European Stars And Stripes (Newspaper) - July 9, 1988, Darmstadt, Hesse                                Page 4 the stars and stripes saturday july 9,1988 Dod need for More fraud inspectors May be forestalled by budget cuts Washington a although the Pentagon has increased the number of inspectors trying to spot fraud among defense contractors More Are needed and Are not Likely to be added to the staff the defense department s inspector general said wednesday. Given the defense department s projected budget shortfalls for the coming years i am pessimistic that the investigative organizations will get the additional resources they need june Gibbs Brown told the House armed services committee. She did not speak specifically about details of the ongoing criminal investigation into fraud and bribery allegations among Pentagon contractors and Consul Tants. But she said the Pentagon has about 1,000 people who do nothing but investigate fraud a Sharp increase from 1982, when 375 were assigned to that task. In spite of these impressive gains i remain concerned Over the resources available to the defense criminal investigation organizations for the detection and investigation of fraud she said. At least 450 More fraud investigators Are needed she said. Confusion surrounds defense Secretary Frank car Lucci s hurried announcement of contract suspensions in response to the widening Pentagon bribery probe with officials unable to say which projects Are covered. Pentagon spokesman Dan Howard said tuesday that the defense department still is trying to implement Carlucci s order. Howard suggested Carlucci s announcement was a response to clamouring in Congress and elsewhere for the Pentagon to do something to restore its credibility in the midst of the criminal investigation. We had people Here and people on the Capitol Hill demanding immediate action to suspend people to suspend contracts Howard said when asked to explain the timing of Friday s announcement. Defense contractors say they Are still waiting for formal notification of the contract suspensions. We re in the dark said Johann Whitney a try inc. Spokeswoman. . Base hosts first marshal Sergei Fakhr Omeyer second from left and adm. William Crowe Center visit new River n.c., air station. A photo soviet visit Jacksonville n c. A the first soviet official Ever to visit Camp Lejeune watched . Marines train thursday and gave the thumbs up sign As a harrier Jet completed a vertical take off and roared Over the re viewing stand. I do believe he was impressed said adm. William j. Crowe jr., chairman of the joint chiefs of staff who accompanied the soviet marshal Sergei Fedoro Vich Fakhr Omeyer. Crowe related that Fakhr Omeyer who is on a tour of military installations tapped him on the shoulder and gave him the sign As the two watched the demonstration at the base. Fakhr Omeyer chief of the general staff of the soviet Union watched a task Force exercise involving Marine infantry units tanks helicopters and in flight refuelling As Well As the harrier attack jets which lift into the air from a standstill. Crowe and the soviets Are scheduled to visit the Navy s newest aircraft car Rier the Theodore Roosevelt in the Vir Ginia capes Region. They also will observe army main Battle tanks at fort Hood Texas and see a new b-1b bomber in South Dakota. The Field marshal and his party which includes ranking officers from most of the soviet armed forces will attend a Rodeo and Barbecue on a cattle ranch in Oklahoma and see the Alamo in san an Tonio Texas on saturday. Another Stop is colonial Williamsburg a. Punishing Dod contractors May slow deliveries Washington not As the defense department begins to move against military contractors touched by unfolding accusations of fraud and bribery it is confronted with a Trou bling question How far can it go before it interrupts the flow of equipment vital to forces in the Field we re looking at a potentially serious gridlock on National Security the chairman of the House armed services committee rep. Les Aspin d-wis., warned in a hearing last week. If military contractors Are punished weapons could become More costly and be delivered late. If they Are not punished they will have been rewarded for malfeasance Aspin said. At Issue Are contracts that May have be come tainted because the Winner of a com petition obtained inside or secret information through illicit or unethical Means. For instance a team of the Mcdonnell Douglas corp. And the general dynamics corp. Won a contract last december that would eventually have them build 450 advanced tactical aircraft or a-12s, for the Navy the loser was a team led by the Grumman corp. Of Bethpage n.y., that included the Northrop corp. And the Ltd corp. The order for the Carrier base bombers May ultimately be Worth $45 Bil  search warrant request listed in formation obtained from government officials that was unavailable to the Public As a target in Mcdonnell Doug Las s St. Louis office. Investigators were looking for in formation relating to the advanced tac tical aircraft program including data on the Best and final offer on Price. Mcdonnell Douglas has asserted that All information pertaining to its bid was obtained  a memo to employees working on the program a senior company official said the team won the a-12 Competition fair and Square and we think by a Large , however in a purely hypothetical Case Mcdonnell Douglas is found Mohave obtained information illicitly the defense department could void the contract and reopen it for bidding a time consuming and costly  it could declare the Choice valid which could Lead Grumman and it partners to sue another time con suming and costly  Douglas could also be barred from further government work which would crimp deliveries of f-18 fighters to the Navy harrier jump jets to the Marine corps and f-15 fighters to the air  the Pentagon could punish Mcdonnell Douglas executives individually which would have less effect. Whatever happens if the Issue be came snagged in litigation even More time and Money would be , a delay of a year or More in executing the contract plus the loss of government and company Money Al ready spent is entirely  warning about possible weapons procurement gridlock Aspin leaned toward punishment with a letter to Secretary or defense Frank c. Car Lucci last week. He urged the Pentagon to hold up Fornix to eight weeks on issuing contracts for programs under a  must make Clear to the Public that we Are moving with Speed an firmness to protect the Public s interest and to assure that no firm can profit from ill gotten gain Aspin wrote