Federal Reports

DOL-OIG Investigations Newsletter Volume XXXI for the period of October 1 - November 30, 2020

Memorandum for Department of Defense Lead Inspector General

During the COVID-19 pandemic, the Postal Service provided vital service, including the delivery of critical items such as medications, stimulus payments, and Social Security checks. Further, the Postal Service is the leading delivery service provider for online purchases. A May 2020 Harris Poll survey on America’s 100 essential companies’ responses to the COVID-19 pandemic, ranked the Postal Service as number one, based on its resolve, integrity, responsiveness, and permanence. Our objective was to evaluate mail service during the early stages of the novel coronavirus (COVID-19) disease pandemic.

On 27 March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance and healthcare response for individuals, families, and businesses affected by the Coronavirus disease. Section 3610 of the CARES Act provided agencies discretionary authority to reimburse costs of paid leave to federal contractors and subcontractors using existing appropriations to keep these individuals in a ready state and to protect the life and safety of government and contractor personnel. Given the unprecedented circumstances surrounding these Section 3610 authorities, including the potential risk to National Reconnaissance Office (NRO) programs as well as substantial funding outlays, the NRO Office of Inspector General conducted this evaluation. The objectives were to evaluate the NRO's implementation of Section 3610 of the CARES Act and to identify preliminary impacts to the NRO's mission. The OIG determined that the NRO used a multifaceted strategy consistent with Section 3610 and Office of Management and Budget guidance to ensure mission resilience while protecting the health and safety of the NRO contractor workforce. The OIG also identified potential impacts to the NRO's mission that could influence the efficiency and effectiveness of NRO's activities moving forward.

The OIG investigated an allegation that a company improperly billed hours in late 2018 and early 2019 to a grant it received from the National Fish and Wildlife Foundation (NFWF) to manage Hurricane Sandy coastal resiliency projects.We determined that five employees of the company recorded 561.75 labor hours to the NFWF grant when, in fact, they worked on a National Oceanic and Atmospheric Administration contract. We learned that the company corrected the improper billing and took administrative action against four employees before we initiated our investigation. The company did not charge the NFWF for the 561.75 labor hours; it, however, also never notified the NFWF of the problem.As a result of our investigative efforts, the company conducted a second review of the billing on the NFWF grant and determined that additional hours charged by three of its employees to the NFWF grant were inappropriate. The company subsequently reimbursed the NFWF $44,332.94. On October 14, 2020, the NFWF provided the company with a written notice terminating its grant agreement, effective 30 days from the date of the memo.

An Amtrak yard conductor based in Washington, DC, resigned from the company on December 31, 2020, prior to his administrative hearing. The former employee was administratively charged by Amtrak management for actions that brought discredit to the company. Our investigation found that the former employee had been indicted on state child molestation charges in June 2020. On December 15, 2020, the former employee was convicted of the charges and sentenced to 18 months in prison, one year home confinement, and five years’ probation.