WASHINGTON (NNS) -- Secretary of the Navy Ray Mabus directed that all active contracts and task orders with Advanced Solutions for Tomorrow, Inc. (ASFT), a Georgia firm whose president has been charged with fraud against the government, be discontinued, March 11.
This action sets a precedent within the Department, and sends a strong message that the secretary will act swiftly and decisively, to protect the interests of the department.
As a result, after thorough review by contracting officials, technical personnel, and legal counsel, the Naval Sea Systems Command (NAVSEA) has terminated existing contracts with ASFT.
Previously, the Department of Navy suspended ASFT and its founder and president from contracting with the federal government, Feb. 11, based upon a criminal complaint entered in the United States District Court for the District of Rhode Island, Feb. 8.
This suspension precludes ASFT from entering into new Federal Government contracts. The criminal complaint charged a Navy systems engineer, and the founder and president of ASFT, with bribery of a public official in connection with an alleged ongoing kickback scheme involving approximately $10 million of naval funds.
Under one of the terminated contracts, ASFT provided various engineering and technical services for submarine combat and command and control systems support to the Naval Undersea Warfare Center Newport Division. Other terminated contracts were in support of unmanned undersea vehicle capability, and the design and development of combat systems architecture.
Currently, a special review team (SRT) appointed by Commander, NAVSEA, is working to determine how contract and financial processes operated in this case, as compared with the processes set forth in applicable laws, regulations, and other guidance; and to recommend improvements to processes that will mitigate the risk of fraud in the future. A senior-level panel will review the team's findings and recommendations, and consider whether any further actions are appropriate.
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