US Navy suspends contracting services with Inchcape Shipping Services

The US Navy has suspended contracting services with Inchcape Shipping Services Holding (ISS) and its affiliated companies, claiming it significantly overcharged on a contract.

The Navy officials recommended suspension of ISS services and its affiliates following finding evidence of questionable business integrity.

Inchcape public relations consultant Andrew Baud was quoted by The New York Times as saying that the company is committed to ethical contracting and cooperated with the government over an inquiry into its business practices.

During the period of suspension, the Department of Navy (DON) and all other Federal departments and agencies are prevented from entering into new contracts, exercising options under existing contracts or issuing any new task or delivery orders, without agency head approval, under indefinite quantity contracts with ISS or its affiliates.

Navy information chief, Rear Admiral John Kirby said: "The SDO’s decision reinforces the high standards of conduct and business practices to which the DON holds contractors who desire to do business with the Federal Government.

"It also reflects the mandate of the Secretary of the Navy, Ray Mabus, to ensure that DON contractors are fully compliant with contracting regulations and procedures."