Free Deposition - District Court of Federal Claims - federal

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IN THE UNITED STATES COURT OF FEDERAL CLAIMS UNITED STATES MEDICAL SUPPLY COMPANY, INC., Plaintiff vs. THE UNITED STATES, Defendant - - Philadelphia, Pennsylvania Friday, September 21, 2007 - - Deposition of ANTHONY AMENDOLIA, taken at the UNITED STATES DEFENSE SUPPLY CENTER PHILADELPHIA, 700 Robbins Avenue, on the above date, beginning at approximately 8:30 a.m., before Jessica Haddix, Registered Professional Reporter and Notary Public. : : : : : : : : CASE NO.: 03-CV-289

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Page 2 1 2 3 4 5 6 Representing Plaintiff 7 8 9 10 11 12 13 14 15 Representing Defendant 16 17 18 19 20 21 22 23 24 25 GWENDOLYN PARKER & ASSOCIATES 214-747-8007 MICHAEL McGLINCHEY, ESQUIRE DEFENSE SUPPLY CENTER PHILADELPHIA Office of Counsel 700 Robbins Avenue Philadelphia, PA 19111 KYLE CHADWICK, ESQUIRE U.S. DEPARTMENT OF JUSTICE Commercial Litigation Branch 1100 L Street, N.W., Room 7062 Washington, DC 20530 Representing Defendant APPEARANCES: FRANK BROYLES, ESQUIRE KAREN-LEE POLLAK, ESQUIRE GOINS, UNDERKOFLER, CRAWFORD & LANGDON, L.L.P. 1201 Elm Street, Suite 4800 Dallas, TX 75270

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Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2 16 3 17 18 19 20 21 22 7 23 24 25 Correspondence and attachments from Michael L. McGlinchey to Frank L. Broyles, dated may 23, 2007 34 4 5 6 Defendant's Response to Plaintiff's First Set of Discovery Requests to Defendant United States Declaration of Peter Brown E-mail Correspondence Regional Tri-Service Medial Logistics Data Collection 25 E-mail Correspondence 24 NO. 1 DESCRIPTION Affidavit of Anthony Amendolia PAGE 8 E X H I B I T S _ _ _ WITNESS ANTHONY AMENDOLIA EXAMINATION By Mr. Broyles 4 I N D E X PAGE

27 29 33

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Page 4 1 2 3 4 9 5 6 10 7 11 8 12 9 13 10 14 11 12 13 16 14 15 16 17 18 19 21 20 21 22 23 24 25 GWENDOLYN PARKER & ASSOCIATES 214-747-8007 - - E-mail Correspondence 80 17 18 19 20 E-Mail Correspondence, dated January 11, 2001 E-mail Correspondence E-mail Correspondence E-mail Correspondence Gen II Transition - Plan BFeb 26th 60 64 69 71 76 15 Correspondence, dated August 6, 1997 Correspondence, dated July 15, 1999 55 59 E-mail Correspondence 53 Usage Items 50 Spread Sheet 44 E-mail Correspondence 42 Medical/Surgical Prime Vendor, National Capital Region 40 INDEX (continued): 8 Medical/Surgical Prime Vendor, Lone Star Region 38

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Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ANTHONY AMENDOLIA, after having been first duly sworn, was examined and testified as follows: BY MR. BROYLES: Q. Broyles. Mr. Amendolia, my name is Frank I represent United Medical Supply

Company in a breach of contract case against the government. For the record, would you please state your full name? A. Q. My name is Anthony Amendolia. Mr. Amendolia, you understand that

the United States is being represented by Mr. Kyle Chadwick, who is not here today due to some transportation issues, and that Mr. Mike McGlinchey, who is agency counsel, is present in the room? A. Q. Yes. And that Mr. Chadwick has instructed

us that we're free to go ahead and start this deposition without him? A. Yes. MR. BROYLES: Mr. McGlinchey,

would you just make a note on the record

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Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. No. of that? MR. McGLINCHEY: everything you just said. BY MR. BROYLES: Q. Mr. Amendolia, do you recall that I agree with Anthony Amendolia

there has been an issue in this case regarding the preservation of documents? A. Q. I do. And have you seen Judge Allegra's

sanctions order with respect to the preservation of documents and the destruction of documents? A. Yes, but I don't know -- there was

several e-mails or pieces of information that I received. from. Q. His particular sanctions order is I'm not quite sure who it was

precluding the government from cross-examining one of our experts. Does that ring a bell to you? One of our experts was --

One of United Medical's experts, the

government will not be permitted to cross-examine United Medical's experts on

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Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. No. Anthony Amendolia methodology for estimating damages due to diversion. Does that ring a bell? No, it doesn't.

Now, in the last few months have you

seen any new policies that come out of DSCP regarding the preservation of evidence in the event of a lawsuit? A. Past few months? I recall since

years ago, when we first sent out that message, there have been some more information on that subject, yes. information. I received the

I don't remember if it was the

past few months or a little before that. Q. Prior to this lawsuit by United

Medical, had you been involved in any litigation before? A. Q. No, never. Have you had any training with

respect to litigation procedures and discovery procedures prior to the filing of this lawsuit by United Medical? A. anything. I can't say that I remember having I never had any training.

