Robosigning of HUD Contracts: And You Thought It Was Just The Banks

We have been investigating the United States Department of Housing and Urban Development‘s Awarding of Contracts dating back to the M&M II days under HMBI.  The Washington Post reported on the initial Award to HMBI and how HUD repeatedly dismissed concerns by Staff about the Contracts.  Does this sound familiar?  Yes it does as Foreclosurepedia has raised multiple issues about the legality of the implementation of HUD M&M 3.6 by PK Management.

Federal investigators are still sorting through [18MAY2008] HUD contract awards to friends of Secretary Alphonso Jackson, who resigned last month amid a criminal probe. But some career staff members and agency observers say problems in the agency’s contracting process run much deeper than Jackson and involve officials who promoted certain companies while rebuffing concerns about their performance and qualifications.

The contract awards that staff members questioned took place within programs, heavily promoted by Jackson, to help small, minority-owned businesses get a bigger share of the roughly $1 billion in public contracts HUD awards each year. During Jackson’s tenure, the proportion of contracts awarded to small black- and Hispanic-owned businesses, including under the Section 8(a) program, rose from 6 percent to nearly 35 percent. The proportion of contracts open to full competition decreased from 71 percent to 33 percent, federal records show.

So, we started digging.  Bear in mind this is just the tip of the iceburg!  We began with HUD M&M III which is what this series is addressing.  Folks, if there is not a criminal indictment by the time we finish our Series I will be amazed.  These people are not bankers whom are protected!  HUD, between 21 September and 23 September 2011 executed tens of millions of dollars of Contracts (all Contracts beginning with C-OPC) without allowing for Fair Opportunity for Bidding under FAR 16.505.

Now, The Part 1 Justification is novel:

The agency need for the supplies or services is so urgent that providing a fair opportunity would result in unacceptable delays. (FAR 16.505(b)(2)(i)(A)).

Let me get this straight:  “…so urgent…” that what?  The law could not be obeyed?  So urgent that what?  The sky would fall?  So urgent that … ah, the money would stop flowing perhaps?!  Never in all my life other than what transpired with the banks have I witnessed such a dereliction of duty (I would love to put what I think here, but I am waiting on a FOIA request for travel logs) at minimum and conspiracy at worst.

More on point, though, is the Part 2 wherein the fact that the tens of millions of dollars which would normally require the “Head of the Contracting Activity or Designee” signature is avoided by breaking the Contracts down in singular filings.  Make no mistake that Paragraph Five (05) on EACH DAMN 505 demands that “The subject proposed order should be limited to the following contractor.”  You mean to tell me NOWHERE in the f*cking United States of America was there another Contractor capable of typing some forms (or doctoring them as the HUD OIG reported).  Son, this is how it started in Nazi Germany.  That, in and of itself, should give the Cleveland Clan time to take pause!

The aforementioned isn’t even the kicker!  Pay close attention in the the C-OPC Contracts.  First, Craig Karnes’ signature is IDENTICAL across the span of 15 Contracts!  He is the Director of the M&M Acquisition Center at the time.  Also, the errors in his date are IDENTICAL!  Next, the Director of Single Family Asset Management Ivery W. Himes’ signature and date are IDENTICAL and yet signed a day earlier.  Finally, Frederick P Graves, Competition Advocate, has an identical signature a day after Karnes signed.  Digging deeper, we find that over the course of three (03) days the date/time stamp for the fax never changes!!!!  Did I mention the Cliff Notes in the bottom right hand corner are identical?!

We reached out to Craig Karnes for comment and explanation and have not heard back as of the writing of this Article.  We are hoping that he or HUD’s General Counsel might be able to assist us in understanding how tens of millions of dollars of Contracts can be executed by robosigning, ahem perhaps it is boilerplate signatures kept on file for occasions, when Exemptions To Fair Access To Bid on Government Contracts happen.

Any forensic expert will tell you the statistical chance of identical signatures across 15 separate occasions is ZERO!  I don’t know folks.  We have already seen how HUD and the Department of Veterans Affairs and Prime Vendors have laughed at the African Americans in the Southeast over monies owed.  We have seen HUD turn its back on an African American women fired by Sentinel Field Services for contacting HUD over Contract concerns — It doesn’t get much closer to whistle blowing than that!  What we are witnessing is the systematic break down of government; the co-opting of HUD by and through subversive means in my opinion!

Anyone reading this needs to forward the Article to their Senator and Congressperson at both the State and Federal levels and request a formal Congressional Inquiry.  Most legislative assistants will do this immediately as you are a constituent and being impacted by monopolization under US Government Contracts.  Tell them to review the Categories:  PPMS, Raines, PK Management, and NAMFS.  Do not put it off.  Monday morning pick up your phone and send the email.  We also request that you forward copies so that we may begin to monitor the progress.

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