Senator wants to put hold on GSA nominee over Sun contract

Sen. Charles Grassley, R-Iowa, plans to block the nomination of Jim Williams to head the General Services Administration over Williams' role in the award of a controversial information technology contract.

If it clears the Senate Homeland Security and Governmental Affairs Committee in a vote Wednesday, "Senator Grassley plans to put a hold on the nomination," a spokeswoman said Monday.

Grassley last week renewed charges that, as head of GSA's Federal Acquisition Service, Williams helped former GSA Administrator Lurita Doan improperly pressure contracting officers to conclude negotiations with Sun Microsystems Inc. on terms similar to those the agency previously rejected.

"Although I agree that he is a well-qualified and devoted civil servant, I don't believe Mr. Williams has the bureaucratic and intestinal fortitude to make the tough decisions at GSA when it matters," Grassley said on the Senate floor Thursday.

"Because he failed to protect the taxpayers at a crucial moment, we should not elevate Mr. Williams to high office," Grassley said.

A hold, which any senator can place, might derail Williams' confirmation. It would at least slow it.

Williams could become GSA administrator through a recess appointment or a lift of the hold, making him the first career civil servant appointed as head of the agency. But Grassley's opposition shows Williams has been hurt by his close work with Doan, who the White House ousted in April after scandals including a finding that she broke a law against political activity by federal officials.

Grassley began criticizing GSA's deal with Sun last year after backing GSA's inspector general in a broader dispute with Doan. At issue is GSA's 2006 extension of Sun's contract, through which federal agencies can buy IT products off a schedule. GSA's IG determined the firm broke an agreement to give the government discounts based on those private buyers got.

The Justice Department later sued Sun for fraud.

Williams got involved in negotiations in August 2006 when subordinates said the contract would likely not be renewed after more than a year of contentious talks, according to reports by Grassley's staff and the House Oversight and Government Reform Committee.

After Doan said losing the contract would be unfortunate for GSA, Williams met with the contracting officer negotiating with Sun. "Lurita wants this contract awarded. I want it awarded," Williams reportedly said.

Williams later asked the officer if he wanted to be removed from negotiations. The officer agreed, and his replacement completed the complex deal in nine days. The September 2007 report by Grassley's staff, obtained by CongressDaily, says the terms are similar to those GSA previously rejected.

The report suggests that, because GSA supports itself through fees for contracting for other agencies, Doan and Williams were more focused on keeping Sun's business than taxpayer value.

"This will protect all our business volume with Sun for the end of the fiscal year and beyond," Williams wrote Doan in a Sept. 9 e-mail after the contract was extended, according to the Grassley staff report.

Williams told the Senate Homeland Security and Governmental Affairs Committee Friday that he believes the contract was a fair deal. He said he told contract officers they could "walk away," if they were not satisfied with Sun's offer.

Grassley said Williams "improperly interfered in the negotiations" and erred by communicating independently with a Sun official.

"At the very least, this was a very poor management decision by Mr. Williams. ... He made the wrong choice. He is now accountable for that decision," Grassley said.

A GSA spokesman said, if confirmed, "Williams looks forward to continuing to work cooperatively with Senator Grassley and all members of Congress."