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Yahoo
10 minutes ago
- Yahoo
How the unraveling of two Pentagon projects may result in a costly do-over
By Alexandra Alper WASHINGTON (Reuters) -Donald Trump's Navy and Air Force are poised to cancel two nearly complete software projects that took 12 years and well over $800 million combined to develop, work initially aimed at overhauling antiquated human resources systems. The reason for the unusual move: officials at those departments, who have so far put the existing projects on hold, want other firms, including Salesforce and billionaire Peter Thiel's Palantir, to have a chance to win similar projects, which could amount to a costly do-over, according to seven sources familiar with the matter. Trump took office vowing to rid the government of what he calls waste and abuse. The website of the Department of Government Efficiency, the agency he created to spearhead those efforts, lists over $14 billion in Defense Department contracts it claims to have cancelled. But seven months into his presidency, some of his own actions have complicated DOGE's work, from firing the Pentagon's inspector general to issuing an executive order prioritizing speed and risk-taking in defense acquisitions. Coupled with high-level vacancies in the Navy and Air Force that persisted well into the summer, the moves limit oversight of the Pentagon's contracting process and risk wasting hundreds of millions of additional taxpayer dollars as old projects are thrown out and new projects are agreed to, Reuters reporting based on sources, internal emails and documents, shows. 'There is a very real sense that we are in the regulatory Wild West with this administration – and it should come as no surprise that the traditional limits of 'normal contracting' are repeatedly going to be pushed and pressed in this environment,' said Franklin Turner, a federal contracting lawyer at McCarter & English. He said it is legal for the government to terminate any contract "for convenience," but said the Pentagon would be on the hook to reimburse the companies for wind-down costs plus take on the cost of any new replacement project. Trump officials say the administration is striving to make the contracting process more efficient. "Defense Secretary Hegseth is doing a great job restoring a focus on warfighters at the DOD while carrying out the American people's agenda to more effectively steward taxpayer dollars," White House Deputy Press Secretary Anna Kelly said in a statement. Pentagon Press Secretary Kingsley Wilson said the agency is taking "swift action" to fix the "antiquated" defense contracting process by implementing Trump's executive orders. "This is how we will rebuild the military with necessary speed while ensuring taxpayer dollars are spent wisely in the process,' she added. 'STRATEGIC PAUSE' In 2019, Accenture said it had won a contract to expand an HR platform to modernize the payroll, absence management, and other HR functions for the Air Force with Oracle software. The project, which includes other vendors and was later expanded to include Space Force, grew to cost $368 million and was scheduled for its first deployment this summer at the Air Force Academy. An April "status update" on the project conducted by the Air Force and obtained by Reuters described the project as "on track," with initial deployment scheduled for June, noting that it would end up saving the Air Force $39 million annually by allowing it to stop using an older system. But on May 30, Darlene Costello, then-Acting assistant Secretary of the Air Force, sent out a memo placing a "strategic pause" on the project for ninety days and calling for the study of alternate technical solutions, according to a copy of the memo seen by Reuters that was previously unreported. Costello, who has since retired, was reacting to pressure from other Air Force officials who wanted to steer a new HR project to SalesForce and Palantir , three sources said. Palantir co-founder Thiel was an early backer of President Donald Trump and has close ties with key Washington lawmakers, including Vice President JD Vance, whom he supported in a 2022 U.S. Senate race. Palantir in April won a $30 million contract from the U.S. Immigration and Customs Enforcement to develop an operating system that identifies undocumented immigrants and tracks self-deportations, its largest single award from the agency among 46 federal contract actions since 2011. The Air Force said in a statement that it "is committed to reforming acquisition practices, assessing the acquisition workforce, and identifying opportunities to improve major defense acquisition programs." Accenture, Costello, Palantir and SalesForce did not respond to requests for comment. Space Force, which operates within the Air Force, was set to receive the Air Force's new payroll