CPO News – February 19, 2015

Posted by Matthew York on February 19th, 2015
Stored in Articles, Chief Procurement Officers, General, People, Process, Strategic Sourcing

US Air Force Suspends FedBid Following VA Procurement Scandal

In late January, the United States Air Force announced that it has suspended business relationships with embattled reverse auction services provider, FedBid, and has moved to debar it from conducting future business with the Air Force. The announcement follows FedBid’s involvement in a procurement scandal at the Department of Veterans Affairs (VA) in September, wherein Susan Taylor, the former Deputy Chief Procurement Officer, was found by the VA’s Office of Inspector General (OIG) of having improperly acted on FedBid’s behalf to steer a contract to it. Readers can find prior coverage of the scandal here and here. According to an article by FCW.com, Air Force officials decided to take action to remove FedBid from its procurement operations after they found “adequate evidence” of a “lack of business honesty or integrity” at FedBid following the release of the VA OIG report.

The Air Force’s decision follows attempts made by FedBid to distance itself from the VA scandal and ensure greater federal regulatory compliance. For starters, the company split into two separate brands – FedBid, which now solely focuses on public-sector procurement, and a spin off, EPS Commerce Inc., which focuses on private-sector procurement. Joseph Jordan became the new CEO at FedBid, while FedBid’s Founder and former CEO, Ali Saadat, moved over to head EPS Commerce. FedBid also formed an executive committee and hired a law firm to review its involvement in the VA procurement scandal to determine if it had engaged in any illegal activity. Although the committee concluded that FedBid did not engage in any illegal activity, it did recommend that FedBid make further changes to improve its internal culture and the way it handles third-party relationships.

ISM Names New Board of Directors, Johnson & Johnson CPO as Chairman

On January 22, 2015, the Institute for Supply Management (ISM) announced its 2015 Board of Directors during its annual membership meeting held in Chandler, Arizona. A dozen senior leaders in the procurement and supply management profession were named to the Board, including leaders from the pharmaceuticals, petrochemical, financial services, and electronics industries. According to ISM Chief Executive Officer, Thomas W. Derry, “Our new Board offers an impressive range of knowledge and professional experience, representing major industries and significant organizations from around the world. With these new relationships, ISM remains committed to providing the resources for success for supply chain management professionals worldwide.”

Hans Melotte, Vice President and Chief Procurement Officer at Johnson & Johnson, will serve as Chairman of the Board at ISM. Melotte brings 35 years of experience in procurement and supply management to the role, including more than four years in his current roles at Johnson & Johnson. In 2013, Melotte was named a one of the “Top 10 Most Influential Thought Leader CPOs” in the US, and was a 2010 Procurement Leader of the Year. “The expertise and guidance that Hans Melotte can provide to ISM will prove invaluable to the future of procurement and supply management,” added Derry. Melotte said that serving was ISM’s newest Chairman was a “great honor,” and that “as Chair,” he is “committed to ensuring that [they] keep ISM moving in the right direction.” We congratulate Melotte and the ISM Board, and look forward to their fine work at ISM.

In Other Procurement News

  • Pentland Brands Names Matt Rock as Global Supply Chain Director: Last month, Pentland Brands, the UK-based parent company of many sports, outdoor, and fashion brands like Canterbury of New Zealand, Mitre, and Speedo, announced that it has appointed Matt Rock as its new Global Supply Chain Director. Rock previously served as the Managing Director for Pentland’s Lifestyle Division. His promotion is the latest step in a 25-year career in the fashion and footwear industry, which includes Sales Director at Ted Baker footwear and Head of Fashion Sales at Puma.


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