Kate Sheppard

Kate Sheppard

Reporter

Kate Sheppard is a staff reporter in Mother Jones' Washington bureau. She was previously the political reporter for Grist and a writing fellow at The American Prospect. She can be reached by email at ksheppard (at) motherjones (dot) com.

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Her work has also been featured in the New York Times' Room for Debate blog, the Guardian's Comment Is Free, Foreign Policy, High Country News, The Center for Public Integrity, the Washington Independent, Washington Spectator, Who Runs Gov, In These Times, and Bitch. She was raised on a vegetable farm in southern New Jersey (yes, they do exist), but has adapted well to life in the nation's capital. She misses trees and having a congressional representative with voting power, but thinks DC is pretty great anyway.

10 Corporations That Still Get New Government Contracts, Despite Alleged Misconduct

| Fri Nov. 30, 2012 12:12 PM PST

The EPA surprised quite a few people on Wednesday when it announced sanctions on BP related to the 2010 Deepwater Horizon disaster. BP won't be allowed to get any new government contracts until it cleans up its act, the agency said.

This was announced in a short press release that wasn't really very specific about what that penalty means in practice. It could bar the company from new contracts for as long as 18 months—and potentially longer, if there are ongoing legal proceedings against the company. And it's not just BP's Gulf of Mexico affiliate—this suspension applies to all of BP's affiliates, barring the company from billions of dollars in potential future contracts.

This has been a long-time coming for BP. As a ProPublica piece from May 2010 noted, the company was already in trouble before spill:

Over the past 10 years, BP has paid tens of millions of dollars in fines and been implicated in four separate instances of criminal misconduct that could have prompted this far more serious action. Until now, the company's executives and their lawyers have fended off such a penalty by promising that BP would change its ways.

But many companies with federal contracts have been cited for misconduct. Apparently you just have to be really, really bad—like, 26-people-dead, Gulf-ecosystem-destroyed, lying-to-Congress bad—in order to get barred like BP did. The government regularly blocks companies from getting new contracts; there were 5,838 suspensions, proposed debarments, and debarments in 2011, an increase over previous years, but most of them are much smaller companies. 

The Project on Government Oversight (POGO) maintains a database of contractors that have been cited for misconduct, including environmental, labor, and financial legal violations. But as POGO points out, "very few large contractors have been suspended or debarred over the years." BP tops the list with 62 instances of misconduct or alleged misconduct since 1995, but here are the ten other big companies right behind BP that are still allowed to obtain government contracts:

  1. Exxon Mobil, 59 instances of alleged misconduct
  2. Lockheed Martin, 58 instances
  3. Boeing Company, 46 instances
  4. General Electric, 44 instances
  5. Honeywell International, 41 instances
  6. ChevronTexaco Corporation, 37 instances
  7. Northrop Grumman, 35 instances
  8. Fluor Corporation, 34 instances
  9. Royal Dutch Shell PLC, 34 instances
  10. GlaxoSmithKline, 33 instances

 

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Will BP Really Be Banned from Federal Contracts?

| Fri Nov. 30, 2012 10:12 AM PST

There are several interesting things to note following Wednesday's announcement that BP has been barred from new federal contracts. First, the Department of Interior announced that the oil giant is also barred from obtaining new leases "unless and until" it resolves the issues that got it barred from contracts.

But as Rena Steinzor, a professor of law at the University of Maryland and the president of the Center for Progressive Reform, points out, BP just won 43 new leases in the Gulf of Mexico in June. And in September, BP got $1.38 billion in new Department of Defense contracts. The debarment doesn't affect current leases. The DOD is the primary agency contracting with BP, and BP was its largest fuel supplier last year. And while DOD has said it doesn't plan to apply for a waiver from the debarment, either the agency or BP could still find ways of getting around it, writes Steinzor:

As DOD’s silence implies, the real question here is what will happen next. Under the law, a temporary debarment imposed without the company's consent cannot exceed 30 days. BP must be given the opportunity to rebut the charges and can challenge any final decision in court. Although some courts have concluded that parties do not have any right to do business with the government, others have said that contractors have a "liberty interest" in continuing to do business with the government unless they are cut off for "just cause," meaning that EPA will be compelled to explain itself quite thoroughly if the matter is litigated.
Even more disturbing, individual government agencies and departments may also waive debarment and do business with banned companies for "compelling reasons," a term every bit as loose and loophole-riddled as it sounds. If DOD goes this route and the President doesn’t back EPA, even this temporary debarment will vaporize as quickly as it materialized. There can be little doubt that BP lawyers have pitched a tent outside the office of the Defense Logistics Agency employee in charge of its case file.

