The Pentagon Gave $350 Million in Contracts to a Firm Closely Tied to a Senior Defense Department Official

The Defense Department has awarded nearly $350 million in contracts to a company closely tied to a senior Defense Department official, George K. Kollitides II. Kollitides, who worked at the Pentagon under a special classification, was listed as a senior adviser to an affiliated firm, Alvarez & Marsal Federal, just two months after starting his new role.

This $281 million no-bid consulting contract is the second in a pair of deals that have awarded almost $350 million in military spending to the firm since December, five times more than Alvarez & Marsal entities had received in the previous two decades. The contracts, which have been awarded to Pentagon offices where Kollitides holds a senior role, have raised concerns about potential conflicts of interest and a cozy relationship between Kollitides and the private sector.

The Defense Department maintains that Kollitides and the firms involved have followed all applicable rules, but ethics experts question the legitimacy of the contracts and call for radical reform of the Pentagon's procurement systems.