Changes Spurred Buying, Abuses

"I am committing to you here today that we are going to fix these pesky issues," Doan told a group of GSA contractors days after taking office.

By Aug. 14, 2006, negotiations between the GSA and Sun were deadlocked, according to interviews, congressional testimony, correspondence and a staff memo by investigators for Rep. Henry A. Waxman (D-Calif.), now chairman of the House Oversight and Government Reform Committee.

Mike Butterfield, the new contracting officer, gave what is termed an "impasse briefing" to senior GSA officials, including James A. Williams, who oversees the schedule program.

Williams was given a fact sheet that estimated Sun had overcharged the government as much as $77 million over a six-year period, according to the Waxman memo.

The fact sheet said that accepting Sun's latest terms could result in the loss of another $14.4 million.

Grassley later wrote a letter to Williams questioning the GSA official about his involvement in the Sun contract and his attitude toward the deal: "At this point, you reportedly stated: 'This is a bad deal. . . . We should not go forward with this contract' or words to that effect."

On Sunday, Aug. 27, one of Williams's deputies forwarded an e-mail to Doan telling her that the contract was likely to be terminated. Doan replied three minutes later: "This is truly unfortunate" and said there would be "serious consequences" in lost business for her agency, according to the Waxman memo.

Williams and Doan later told lawmakers that they discussed the fact that Sun could sell its products to the government through another, smaller federal buying program run by the National Aeronautics and Space Administration. NASA would then collect the fees, rather than the GSA.

Two days later, Doan told the inspector general, whose auditors had turned up the evidence of pricing problems, that it was essential for the GSA to sign the contract with Sun, according to Waxman's memo. Butterfield, the contracting officer, continued to balk.

On Aug. 31, Williams had a conversation with Butterfield about the contract, expressing an apparent shift from his view two weeks earlier. Butterfield later told congressional investigators that Williams said: "Lurita wants this contract awarded. I want it awarded."

In an interview with The Post, Williams said he did not recall saying "I want it awarded." He said he urged contracting officials to continue negotiating for the best deal for taxpayers after Sun expressed a willingness to provide concessions. Williams said he had no role in the final decision.

At the time of their conversation, Williams asked Butterfield if he wanted to continue working on the contract. Butterfield declined, he later told congressional investigators. Hours later, a new contracting officer, Shana Budd, was assigned to replace Butterfield.