Two uninvited visitors showed up at a work site deep in the woods of northern Minnesota.
Inspectors from the U.S. Department of Labor had come to check on whether Garcia Forest Service LLC was properly paying its immigrant workers, who were planting trees and clearing brush for the U.S. Forest Service.
The inspectors found the payroll records were a mess. Garcia Forest Service had to pay 12 workers an additional $27,000, but the company faced a bigger consequence: losing its eligibility for federal contracts.
Nearly seven years went by. On April 24, the Labor Department announced that Garcia Forest Service and company president Samuel Garcia had been "debarred" — prohibited from getting any federal contracts for three years. The Labor Department publicized this case to show how federal contractors would pay the price if they broke the law.
Instead, it looks more like a diagnosis of what's broken with the system of blacklisted federal contractors.
As the debarment process groaned along, the federal money pipeline kept flowing to Garcia Forest Service. The company took in more than $13 million since that June 2007 visit to Tofte, Minn., by the Labor Department, according to the usaspending.gov website.
Scott Amey, general counsel for the Project On Government Oversight in Washington, has testified before Congress about strengthening the safeguards against bad contractors. He's well aware of the sluggish pace of contractor debarments, but the seven-year wait surprised even him.
"This case highlights the need to improve the federal contractor responsibility system," Amey said. "We need to better protect agencies and taxpayers, and hold contractors accountable."