Friday, July 29, 2005

Small Business: Federal investigators looking into one of the largest homeland security contracts since 9/11

The Washington Post reports that Federal investigators are looking at a small California company that hit the jackpot when it won a no-bid contract to help hire airport screeners.

Until it was hired by a contractor to the U.S. government to help in the hiring of some 60,000 airline passenger screeners, Eclipse Events Inc. was a one-person meeting-planning company.

The company has now hired hundreds of recruiters to meet the demand for screeners.The company eventually billed $24 million, of which about $5.5 million was paid to Eclipse's president/owner. The newspaper said about $15 million in expenses is being looked at as unsubstantiated.

Related Links
A Subcontractor's Short But Lucrative Existence (Washington Post)
TSA Airport Security Contract Examined for Fraud (Washington Post)
Small company reaps huge no-bid contract (