The EPA's move to block BP from new contracts is laudable, but it might not be the final word.

Your Couch May Be Killing You

| Thu Nov. 29, 2012 4:08 AM PST

It's not your imagination, or a bad trip: Your couch could be trying to kill you.

A new study in the journal Environmental Science and Technology found that 85 percent of the sofas researchers tested contained flame-retardant chemicals that have been identified as carcinogens and potential neurotoxins. The stats were even worse for newer couches—those made after 2005: 93 percent of those contained chemicals that were either confirmed toxic or had not yet been tested adequately enough to know if they pose a risk. The chemicals accounted for as much as 11 percent of the weight of the foam in the cushions, they found.

Manufacturers use 3.4 billion pounds of flame-retardant chemicals in couches, insulation, carpet padding, and electronics every year to, in theory, prevent them from catching fire. But studies have found that the chemicals aren't actually effective and only make the fumes from fires more toxic.

"Petty much everyone in the country with a couch or a chair with foam have as much as a pound of a chemical like DDT or PCB in their home," Dr. Arlene Blum, the executive director of the Green Science Policy Institute and a coauthor of the paper, told Mother Jones. "Most people think the government protects them, and that if something's in their couch it must be safe." (Blum's flame retardant work was the subject of an excellent New York Times profile in September.)

Twenty-four percent of the sofas tested positive for chlorinated Tris, a carcinogen banned from children's clothing back in the 1970s. While no longer in baby clothes, the chemical is still relatively common in mattresses and car seats and, as this study found, your couch. The researchers also found that some of the 102 couches they tested contained PentaBDE, a chemical that the United States phased out in 2004 because, as the EPA said, the chemicals are "persistent, bioaccumulative, and toxic to both humans and the environment." But as the researchers note, most people keep their couches for an average of 15 years, meaning the older couches are still in many people's homes.

The real problem is that the chemicals don't stay in your couch. They end up in dust and air in your house, which is particularly problematic for children that crawl around on the floor. And for you, too, if you spend a lot of time on your couch or crawling around on your floor.

The researchers also note that it's hard to tell if your couch contains these chemicals. If it has a label noting that it meets California's standards for flammability of upholstered furniture—that it can resist bursting into flames for 12 seconds—then it most likely does have a bunch of chemicals in it. But 60 percent of the couches they tested that didn't have those labels still contained the chemicals.

All of this raises interesting questions about what you should do with your couch. Blum tossed her chemical-laden furniture years ago, when she found out that she had 93 parts per million of toxic chemicals in her home, which was pretty high. After four years without the toxic furniture, she's is now down to 3 parts per million. The Green Science Policy Institute's primer on "cancer-free couches" is a useful place to start if you want to know more.

EPA Blocks New Gov't Contracts for BP

| Wed Nov. 28, 2012 11:04 AM PST

The Environmental Protection Agency announced on Wednesday that it has temporarily barred BP and all its affiliates from new government contracts. This is significant news, as it comes at the heels of BP's settlement with the Department of Justice over criminal charges related to the Deepwater Horizon oil disaster. One of the criticisms of the settlement was that it did not include penalties for the company beyond the $4.5 billion fine.

The EPA's announcement was a bit of a surprise. The agency said in a press release that the prohibition on new contracts is in response to BP's "lack of business integrity as demonstrated by the company's conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response." That included neglect and misconduct that led to the death of 11 rig workers, and lying to Congress and shareholders about the extent of the damage from the spill.

The company will be barred from obtaining new contracts "until the company can provide sufficient evidence to EPA demonstrating that it meets Federal business standards." The company will, however, maintain its current contracts with the government. The Wall Street Journal reported during the 2010 spill that BP was "the single biggest supplier of fuel to the Department of Defense, with Pentagon contracts worth $2.2 billion a year."

Scott Amey, general counsel for the Project On Government Oversight, called the announcement "surprising but welcome" in a statement. "This is exactly the strong step the government should take to protect federal agencies, safeguard taxpayers, and establish expectations for responsible contractor behavior," said Amey. "BP had years to improve its business ethics and is paying the price for its inaction."

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