DARPA under scrutiny for favoritism

WASHINGTON, Aug. 17 (UPI) -- A U.S. government agency that helps develop cutting-edge technology for the military is under investigation, the Pentagon's inspector general said.

Pentagon investigators have begun an inquiry into whether the Defense Advanced Research Projects Agency showed favoritism when it awarded $1.75 million in contracts to a company co-owned by the agency's director and run by her father, the Los Angeles Times reported Wednesday.

Records show Regina Dugan became director of DARPA in July 2009 after rejoining the agency.

She was a senior official when she left DARPA in 2005 to co-found RedXDefense with her father, Vince Dugan.

The Maryland firm builds devices to detect trace amounts of explosives, a technology that is used to help find roadside bombs in Iraq and Afghanistan.

RedX received a $400,000 contract in January 2010 after Dugan was named director. The firm was awarded a $1.35 million contract in August 2010.

Ethics experts said senior Pentagon officials are required to sell holdings in defense contractors to avoid potential conflict of interest but that rule does not apply to DARPA.