system in the coming months. But it is also pulling out of the project because officials there want to launch yet another HR platform project to be led by Workday, according to three people familiar with the matter. The service put out a small business tender on May 7 for firms to research HR platform alternatives, with the goal of selecting a company that will recommend Workday as the best option, the people said. Space Force did not respond to multiple requests for comment. Now the Air Force and Space Force "want to start over with vendors that do not meet their requirements, leading to significant duplication and massive costs," said John Weiler, director of the Information Technology Acquisition Advisory Council, a government-chartered nonprofit group that makes recommendations to improve federal IT contracting. Oracle said in a statement it was "working closely with DOGE to accelerate the government's transformation to modern technology at the best price for the taxpayer." 'BEYOND EXASPERATED' In 2022, the Honolulu-based Nakupuna Companies took over a 2019 project with other firms to integrate the Navy's payroll and personnel systems into one platform using Oracle software and known as "NP2". The project, which has cost about $425 million since 2023, according to the Government Accountability Office, was set to be rolled out earlier this year after receiving a positive review by independent reviewer and consulting firm Guidehouse in January, according to a copy obtained by Reuters. But the head of Navy's human resources, now retired Admiral Rick Cheeseman, sought to cancel the project according to a June 5 memo seen by Reuters, directing another official to "take appropriate contractual actions" to cancel the project. Navy leaders instead mandated yet another assessment of project, according to a memo seen by Reuters, leaving it in limbo, two sources said. Cheeseman's reason for trying to kill the project was his anger over a decision by DOGE earlier this year to cancel a $171 million contract for data services provider Pantheon Data that essentially duplicated parts of the HR project. In an email obtained by Reuters, he threatened to withhold funding from the Nakupuna-led project unless the Pantheon contract was restored. "I am beyond exasperated with how this happened," Cheeseman wrote in a May 7 email to Chief Information Officer Jane Rathbun about the contract cancellation, arguing the Pantheon contract was not "duplicative of any effort." "From where I sit, I'm content taking every dime away from NP2 in order to continue this effort," he added in the email. Cheeseman did not respond to a request for comment. Rathbun and Pantheon Data declined to comment. The pausing of NP2 was "unexpected, especially given that multiple comprehensive reviews validated the technical solution as the fastest and most affordable approach," Nakupuna said in a statement, adding it was disappointed by the change because the project was ready to deploy. The Navy said it "continues to prioritize essential personnel resources in support of efforts to strengthen military readiness through fiscal responsibility and departmental efficiency." Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
The Hill
11 minutes ago
- The Hill
Progressives make inroads in key mayor's races
Progressives are making inroads in big-city mayoral races, giving the left flank a new shot in the arm as the Democratic Party faces an internal struggle over its future. Seattle community activist Katie Wilson surprised some political observers last week in finishing ahead of incumbent Mayor Bruce Harrell (D) in a nonpartisan blanket primary. Though Harrell, who is more moderate, will have the opportunity to win reelection to a second term in November, Wilson is currently almost 10 points ahead of him in the primary results, as of the latest vote count. Coming in the aftermath of Zohran Mamdani's upset win in the New York City Democratic primary and as a left-wing challenger hopes to oust the current Minneapolis mayor, progressives are hoping it's a sign of the tide turning in their favor. 'Our hope is that there's a real moment for progressives, for folks who want to see change or are upset with the status quo,' said Alex Gallo-Brown, Wilson's campaign manager in an interview. The Democratic Party has spent months reevaluating its future in the aftermath of its losses last November and figuring out its direction ahead of the midterms. The party has experienced a battle for at least the past decade between its progressive and moderate wings for control of the party and the message pitched to voters. Finger-pointing followed former Vice President Harris's loss in 2024, with progressives getting blame from more moderate Democrats for contributing to a perception of the party as too far left. Coupled with some high-profile defeats for