Says Neither Political Affiliation Nor Views Should Be Factor
In Contracting Decisions

WASHINGTON – U.S. Rep. Benjamin L. Cardin, D-MD, today condemned Department of Housing and Urban Development Secretary Alphonso Jackson’s practice of refusing to award HUD contracts to qualified bidders because they don’t “like the President,” and called for a thorough review of all HUD contracts awarded during the Secretary’s tenure. 

The Congressman was prompted by a Dallas Business Journal article quoting Jackson as saying, “Why should I reward someone who doesn’t like the president, so they can use funds to try to campaign against the president?  Logic says they don’t get the contract. That’s the way I believe.”  Jackson reportedly canceled the contract of a minority publisher based on the bidder’s opinion of President Bush.  According to HUD’s web site, it awarded more than $1 billion in contracts in 2003, the most recent data published. 

“Secretary Jackson’s practices are offensive to business owners who apply for federal contracts.   It is wrong to award contracts to political friends while punishing political opponents.  The American taxpayers want contracting decisions to be based on merit, not political ideology,” said Rep. Cardin.

“The Bush Administration has spoken often about its commitment to increase opportunities for small businesses.  But his words are meaningless if, within his own administration, firms are selected for contracts based on the political leanings of their owners rather than on merit.” 

Rep. Cardin urged  the Inspector General to investigate whether the Secretary or any other HUD officials, particularly those responsible for awarding contracts, have sought or received information about the political contributions, activities, or views of persons competing for federal contracts, and what role if any that information played in the determination of awards.

(A copy of Rep. Cardin’s letter to the Inspector General is below.)

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May 11, 2006

The Honorable Kenneth M. Donohue
Inspector General
U.S. Department of Housing and Urban Development
451 Seventh Street,  S.W.
Washington, DC 20410

Dear General Donohue:

The Secretary of Housing and Urban Development has been quoted in the Dallas Business Journal as having established a policy that rewards federal contracts based on the bidder’s political views.
 
As the Representative from the Third Congressional District of Maryland, which encompasses Baltimore City and other areas that have benefitted from federal investment of HUD funds,   I am distressed to read the Secretary’s comments involving a specific bidder whose contract was canceled after he expressed his personal political views about President Bush.

I have enclosed the article for your information. This account raises very troubling questions about the fairness of the entire federal contracting process at the Department.  The American people deserve a full explanation of the events described by the Secretary, and I request that you give a full accounting of the circumstances that led to the initial awarding of the contract, its cancellation, and whether this contract was finally awarded in accordance with federal law.

In addition, I would ask that your office conduct a complete and thorough review of the HUD contracts that have been awarded since the beginning of Secretary Jackson’s tenure.

This review should focus on the following:

      1)  Have there been any communications between the White House and the Secretary or any department employees as to the party affiliation, political contributions, or political activities, or political views of applicants for HUD contracts?

      2)   Have officials responsible for the awarding of federal contracts received from any source, or are they in possession of,  any information as to the political affiliation, memberships, views,  of applicants for federal contracts?  

       3)  Do HUD officials responsible for the awarding of contracts track the activities or views of applicants for contracts?

       4) What is the official policy of the Department as to the awarding of federal contracts?
     
       5)  What protections are in place to ensure that contracts at HUD are awarded in accordance with federal procurement laws?

Thank you for your prompt attention to this matter.

                                                                                          Sincerely,

                                                                                          Benjamin L. Cardin
                                                                                          Member of Congress