Contractors Charging U.S. for Concerts and Tennis, Probe Says

Defense and environmental contractors have charged the government for “employee morale” expenses that included a Smokey Robinson concert, tennis lessons and professional quality golf balls, House investigators reported Monday.

“At a time of tight fiscal constraints, limited tax dollars designed for defense or environmental protection should not be squandered on expensive rock concerts . . . or tennis court time,” Rep. John D. Dingell (D-Mich.) wrote to Alice Rivlin, director of the Office of Management and Budget.

Since July, Dingell’s staff on the House Energy and Commerce investigations subcommittee has been compiling information on contractor charges for recreation and “employee morale.”

The House investigators said Defense Department auditors this month questioned $3.3 million in contractor entertainment and recreation charges, and $832,000 for employee awards and gifts.

Several of the findings involved expenditures by Martin Marietta, headquartered in Bethesda, Md.

The company or its subsidiaries charged the government $263,000 for a Smokey Robinson concert in Denver; $417,629 between Oct. 1, 1991, and last July 24 for maintenance and operation of a park for company employees at Oak Ridge, Tenn.; $20,194 for professional quality golf balls over the last three fiscal years, and $7,589 in fiscal 1994 for a Christmas party account in Oak Ridge, including $200 for a performer to play Santa Claus at a party for employees’ children.

Other findings:

* $243,000 in employee morale charges by Ecology and Environment Inc. of Lancaster, N.Y., and $37,000 for recreation, including employee tennis lessons and court time, bike races, golf tournaments and company-sponsored softball and soccer leagues.

Ron Frank, vice president for finance, said the environmental firm bills such items as overhead costs to all its customers. Frank estimated the government’s share was only about a third as large as House investigators reported.

* $63,000 for crystal decanters for employee awards by defense contractor Science Applications International Corp., San Diego.

Science Applications spokeswoman Sue Volek said the decanters cost only $14,000. Volek added the company had reversed its decision to charge the government, even though the billing would have been proper under federal rules.