Statement from FedBid CEO Joe Jordan on USAF decision to lift suspension, not pursue debarment

FOR IMMEDIATE RELEASE: Feb. 23, 2015

CONTACT: Jonathan Swain
202-904-1958 or jonathan@14sts.com

VIENNA, VA – U.S. Air Force officials notified FedBid on Friday that they have removed the company from the Excluded Parties List System (EPLS) and the company is no longer suspended nor facing debarment proceedings. This decision is based on the terms of an administrative agreement signed between the company and USAF. Following is a statement from FedBid CEO Joe Jordan. 

“We appreciate U.S. Air Force officials moving expeditiously on their review and consideration. Through that process, FedBid was able to demonstrate that we took seriously their concerns and that we have taken substantive actions to address those concerns. We will continue to work with USAF, within the terms of our administrative agreement, to ensure the highest possible commitment to the integrity and transparency of our operations and our entire FedBid team. We look forward to continuing to provide an innovative online marketplace that helps both buyers and sellers achieve their goals through increased competition, transparency, and efficiency.” 

Background:

  • On Sept. 26, 2014, the Veterans Administration’s Office of Inspector General issued a report that outlined alleged actions taken by certain FedBid officials during the time period of 2010 to 2013.
  • FedBid’s Board of Directors appointed a special committee of three of its members to determine any response or actions the company should take related to the concerns raised in the report.
  • The special committee retained the law firm Arnold & Porter, LLP, as outside counsel to conduct a thorough and independent review of all matters related to the report, particularly of actions outlined in the report that were taken by certain FedBid employees or individuals acting on behalf of the company.
  • That review found no apparent violations of law or regulation by FedBid or its representatives.
  • However, it did raise concerns about the culture within FedBid during the time-period covered by the report, particularly how certain representatives and employees of FedBid handled third-party relationships.
  • Arnold & Porter, LLP, provided the special committee with a set of concrete recommendations to address these concerns.
  • FedBid implemented those recommendations, including a stronger ethics and compliance program and appointing a Chief Compliance Officer.
  • To date, all FedBid employees and board members have been counseled on and signed the revised Code of Business Ethics and Conduct.
  • Going forward any new employees, advisors and consultants FedBid may hire will also go through this training and sign this Code of Business Ethics and Conduct.
  • In addition, FedBid has created an Ethics and Compliance Steering Committee, which includes the Chief Compliance Officer and the CEO, with responsibility to oversee and implement changes in FedBid’s ethics and compliance program, policies and training.
  • FedBid appointed Joe Jordan CEO on Jan. 1.
  • On Feb. 5, FedBid accepted the resignation of former Chairman of the Board Ali Saadat.


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Released: February 23, 2015