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February 20, 2025

Commerce Secretary Lutnick accused of steering federal contracts to former employers

U.s. Department of Justice
Federal Trade Commission
www.cantor.com
www.fdic.gov
www.fpds.gov
+8

Federal contracts allegedly directed toward former employer companies

The federal government awards approximately $650 billion in contracts each year, representing nearly 15% of all federal spending (Federal Procurement Data System: https://www.fpds.gov/ezsearch/)

Howard Lutnick served as CEO of Cantor Fitzgerald for over 30 years before his appointment as Commerce Secretary (Cantor Fitzgerald Company Profile: https://www.cantor.com/about/)

Federal conflict-of-interest statute 18 U.S.C. § 208 prohibits an official from participating in any particular matter that would financially benefit a former employer for one year after leaving private-sector employment (Office of Government Ethics: https://www.oge.gov/web/oge.nsf/Resources/18+U.S.C.+%C2%A7+208%3A+Acts+affecting+a+personal+financial+interest)

By law, 23% of federal contracting dollars must be awarded to small businesses (Small Business Administration: https://www.sba.gov/federal-contracting/contracting-guide/small-business-set-asides)

Approximately 35% of federal contracts are awarded without full and open competition as sole-source awards (Federal Procurement Data System public feed: https://www.fpds.gov/ezsearch/FEEDS/ATOM?FEEDNAME=PUBLIC)

đź“‹Public Policyđź’°Economy

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10
Q1

What does the acronym OGE stand for in government ethics?

Q2

Government officials can legally steer contracts to companies they previously worked for.

Q3

Which principle requires government contracts to go to the most qualified bidders?

Q4

What federal law section prohibits officials from decisions affecting their financial interests?

Q5

Federal contracts must be publicly announced to ensure fair competition.

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People, bills, and sources

Howard Lutnick (Commerce Secretary)

Allegedly directed federal contract awards toward companies where he previously held leadership roles, including Cantor Fitzgerald

What you can do

1

Query the Federal Procurement Data System at https://www.fpds.gov/ezsearch/ using filters “Department of Commerce” and “Cantor Fitzgerald” to identify any awards since Feb. 20, 2025

2

Review Commerce Department contract notices on SAM.gov (https://www.sam.gov) as required by FAR Part 5 to confirm that each award has been publicly posted

3

Compare observed award data against the SBA’s 23% small-business set-aside goal at https://www.sba.gov/federal-contracting/contracting-guide/small-business-set-asides and flag any shortfalls

4

If potential conflicts under 18 U.S.C. § 208 are identified, submit a written complaint to the Office of Government Ethics via https://www.oge.gov/web/oge.nsf/About/Mission+and+Responsibilities