Racial Discrimination and Fraud Over
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At the award of the NOAVA contract, LISC began to demonstrate a curious confusion about what the role of Computer-Based Training (CBT) and Computer-Based Instruction (CBI) was going to be. At various times TME was told that: 1) the VA would purchase tutorials from LISC and 2) that LISC had to supply tutorials without cost to the VA. Starting in January of 1991 six Statements of Work, each reflecting this diminution of the features, were produced for TME by LISC.
Lockheed’s Best and Final Offer to the VA (BAFO), presented TME as an essential subcontractor multiple times. (Document BAFO Bk. 2, p.4, Bk.3, p.2, Bk. 4, p. 5, 9, 10). The BAFO also states: “Involvement of these subcontractors in their speciality areas for the duration of the contract ensures initial and continuing Project success.” (BAFO Bk. 2, p. 2). Furthermore, the “consistent high quality of TME’s work and rapid delivery,” and TME’s “considerable knowledge about the NOAVA program,” impelled Lockheed to issue a Sole Source Justification letter for TME’s services. (Document LM-0009).
However, simultaneously and surreptitiously, Lockheed contacted white owned companies to do the work promised to TME. (See Document LM-0012-2/3 below). Lockheed maneuvered the bidding process and requirements, offering white owned companies less stringent requirements than TME was required to fulfill. This guaranteed that the white owned companies would provide a lower offer, thus fabricating a bogus cover to dump TME. (Document LM-0019). While Lockheed sought white companies to replace TME, they kept TME in the dark, issuing a Statement of Work (SOW) to maintain the fiction that TME was the sole provider. (Document LM-0012-4). After Lockheed procured an offer they wanted from a white owned company called VASCO, (Document VAS-0001-1/-2, VAS-0006-0, VAS-0007-1/2) Lockheed lied to TME and told us that they had misinterpreted the VA requirements and had not realized the VA expected the tutorials to be provided free of charge. (Document LM-0019). Lockheed then pretended to give TME an opportunity to bid for the contract that we had previously been led to believe had been awarded to TME (See Document SOW-0006). It was all a sham.
Lockheed’s Best and Final Offer to the VA (BAFO), presented TME as an essential subcontractor multiple times. (Document BAFO Bk. 2, p.4, Bk.3, p.2, Bk. 4, p. 5, 9, 10). The BAFO also states: “Involvement of these subcontractors in their speciality areas for the duration of the contract ensures initial and continuing Project success.” (BAFO Bk. 2, p. 2). Furthermore, the “consistent high quality of TME’s work and rapid delivery,” and TME’s “considerable knowledge about the NOAVA program,” impelled Lockheed to issue a Sole Source Justification letter for TME’s services. (Document LM-0009).
However, simultaneously and surreptitiously, Lockheed contacted white owned companies to do the work promised to TME. (See Document LM-0012-2/3 below). Lockheed maneuvered the bidding process and requirements, offering white owned companies less stringent requirements than TME was required to fulfill. This guaranteed that the white owned companies would provide a lower offer, thus fabricating a bogus cover to dump TME. (Document LM-0019). While Lockheed sought white companies to replace TME, they kept TME in the dark, issuing a Statement of Work (SOW) to maintain the fiction that TME was the sole provider. (Document LM-0012-4). After Lockheed procured an offer they wanted from a white owned company called VASCO, (Document VAS-0001-1/-2, VAS-0006-0, VAS-0007-1/2) Lockheed lied to TME and told us that they had misinterpreted the VA requirements and had not realized the VA expected the tutorials to be provided free of charge. (Document LM-0019). Lockheed then pretended to give TME an opportunity to bid for the contract that we had previously been led to believe had been awarded to TME (See Document SOW-0006). It was all a sham.
TME discovered Lockheed’s racist ruse because one of Lockheed employees, Claire Donovan, admitted that she sent TME this more simplified “wrong version of the SOW.” The recording below was left on Clovice Lewis' answering machine.
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"Hi Clovice, this is Claire at LISC. I'm calling regarding the wrong quote that I sent to you on the 27 of March for you to quote ... it was actually a revised Statement of Work. I need to touch base 'cause made some errors when I sent out the ROMs to all three of the people that I sent them out to. And I just want to make sure that you're not quoting off the wrong letter. Dave Etter may have given you a copy of his Statement of Work; in that case, you're probably quoting off the right one. Anyways, I need to clear this up. I'm sorry if it's caused any inconvenience. Give me a call back. I'm on (408) 987-4683. Thanks Clovice. Bye bye." |
The majority of the simplified CBT contracts went to VASCO, a white owned company, after VASCO gave assurances it could “produce an 8(a) alliance.” (Document VAS-0013). In addition to the racially skewed bidding sham, Lockheed failed to offer TME its bargained for right of first refusal. (TME and LISC were still bound to the terms of a legal contract at that time because a year had not elapsed.)
On July 23, 1991 TME Complained to VA about the change in CBT requirements. Clovice Lewis made inquiries at the VA concerning why LISC was able to abandon the requirements for CBT. He was informed that LISC received a waiver for the requirements because they told the VA that TME, as a minority-owned firm, was not capable of developing the CBT software. TME immediately filed a formal objection to this action which was never answered by the VA. (See Document T-0016)
In summary, Lockheed’s own memos substantiate that Lockheed:
- would not have been awarded the NOAVA contract without TME’s expertise and TME’s status as an 8(a) company
- Lockheed broke its agreements with TME
- unjustly dumped TME for white owned companies
NOTE: Lockheed Martin Corporation does not now own, nor is it associated with, Lockheed Integrated Solutions Company. In all instances "Lockheed" is an abbreviation for Lockheed Integrated Solutions Company. The story presented in this website is for historical and educational purposes only. It is a true account of how systemic racism operated in a corporation in the past, and an exposé of how it operates in the present.