progressive candidates in key congressional and local races in 2024, the progressive wing didn't appear to be in a strong position entering this year. But progressives are much more optimistic now following results in some of the mayoral elections taking place this year in large cities. The first and biggest victory yet came with the surprise win from Mamdani, a New York State Assembly member backed by Democratic Socialists of America (DSA), in the primary over former Gov. Andrew Cuomo, who touted progressive accomplishments while in office but ran as a moderate. Most public and even Mamdani-aligned polling didn't show him leading ahead of the primary, but he outperformed expectations to win comfortably by double digits in the final round of the city's ranked-choice tabulation. Meanwhile, another DSA-backed candidate is seeking to gain momentum in Minneapolis after winning the city party's endorsement. Minnesota state Sen. Omar Fateh (D) won the endorsement last month over Mayor Jacob Frey (D), who is seeking his third term in office. Though Frey is filing an appeal to the decision over what he argues was a flawed process, after significant technological issues, the development nonetheless underscores the proxy battle taking place in the city's election. 'This endorsement is a message that Minneapolis residents are done with broken promises, vetoes, and politics as usual,' Fateh said in a post on X at the time. 'It's a mandate to build a city that works for all of us.' Most recently, Wilson took observers by surprise by finishing ahead of Harrell in the Seattle mayoral primary with about 51 percent of the vote to 41.4 percent for the incumbent mayor. The candidates will face off again in the November general election. Issues of affordability and public safety are playing key roles in the contest, as is the case for other large cities. Harrell has touted declining violent crime rates during his time as mayor and has pushed for increased hiring for the city's police force. Wilson, who previously expressed sympathy for the 'defund the police' movement but hasn't called for it during her campaign, has criticized Harrell over rising costs of living and housing affordability, while arguing that armed officers aren't needed to respond to mental health and other non-crime calls they receive. Gallo-Brown cast doubt on how much the public cares about 'labels' as opposed to who will find solutions to their problems. 'A lot of people, they kind of look at the Democratic Party or certain parts of it, and it's just business as usual,' he said. 'And so I think people like Katie, like Zohran, like other mayoral candidates around the country are showing people that another world is possible.' Harrell told The Hill in an interview that he wasn't surprised by the results given the 'angst' that voters expressed while his campaign conducted field work. He said he needs to remind voters that he's been a 'change agent' and helped turn the city around from the place it was in when he first took office, a time when the city was still coming out of the COVID-19 pandemic and facing much higher levels of crime. 'You don't want to sacrifice a proven leader, just because there's impressive-sounding rhetoric that seems to excite people,' he said. 'The rhetoric will not get change done. It's people who are capable and have done the work.' Some Democrats tempered expectations for the progressive challengers and argued that Minneapolis and Seattle's races aren't as directly comparable to New York City's. Corey Day, a former executive director of the Minnesota Democratic-Farmer-Labor Party, pointed to the controversy surrounding the process that resulted in Fateh's endorsement and Frey's appeal, which could change the city party's decision. He also said he doesn't believe the endorsement will be as critical to determining the winner as it would be for some city council races. Day called Fateh's candidacy a 'significant challenge' to Frey but said he expects the incumbent to make clear their differences ahead of November. The election will be conducted by a ranked-choice process in which all candidates for the office compete on the same ballot. The race doesn't have a primary, so no results on where voters stand will be available until the election happens. Frey also doesn't have the controversies that Mamdani's chief opponent, Cuomo, had to overcome in the New York race. 'Once both of these candidates are spotlighted, and I think when they start talking about their policies and their records, it's going to be pretty clear for voters that Jacob Frey is their choice,' Day said, arguing that Frey has also established his progressive bona fides. Ashik Siddique, a DSA co-chair, said voters are excited from candidates who show they're willing to fight for working class voters, and these types of candidates can win even outside these cities if they hone their message and have discipline. 