Conflict of Interest and Violation of Contract Rules on a BLM Construction Project

The OIG investigated allegations that a contractor was improperly involved in a Bureau of Land Management (BLM) construction project and had a conflict of interest during multiple contract awards related to that project. We also investigated allegations that a BLM supervisor circumvented contracting rules to steer awards to the contractor. We confirmed the allegations against both the contractor and the BLM supervisor. We found that the contractor improperly contributed to the statements of work for contracts during the design phase of the project and influenced the award of those contracts. He then subcontracted with the companies that received the awards. We found that the BLM supervisor ignored guidance from BLM contracting personnel to compete the design phase of the construction and allowed the contractor to influence awards of contracts. When contracting personnel objected, the supervisor paid the contractor with a Government purchase card to circumvent controls. The United States Attorney’s Office for the District of Nevada declined prosecution of this matter and the BLM supervisor has left the Department.