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WorldCom Inc. (Washington Insider).

The General Accounting Office sidestepped a decision on a protest over a contracted awarded to the bankrupt telecommunications company WorldCom Inc., even though it found that the company presented "grossly inaccurate financial information" in connection with its bid.

WorldCom was awarded the Defense Research and Engineering Network Contract by the Defense Information Systems Agency in April.

In June the company acknowledged improper accounting of almost $4 billion and soon filed for bankruptcy protection. Three former executives have pleaded guilty to criminal charges in connection with the fraud and the company's former chief financial officer has been indicted, but denies wrongdoing.

Losing bidders Sprint and Global Crossing protested that WorldCom was found to be a responsible contractor on the basis of false financial data.

GAO General Counsel Anthony Gamboa wrote that since the data was not included in the company's proposal, GAO has no jurisdiction. He said it is up to DISA to decide whether to cancel the contract.
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Publication:Set-Aside Alert
Date:Oct 18, 2002
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