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Contracting official’s new job raises questions

By WTOP Staff

MATTHEW BARAKAT
Associated Press

McLEAN, Va. (AP) — SpaceX CEO Elon Musk and a watchdog group are questioning whether a former senior Air Force contracting official acted inappropriately by taking an executive position with a private contractor just months after awarding a multibillion-dollar rocket-launch contract that greatly benefits his new employer.

Musk, citing an article by the Washington-based National Legal and Policy Center, suggested Thursday night on Twitter that the Pentagon inspector general should investigate the actions of former Air Force civilian Roger “Scott” Correll. Earlier this year, Correll retired from his post as the Air Force’s program executive officer for space launch, where he wielded enormous influence in awarding a multibillion-dollar contract for 36 rocket launches over the next several years, shooting sensitive national security equipment into space.

The contract went to a company called United Launch Alliance, a joint venture of the nation’s two biggest weapons contractors — Chicago-based Boeing and Bethesda, Maryland-based Lockheed Martin Corp. Earlier this month, Correll took a job as vice president of government acquisition and policy with Aerojet Rocketdyne, the company that supplies the rocket engines used by ULA.

“Something here smells,” said Peter Flaherty, president of the National Legal and Policy Center. “There are a lot of unanswered questions, and the sums of money involved are so enormous that taxpayers are entitled to some answers.”

The exact value of the launch contract is not clear. But court records indicate it is the fourth-largest program in the entire defense budget, and that costs for an individual rocket launch easily exceed $100 million.

Glenn Mahone, a spokesman for Aerojet Rocketdyne, said the allegations surrounding Correll’s hiring are “completely without merit.” He said Correll began working at Aerojet only a week or two ago — well after the contract had been awarded — and that his hiring was vetted and cleared by the Air Force.

“We are confident in the process we followed in hiring Mr. Correll,” Mahone said.

Correll did not return phone and email messages seeking comment.

An Air Force spokesman declined comment Friday, citing ongoing litigation over the contract.

SpaceX, which has been pursuing Air Force certification to compete on rocket launch contracts, filed a court challenge last month seeking to nullify the contract. Earlier this week, SpaceX amended its complaint to include the allegations surrounding Correll’s involvement.

In a series of tweets Thursday night, Musk said the case “certainly deserves close examination by the (Department of Defense) Inspector General,” which conducts internal investigations.

Musk, a billionaire who founded the PayPal mobile payment service and is also CEO of electric carmaker Tesla Motors, said via Twitter that Correll “first tried to work at SpaceX, but we turned him down. Our competitor, it seems, did not.”

ULA spokeswoman Jessica Rye said in an emailed statement that ULA is the only company certified to provide the launch services sought by the Air Force and was rightfully awarded the contract.

SpaceX acknowledges that is not currently certified, but said it has met all the necessary requirements and expects to be formally certified later this year. The company said it is unfair to award a contract so large, that runs for so long, just before it was certified to compete for the work.

The contract “defers meaningful free competition for years to come, costing taxpayers billions of dollars more,” SpaceX says in its suit before the U.S. Court of Federal Claims in Washington.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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