuesday, requiring agencies to cut contract spending by 7 percent in the next two years and hire at least 5 percent more contracting officers in the next five years to manage large contracts. Agencies must also cut 10 percent of their “high risk” and noncompetitive contracts this fiscal year.