The costs and impacts of bribery cases are deep and far-reaching. U.S. Marine Corps Enrico DeGuzman pleaded guilty to a bribery charge last week. He admitted that he accepted more than $67,000 for meals, drinks, entertainment, and hotel stays while in Hong Kong, Singapore, and Tokyo from Leonard Glenn Francis…or Fat Leonard, CEO of the Glenn Defense Marine Asia (GDMA). DeGuzman provided Leonard with confidential Navy information, assistance, and favor in return for the bribes and gifts. One meal that DeGuzman enjoyed, along with others, cost $40,000 – a far cry from the typical $20 gift ceiling. If you are a SETA contractor and have wondered why you and your coworkers can’t buy your government program manager a collective gift on their wedding registry, bribery cases like Fat Leonard are the reason. DeGuzman was one of nine members of the U.S. Navy’s Seventh Fleet indicted by a federal grand jury in March 2017, and he is the second of the Seventh Fleet defendants to plead guilty. The remaining defendants, who are accused of trading military secrets and substantial influence for sex parties with prostitutes and luxurious dinners and travel, are scheduled for trial in February 2022, just five years after their initial indictment. The case has led to federal crime charges against 34 Navy officials, defense contractors, and of course, the GDMA corporation.
“Mr. DeGuzman knowingly misused his position of trust as a senior U.S. Marine Corps officer to actively work with, and advocate for, a corrupt U.S. Navy contractor, while expecting and receiving lavish gifts in return, all at the expense of the U.S. Navy and the national security interests of the United States,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “As this case underscores, DCIS will work tirelessly with its partners to root out corruption within the Department of Defense and its components in order to maintain the trust, faith, and precious resources of the American taxpayer.”
Layoffs Impacting the Cleared Industry
| Collins Aerospace | COVID-19 continues to impact the aviation industry. For the fourth time this year, Collins Aerospace sends out another WARN notice. This time, the layoffs are in Cedar Rapids, IA, impacting 37 employees. The total layoffs for the year in Iowa for Collins Aerospace is now up to 180 workers. As for growth for the aviation company, the recent acquisition of FlightAware adds 130 employees to their business unit. |
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Hiring impacting the Cleared Industry
| BAE Systems | A new office building for BAE Systems near the Manchester-Boston Regional Airport means the defense contractor is on the lookout for up to 800 engineers and technicians to fill the 210,000 square foot facility. BAE System is also hiring about 100 scientists, specifically for its FAST Labs. The research and development work done at the labs is focused on artificial intelligence, machine learning, and other technology advancements that impact work like the F-35.
“This building was built specifically for our engineering and program management organization to actually employ and deliver new capability to respond to the ever increasing national security threats,” said Lisa Aucoin, vice president of F-35 Solutions at BAE Systems. Despite working from home during COVID-19, the labs and cleared work requires workers to also be on site. With new additions to the team who have relocated to the area, as well as, former remote workers, the number of on-site employees continues to grow in the northeastern region for BAE Systems. “My experience has been that people are wanting to get back to work in the new normal,” Aucoin said. “And the new normal to them means flexibility in the workplace, but making sure they know the company is taking care of them.” |
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Cleared Employer at Work: CACI
Interested in joining a company that values your career mobility as much as you do, and advancing national security while advancing your career? Invent Your Future with CACI.
Opportunity to Watch
Last week, Deputy Secretary of Defense Kathleen Hicks announced plans for the DoD to work with other agencies – like the Small Business Administration (SBA) to create more opportunities for small businesses on federal contracting vehicles. When it comes to bidding on military technology contracts, Hicks has plans to streamline the process.
“I realize that doing business with the DOD is not always easy. Because of our unique security requirements and procurement practices, we can be a challenging customer,” Hicks said during a speech at the 30th Annual Pennsylvania Showcase on Commerce. “But we are committed to examining the administrative barriers that small businesses face in working with us. And we will take meaningful action to remove barriers where we can.”
Hicks goal is to keep the defense industrial base vibrant and full of small businesses who are able to innovate and rapidly respond to prototype and conceptual needs. Regulations – including the Cybersecurity Maturity Model Certification (CMMC) can add costs and red tape for smaller organizations, which is a problem that the Dod seeks to solve. Hicks announced a new initiative for the DoD that aims at understanding and reducing the barriers that impact smaller companies in the defense industrial base.
