Tuesday, June 28, 2005
"Duke" Cunningham's Buddy's Company Loses Pentagon Contract
Looks like the
A Pentagon spokesman said in a statement that the decision to cut off further awards for MZM under the 2002 contract, known as blanket purchase agreement, was because of a change in procurement law.
The Pentagon has ordered a halt in new work for MZM Inc., a (DC) defense and intelligence firm, under a contract that has brought the company $163 million in revenue during the past 2 1/2 years.
Rep. Randy "Duke" Cunningham (R-Calif.), a member of the House defense appropriations subcommittee, acknowledged last week that his relationship with MZM founder Mitchell J. Wade is being examined by federal authorities.
News reports earlier this month disclosed that Wade, MZM's founder and president, bought Cunningham's California home for $1.675 million in late 2003 and then sold it at a $700,000 loss. Cunningham also has been living on Mitchell's 42-foot yacht on the Potomac while in Washington. Cunningham said last week that he exercised "poor judgment" in the relationship, but he denied doing anything improper.
(Source: Washington Post Pentagon Ends New Work On D.C. Firm's Contract, June 28, 2005 [emphasis added.])