The General Services Administration inspector general has blasted Federal Acquisition Service managers in a new report. It accuses them of circumventing their staff and altering contracts upon the contractors’ requests. The penalty could be huge. The IG recommends GSA cancel or re-do two contracts worth a total of half-a-billion dollars.

Defense contractors might not be feeling the love from the Pentagon in this era of shrinking budgets. If you’re a weapons maker and the top buyer no longer wants your goods, where do you turn? Maybe Pakistan. Or Turkey. Bloomberg Government analyst Evan Croen has mapped out the hottest growing markets for U.S. defense firms. He joins us now with his findings.

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How can the IRS bounce back from its recent scandals, while battling increased workloads with fewer employees, frozen pay and furloughs? John Palguta, vice president for policy at the Partnership for Public Service. says it’s a tough row to hoe.

A draft Defense Department inspector general report reveals details surrounding the disclosure of the identities of the Seal Team members involved in the Osama bin Laden raid, a story later immortalized by Hollywood in the movie “Zero Dark Thirty.”