Wednesday Morning Federal Newscast – June 29th

USPS spent thousands on sports tickets

The Morning Federal Newscast is a daily compilation of the stories you hear Federal Drive hosts Tom Temin and Amy Morris discuss throughout the show each day. The Newscast is designed to give FederalNewsRadio.com users more information about the stories you hear on the air.

  • Agencies will submit Federal Employees Compensation claims electronically starting in 2013. A new rule from the Labor Department is aimed at modernizing claims processing. Labor’s Office of Workers’ Compensation Programs plans to launch a Web site for handling compensation claims. It has until by Dec. 31, 2012 to get it up and running. The Federal Employees Compensation Act provides benefits to civilian federal employees injured or killed on the job. A spokesman says the new FECA rule is the first since 1999. Workers Compensation Director Gary Steinberg says Labor will also allow video and teleconferences in claims hearings. Plus, the rule adds a person’s skin as an organ covered by worker’s compensation. That provision is retroactive to September 11, 2001.
  • A key lawmaker says the Postal Service is setting a “dangerous precendent” by cutting its employer contribution to the Federal Employees Retirement System. California Representative Darrell Issa, Chairman of the House Oversight and Government Reform committee, wrote a letter to the Office of Personnel Management. In it he says the move by USPS sets a bad precedent for other cash-strapped agencies, that could follow suit. Issa also questions the legal authority of the Postal Service to halt its retirement contributions. USPS says the move would save 800 million dollars this fiscal year. But, that’s less than 10 percent of their projected deficit of 8.3 billion dollars, wrote Issa. Last month, Issa introduced a bill that would change the agency’s internal structure and cut mail delivery from six to five days a week.
  • Postal Service employees in one city spent nearly $15,000 on season and group tickets to pro basketball, football and baseball games. It was an “imprudent” use of the SmartPay Purchase Card postal agency auditors say. But the sports tickets did not directly violate USPS purchasing procedures because they were bought as recognition awards for postal employees, according to the Washington Post. Either way the IG says the purchases directly conflict with USPS’s goal of driving down costs in everything they do. Overall, auditors found oversight of the Purchase cards improved in 2010.
  • The Army paid $23 million for spare helicopter parts from Boeing that were worth only $10 million. That according to a leaked Defense Department inspector general’s report made public on the Project on Government Oversight website. Among the other things Army was overcharged for by Boeing: $1,600 for a plastic roller available from internal Pentagon supplies for just $7. They also paid $71-per-unit for a set of metal pins that Defense could have provided for 4 cents. That’s a markup of 177,000 percent. The Inspector General of the Army criticizes the branch for not bargaining harder on prices. He also recommends that Boeing refund the Army more than $6 million. But Army has turned down that Idea. GovExec reports Boeing blames rapidly changing requirements during a time of war for the fluctuation in prices.
  • A legal watchdog group is asking the FBI to investigate California Rep. Laura Richardson. They say she forced her congressional staff to work on her campaign or face losing their jobs. The Washington Post reports, the group Citizens for Responsibility and Ethics in Washington, or CREW, received a letter. It accused Richardson of intimidating her staff into making political contributions and soliciting donations on federal property. It also accused Richardson of improperly using appropriated funds and lying to Congress. CREW also published some internal emails it says proves wrongdoing. A spokesman for Richardson says the charges are unfounded.
  • The Senate has confirmed James M. Cole to the No. 2 spot at the Justice Department . His nomination had been stalled over his opinion on terrorism trials. The 55-42 vote fell largely along party lines. It occurred after Republican Chuck Grassley of Iowa lifted a hold on Cole’s confirmation as deputy attorney general. The Senate also confirmed Lisa Monaco to run the division overseeing terrorism cases and Virginia Seitz to run the office of legal counsel.
  • Space Shuttle Atlantis has been cleared for next Friday’s launch. NASA managers have signed off on the cargo run to the International Space Station, and the final flight in the shuttle program. Atlantis will be delivering a year’s worth of food, clothing, science equipment and supplies to space station. Meanwhile, as the space station prepared for Atlantis’ arrival, there was a threat of impact from space debris. The crew had to seal themselves in the Soyuz capsules, which serve as lifeboats. The debris whizzed by – about 1,100 feet away. No damage.

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