'People are very motivated to see people like Zohran and Omar and others all over the country really standing up for clear economic demands that will address the ways people feel their day to day lives are getting worse, but also being able to confront the [Trump] administration when it's scapegoating people,' he said. DSA enthusiasm was on full display at its national convention this month following Mamdani's win. DSA isn't involved in the Seattle mayor's race, and Wilson hasn't run as a democratic socialist, but the race is still another example of progressives feeling bullish. Washington state Democratic strategist Ron Dotzauer said he expects the general election turnout to be much higher than that of the primary was, changing the electorate. He said the low turnout favored Wilson's constituency and other more liberal candidates. Dotzauer said Wilson's constituency is 'ironclad,' so the onus will be on Harrell to capitalize on the increased voter turnout. 2024 Election Coverage 'There's a scenario for each of them to win, and I think it's going to be very, very close,' he said. Harrell also argued that he has shown his progressive values in fighting to raise the minimum wage, setting an 'aggressive' climate policy and raising taxes on the largest businesses. He also pointed to a key endorsement he received from Rep. Pramila Jayapal (D-Wash.), a former chair of the Congressional Progressive Caucus. 'When people start calling people names or labeling them, they're not really looking at the hard work that's been achieved,' he said. 'And again, I'll that story during the general, but I think that should resonate in the minds of most voters.'
The Hill
11 minutes ago
- The Hill
Trump wields funding card in fight with DC
Republicans are embracing President Trump's bare-knuckled fight with Washington, D.C., as a winning issue for the embattled president and say that Trump will use federal funding for the city as leverage to get Mayor Muriel Bowser and the City Council to crack down on local crime. Conservatives on Capitol Hill are calling for Congress to end the District of Columbia's era of home rule and federalize the city, something that has little chance of happening since legislation to do so would need 60 votes and the support of at least seven Democrats to pass the Senate. Trump and his Republican allies in Congress, however, could extract significant concessions from the mayor and City Council in return for critical funding, as a proposal to restore more than $1 billion in funding for Washington remains stalled in the GOP-controlled House. Republican aides say that one of Trump's top priorities would be to press D.C. to eliminate no-cash bail, a policy whereby individuals arrested on criminal charges do not need to post cash bonds to avoid pretrial detention. Other priorities would be to prosecute teenagers accused of serious crimes as adults and to implement stricter policies mandating pretrial detention of adults and teenagers accused of such crimes. Some Republicans on Capitol Hill, including Sen. Mike Lee (Utah) and Rep. Andy Ogles (Tenn.), are pushing for more drastic action. They are backing legislation to repeal the 1973 District of Columbia Home Rule Act, which gives the city the right to elect its own government and manage local affairs. Lee in an op-ed for The Spectator cited several high-profile attacks, including the fatal shooting of congressional intern Eric Tarpinian-Jachym in July and the 2023 knife attack that left a staffer for Sen. Rand Paul (R-Ky.) with a punctured lung and penetrated skull. 'This isn't just a local issue — it's a national embarrassment, and the Constitution itself makes it a national issue. Federal oversight will restore order and make DC a model city again,' Lee posted on the social platform X. Sen. Roger Marshall (R-Kan.) in an interview on Fox Business applauded Trump's takeover of D.C.'s police and predicted: 'If there's a significant law enforcement presence, these crimes are going to go down.' He said a car belonging to one of his staffers got shot up in a gang fight while it was parked six blocks from the Capitol. 'We spent one of our Steering Committee meetings talking about what we should get our employees to protect themselves when they're walking home. This is our nation's capital, for crying out loud. This is where you bring your family, and you become a patriot, and it's not safe to be here,' he said. 'I'm saluting President Trump. More power to him to do whatever it takes to secure our nation's capital.' Sen. Rick Scott (R-Fla.), the chair of the Senate Steering Committee, told reporters Tuesday he hoped Democratic mayors from major cities would follow Trump's lead and increase law-enforcement activities. 'I'm optimistic this will show D.C. you can have safety,' he said. 