In August 2007, after a year of soliciting bids from companies nationwide like Federal Express and UPS, the Pentagon awarded a $1.635 billion contract to Menlo Worldwide Government Services of San Mateo and related firms to handle all Defense Department shipping in the United States. At the time, the contract was labeled by the trade newspaper Transport Topics as “the largest logistics outsourcing in history.” The deal also was the opportunity for a massive fraud, according to a complaint ...