skills or do a job a different way, or produce on time. Other people, in well-meaning attempts to help us, erect barriers and roadblocks that only serve to impede progress. because they don't believe in it. Some people resist change These are the philosophical be lievers in the status quo, the people who cannot be convinced that Others resist change because they change will be an improvement. don't want success. We must have the support of everyone who believes in accountability and responsibility in government. However, there are people within and without the agency who, for various reasons, simply don't want to see us succeed. The only way we will succeed, the only way accountability and responsibility will prevail in the Federal government, is for those who are so quick to judge to come down and work to fight by our side, and see what it's like in the heat Then we will win. with us, of battle. Thank you. Senator CHILES. This will recess our hearings now to further call of the Chair. [Whereupon, at 1 p.m., the subcommittee recessed, to reconvene subject to the call of the Chair.] Over the past several months the United States Senate Subcommittee on Federal Spending Practices and Open Government has been inquiring into allegations of possible misconduct by certain companies in their handling of the General Services Administration (GSA) multiple award schedule program. It has recently come to the Subcommittee's attention that Digital Equipment Corporation was audited by the Inspector General's office of GSA, and several items surfaced which point to a possible area of concern with your company. You are invited to discuss this matter with the Subcommittee staff and to have the below listed individuals available to answer questions related to the multiple award schedule program, during the week of September 15, 1980. It is anticipated that the Subcommittee will hold open hearings on multiple awards within the next few weeks. Individuals requested for discussions with the staff are Peter A. Cerreta and Robert Huberfeld. Any questions may be directed to Pichard Polhemus of the Subcommittee staff at telephone number (202) 224-4067. LAWTON CHILES FifTÉGRAM' SERVICE CENTER MIDDLETOWN, VA. 22645 western union Mailgram 1 U.S. MAIL 1-021774C266002 09/22/80 ICS IPMNAWB WSH WSHA 10070 MGM NFWASHINGTON DC 2040 09-22 0602P EDT SEN LAWTON CHILES CHMN U.S. SENATE SUBCOMMITTEE ON PEDERAL SPENDING PRACTICES & OPEN 437 RUSSELL BLDG WASHINGTON DC 20510 SERVICE DEAR MR. OLSENI I UNDERSTAND THAT YOUR REPRESENTATIVE, ERIC R. POX, AS I DESCRIBED IN MY LETTER OF SEPTEMBER 9, 1980. 1. GSA AUDIT INTO THE ABOVE MENTIONED CONTRACT INCLUDING THE AUDIT PINDING AND RECOMMENDATIONS: A. DEFECTIVE PRICING EXTENDED DISCOUNTS NOT DISCLOSED, $2,475,507, B. DEFECTIVE PRICING COMPLETITIVE ALLOWANCES GIVEN, $1,015,4801 2. YOUR RESPONSE TO THE AUDIT, INCLUDING AFFIDAVITS FROM PETER A CERRETA AND ROBERT HUBERFELD. MY STAFF WOULD LIKE TO DISCUSS THE ABOVE WITH MR. CERRETA SINCERELY LAWTON CHILES CHAIRMAN U.S. SENATE SUBCOMMITTEE ON FEDERAL TO REPLY BY MAILGRAM, SEE I TOLL FREE PHONE NUMBERS 75-533 0-81-10 I am responding to your letter dated 18 September 1988 (received 16 September 1988) and mailgram of 22 September 1989 to Kenneth 2. Olsen, President of Digital Equipment Corporation ("Digital") inviting Digital personnel to discuss an audit conducted by the Inspector General's Office of the General Services Administration ("GSA"). The matter which was the subject of your invitation has been for some time, and remains, within the dispute resolution mechanism under appropriate GSA procedures. Counsel representing Digital in this contract dispute, Eric R. Fox, Esquire, has prepared the enclosed memorandum providing a summary of the nature of the dispute and its present status. We strongly believe that any discussion of these issues outside the formal ongoing administrative proceedings, particularly in the context of the Subcommittee's scheduled public hearings, would seriously and unfairly prejudice the ability of the parties properly to resolve this contract dispute in a timely and appropriate fashion. The Subcommittee inquiry concerning this specific matter would clearly have a chilling impact on the administrative due process. We hope you share our deep concern, specifically in view of the absence of sny compelling legislative urgency. It is our understanding that the Subcommittee was unaware of the administrative proceedings at the time you extended your invitation. Accordingly, we believe we must ask you to defer further consideration of this specific issue and to withdraw your invitation now that we have brought this matter to your attention. DIGITAL EGXUIPMENT CORPORATION, 11) POWDERMILL ROAD, MAYNARD, MASSACHUSETTS 01754 (617) 897-511I TWX. 710-347-0212 TELEX, 94-5457 After the administrative proceeding has been concluded, we would be pleased to cooperate with the Subcommittee with respect to any relevant issues of concern to it. In the meantime, we would be pleased to make Mr. Fox promptly available to you or your staff to answer any questions raised by the enclosed memorandum. Very truly yours, DIGITAL EQUIPMENT CORPORATION Edward # Schwartz Edward A. Schwartz Vice President and General Counsel EAS: LKW CC: Subcommittee Members DIGNAL EQUIPMENT CORPORATION |