Federal Agency Ripping Off Taxpayers by Selling US Gov't Chinese Tech Labeled As 'Made in USA'

AP Photo/Mark Schiefelbein

You could consider this sort of a combo pack of the Trump administration's all-of-government effort to tamp down on waste, fraud, and abuse, and tightening the national security inside our federal agencies. In this case, it involves an independent agency that has a major role in the products the government is required to buy.

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One of the major concerns for the General Services Administration (GSA) is that the agency, U.S. AbilityOne Commission, appears to be offering items for sale incorrectly labeled as "Made in USA" that are actually made overseas, including technology from China.

In a draft letter to the U.S. AbilityOne Commission, which was viewed exclusively by Fox News Digital, GSA Administrator Edward Forst laid out the results of his agency's investigation into AbilityOne's products list. 

He demanded that it do two things: "verify the country of origin of every product on its Mandatory Procurement List," and "conduct a comprehensive audit of products offered through GSA on pricing, sourcing and compliance with federal law and procurement policy."

Forst's department sent the letter [dated Friday] to AbilityOne Commission Chair Christina Brandt, which read in part: "Such an audit is necessary to provide transparency and accountability to the American people, protect the integrity of Federal procurement, and ensure that taxpayer dollars are not supporting inaccurate or misleading claims."

This AbilityOne program, the Fox News report noted, is supposed to "provide employment opportunities for people who are blind or have significant disabilities. Federal agencies are generally required to buy products and services placed on the commission’s mandatory list from participating nonprofit organizations."

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Another issue GSA's team discovered was the prices the government is being charged for some products - reportedly being jacked up as much as 55 percent - and there are questions on the sky-high salaries of some nonprofit executives: 

The letter contrasts those figures with an average annual salary of approximately $33,000 for blind workers, citing National Industries for the Blind data. An appendix identifies several AbilityOne nonprofits where executive compensation reportedly ranged from $500,000 to more than $1 million.

As my colleague Ward Clark wrote recently, Congress has also stepped up oversight on Chinese tech that could threaten U.S. security. It's also worth noting that GSA signed on to Vice President JD Vance's anti-fraud task force in late May, so this project has been in progress for months.


READ MORE: US Lawmakers Sound Alarm: Security Probe Launched on Chinese Chipmaker CXMT Amid IPO Concerns

Feds' Central Landlord Now Joining White House Anti-Fraud Offensive


Now, this could be a total coincidence, but the General Services Administration Office of the Inspector General's X account began advertising for several jobs this week, including this senior post in its Investigations team:

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The commission chairperson might want to take note.

Editor’s Note: Thanks to President Trump and his administration’s bold leadership, we are respected on the world stage, and our enemies are being put on notice.

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