TSA FOLLIES: Report Finds Lavish Spending at TSA

[David Farber <dave () farber net>]

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From: "John F. McMullen" <johnmac13 () gmail com>
Date: October 14, 2004 5:58:16 PM GMT+01:00
To: johnmacsgroup () yahoogroups com
Cc: David Farber <dave () farber net>
Subject: TSA FOLLIES: Report Finds Lavish Spending at TSA
Reply-To: "John F. McMullen" <johnmac13 () gmail com>

From OSINT
---------- Forwarded message ----------
From: Bruce Tefft <btefft () community-research com>
Subject: [osint] TSA FOLLIES: Report Finds Lavish Spending at TSA

TSA FOLLIES: Report Finds Lavish Spending at TSA
By LESLIE MILLER

WASHINGTON - The government agency in charge of airport security spent
nearly a half-million dollars on an awards ceremony at a lavish hotel,
including $81,000 for plaques and $500 for cheese displays, according
to an internal report obtained by The Associated Press.

Awards were presented to 543 Transportation Security Administration
employees and 30 organizations, including a "lifetime achievement
award" for one worker with the 2-year-old agency. Almost $200,000 was
spent on travel and lodging for attendees.

The investigation by the Homeland Security Department's inspector
general, Clark Kent Ervin, also found the TSA gave its senior
executives bonuses averaging $16,000, higher than at any other federal
government agency, and failed to provide adequate justification in more
than a third of the 88 cases examined.

The report said lower-level employees were shortchanged, with a far
lower percentage receiving bonuses.

"A substantial inequity exists in TSA's performance recognition program
between executive and non-executive employees," the report said.

TSA spokeswoman Amy von Walter said the agency believes the bonuses and
party were justified "given the hours and productivity of the work
force during this critical period."

This year, said von Walter, the TSA will conduct awards ceremonies at
individual airports, as well as a much smaller and less expensive event
at its headquarters in November.

Congressional skeptics have criticized the TSA's hiring and spending
practices during its short existence. Republicans say the agency has
grown far larger than they envisioned when it was created following the
Sept. 11, 2001, attacks.

Ervin also is investigating why the agency's private recruiters worked
out of lush resort hotels with golf courses, pools and spas.

Sen. Byron Dorgan, D-N.D., said that he had not seen the full report
but that it indicated "a colossal waste of money."

"There's something terribly wrong with that agency," Dorgan said. "Of
all the agencies, that's the one that's supposed to be working
full-time against terrorist attacks."

The awards banquet, which cost $461,745, was held at the Grand Hyatt,
which bills itself as "one of the most magnificent" hotels in the
nation's capital. According to the report, the agency chose that site
because it was the only hotel available on Nov. 19, 2003, the agency's
second anniversary. It also was one of the few places that could
accommodate about 600 honorees and as many guests.

While the inspector general noted the agency sought competitive bids
for the party planner and chose the company with the lowest estimate,
it found the "costs of the ceremony and reception were higher than
necessary."

The event planning company, MarCom Group Inc. of Fairfax, Va., was paid
$85,552 for its work and given an additional $81,767 for plaques,
$5,196 for official photographs, $1,486 for three balloon arches and
$1,509 for signs.

The reception included finger food, coffee and cake that averaged $33
per person. Seven cakes cost a total of $1,850; three cheese displays,
$1,500.

In a written response, the TSA said the costs "were neither
extraordinary nor incurred without careful consideration of the amount,
the reasonableness of the cost, and value the activities would have to
the employees."

The inspector general also expressed concern that the TSA was more
generous than most other federal agencies in awarding bonuses to
executives. Federal agencies on average gave cash awards to 49 percent
of their executives in 2002, while 76 percent of TSA executives
received them in 2003.

The inspector general reviewed 88 employees' files and found that 38
percent "had no individual recommendation and justification for the
performance award."

"The legitimacy of such large awards is called into question by the
lack of an appropriate selection process and the reliance on
boilerplate justifications that could be applicable to anyone," the
report said.

The report also noted that fewer than 3 percent of nonexecutive
employees received bonuses in 2003.

In its response, the TSA said that executives who got a bonus didn't
get a pay increase and weren't eligible for a presidential awards
program that can amount to as much as 35 percent of their base pay. The
agency agreed, however, that more could be done to equalize treatment
of top executives and lower-level employees.

___

On the Net:

Transportation Security Administration: http://www.tsa.gov

Homeland Security Department Inspector General:
http://www.dhs.gov/dhspublic/display?theme89&content3309
--------------------------
Brooks Isoldi, editor
bisoldi () intellnet org
http://www.intellnet.org
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                           John F. McMullen
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