'The first thing I say to everybody when they're coming to D.C. is, 'You better think about where you're staying, you've got to think about every street you're on, you've got to think about you can't be out at night.' Hopefully that will change.' Early polling is mixed on Trump's takeover of the capital's police department and plan to deploy 800 National Guard troops, along with dozens of FBI agents, to step up law enforcement activity around the city. An Aug. 11 YouGov survey of 3,180 U.S. adults found that 47 percent of respondents strongly or somewhat disapproved of Trump's actions, while 34 percent strongly or somewhat approved. But the poll also found that 67 of respondents said that crime in large American cities is a 'major problem' while 23 percent described it as a 'minor problem.' Focusing on crime in Democratic-run cities has been a successful political tactic for the president going back to his first term and comes at a time when his approval rating has sunk to 37 percent, according to a recent Gallup poll. Democratic lawmakers slammed Trump's action. Senate Judiciary Committee ranking member Dick Durbin (D-Ill.) asserted 'there are currently no 'special conditions of an emergency nature' in D.C., which the president has to claim in order to take federal control of MPD under the Home Rule Act.' 'This is unprecedented,' he said. Jim McLaughlin, a Republican pollster who has done work for Trump, said that Trump's takeover of the police force and deployment of National Guard is a popular move but argued it's not motivated by politics. 'He's doing it because he thinks it's really important to keep people safe,' he said, noting that crime and law enforcement in major cities was an issue that Trump identified as a top priority when he was thinking about running years before the 2016 presidential election. 'I know there are a lot of people looking at the political angle here, but it's not politics, it's about doing what he thinks is right,' McLaughlin said. 'D.C. is a special place. We have people not just from all over the country but all over the world come to visit D.C., and they should be safe there. 'We've got members of Congress and their staff getting attacked there,' he said, referring to the assault on Rep. Angie Craig (D-Minn.) in 2023. Trump will have an opportunity to press his demands ahead of next month's government funding deadline, Sept. 30, when Democrats in Congress and advocates for the District will call for the restoration of the funding held back in the March funding deal. 'I can see that being an anomaly in a [continuing resolution],' said a Republican strategist, who suggested that Trump could also request more federal oversight of Washington's Metropolitan Police Department (MPD) in exchange for funding to hire more police. 'You're working within the confines with what will probably be a' continuing resolution, the strategist said of the expectation that Congress will need to pass a stopgap funding measure to avoid a government shutdown. 'You could do it via a handshake agreement,' the strategist added, referring to concessions Bowser would make in exchange for more federal funding. Bowser 'already opened the door' to a potential deal with the White House, the strategist noted, by acknowledging in a recent statement that beefing up policing in some parts of the city could be a good idea. Bowser at a press conference Monday acknowledged that 'we experienced a crime spike post-COVID' but argued 'we worked quickly to put laws in place and tactics that got violent offenders off our streets and gave our police officers more tools, which is why we've seen a huge decrease in crime.' The mayor pointed out that crime is down compared with 2023 but pledged: 'We're not satisfied, we haven't taken our foot off the gas, and we continue to look for ways to make our city safer.' Bowser met with Attorney General Pam Bondi on Tuesday, a meeting that Bondi called 'productive.' 'I just concluded a productive meeting with DC Mayor Bowser at the Department of Justice. We agreed that there is nothing more important than keeping residents and tourists in Washington, DC, safe from deadly crime,' Bondi posted on social media. Trump on Monday vented his frustrations over no-cash bail and what he views as the lenient treatment of teenagers accused of felony crimes. 'Every place in the country where you have no-cash bail is a disaster,' Trump declared at a White House press conference where he announced a federal takeover of D.C.'s police department and the deployment of 800 National Guard troops to the city's streets. The president called for the District to change its laws to allow for teenagers 14 and older to be prosecuted as adults, complaining of juvenile offenders: 'They are not afraid of Law Enforcement because they know nothing ever happens to them, but it's going to happen now!'
