SEC Illegally Bought $1 Million Worth of Useless Apple Computer Equipment

SEC broke law with Apple equipment purchase

 

The SEC violated procurement law in 2008 when, without proper testing, it spent about $1 million buying computer equipment from Apple that "immediately failed" to work as intended, the agency's inspector general said in a report released this week.
 
The agency violated federal regulations by awarding the contract without competitive bidding and by telling Apple its budget for one of the orders, the report said.
 
Apple used that information to tailor its offer precisely to the budgeted amount, the report said. But Apple left out "essential equipment that the SEC was subsequently forced to purchase" at additional cost, the report said.
 
Among other violations, the SEC bought the equipment before the written justification for the contract had been approved, the report said.
 
"We agree with the report's recommendations and are taking steps to improve our policies and controls over purchases of information technology solutions," SEC spokesman John Nester said.
 
Apple spokeswoman Kristin Huguet declined to comment.
 

http://www.washingtonpost.com/business/economy/sec-broke-law-with-apple-equipment-purchase/2011/05/26/AG1qWNCH_story.html