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Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia (Exhibit 1 was marked for identification.) BY MR. BROYLES: Q. Mr. Amendolia, do you recognize what

the court reporter has marked as Exhibit 1? A. Q. Yeah. Is that your signature that appears

on the second page of Exhibit 1? A. Q. Yes. Mr. Amendolia, one of the rules we

have to have here for the sake of the court reporter is you have to let me finish my question before you answer, and I have to let you finish your answer before I ask another question because she can't take down both of us at the same time. So, try to be conscious of that and let me fennish my question before you answer. A. Q. employer? A. The Defense Supply Center of Okay? Okay. Thank you. Who is your current

Philadelphia.

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Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. No. Do you recall seeing Judge Allegra's Q. Anthony Amendolia And what is your position with

Defense Supply Center of Philadelphia? A. Q. A. Currently or previous? Presently. I am a supervisory customer account

specialist. Q. A. Q. When did you assume that position? February of this year. Prior to February of this year, what

was your position with the SCP? A. I worked in the medical directory,

and our title was changed to Tailor Vendor Logistics Specialist or TVLS. Prior to that,

before that name change, we were kind of known as case manager or, in other words, account manager. Q. Now, have you seen one of the things

that Judge Allegra indicates about you in his sanctions order is that you're an attorney. Are you an attorney?

sanctions order saying you were an attorney? A. No; that would have surprised me,

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Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that? A. Q. Of course. Yes, I would have. Anthony Amendolia and I certainly would have straightened that out as soon as I saw it, so, no, I didn't. Q. So we can safely say you haven't

seen the sanctions order? A. Q. We can safely say that, yes. Because you would have jumped on

When you learned of this lawsuit,

you were given some instructions to obtain documents from the different medical treatment facilities, correct? A. Q. Yes. And you were also given instructions

to pass on to these medical treatment facilities that they were not to destroy documents, correct? A. Q. A. Yes. Who gave you those instructions? I'm not sure if they came from

Kathleen Hallam or someone else, but I think I remember them coming from Kathleen, from -probably from someone else through Kathleen to me, as far as I can remember.

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Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Anthony Amendolia How did you make a decision as to

what documents might be relevant to this lawsuit? A. I didn't categorize or request any My idea --

particular documents to be saved.

the way I communicated with all of my customers for every request that I had was to -- because there were several, was to use e-mail. So I just took my e-mail list of customers and either forwarded or sent a new e-mail just requesting that all the customers hold or not destroy any of the records related to the United Medical case, as far as I can remember. Q. At the time that you did this, had

you actually seen a copy of the lawsuit that United Medical had filed? A. lawsuit. I remember having a copy of the I don't know if it was after or

before the time frame that I sent out the message. Q. Do you recall seeing actual

discovery requests, interrogatories and

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Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. Anthony Amendolia requests for production, that United Medical had served on the government? A. If I saw them, I probably wouldn't

know the importance of them at the time or really what I was looking at actually. mean, I may have read them, may have understood the lawsuit issue. I may have generally had an idea of what everything was, but I don't recall seeing it before or after. remember when I saw it. Q. Because basically what I am trying I don't So, I

to get at, Mr. Amendolia, is that you were given the responsibility for going out to the medical treatment facilities and having them preserve relevant documents, but in fairness to you, you had no idea what documents were relevant or not relevant to the lawsuit. Would that be a fair statement? I mean, I just assumed that

not to destroy any document concerning -- you know, anything they had concerning the United Medical contract. No, I really didn't know which

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Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia documents would be safe to get rid of. just assumed save them all. Q. But in terms of save them all, for So I

example, the budgets of the different medical treatment facilities, did that even cross your mind that they needed to save their budgets? A. No, that probably wouldn't have been

something that I -- most of the time, the people that I dealt with, would not probably know their budget. So that probably wouldn't The budget is usually

have crossed my mind.

at a higher level than the people that I dealt with. Q. So in terms of obtaining documents

from the medical treatment facilities, you understood your responsibility was to deal with the people that you dealt with regularly, and if there were relevant documents outside their area, you weren't dealing with that, at least in your mind? A. I guess if you mean -- I guess

that's correct, and if you mean that I contacted the facility by my person -- the point of contact that I had, and I guess I

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Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia believed that was their responsibility to make sure that any document they knew that concerned United Medical would not be destroyed. Now, that may be an assumption, but that's probably what I assumed when I contacted each facility. Q. And when you contacted each facility

though, you didn't provide that facility with a copy of the lawsuit or with a copy of our discovery request? A. Q. No, definitely not. And you didn't provide the facility

with a summary of the lawsuit or a summary of our document requests? A. Q. Definitely not, right. At the time that you were, what,

called the case manager for United Medical, correct? A. Q. Case manager, right. Yes.

Were you the case manager for any

other prime vendor contracts? A. There was a time when the Texas area

was my only region, but I did receive another

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Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia area of the country. I don't know if it was

at the beginning, the middle, end of the contract, but I also had Chicago area at some point; region five that would have been considered. Region six was the Lone Star area at the time, and then I also got region five. Q. On Exhibit 1, if you'll go to -- do

you see up at the top where it says Page 5 of 30? A. Q. Yes. And so this is an e-mail that you

sent out on November 6 of 2002, and you write, "To All, On October 1st, I sent the message below asking that everyone with any United Medical correspondence, save the information in case DSCP would need copies." Why did you just ask them to save correspondence and not other types of documents? A. I may have used that word meaning to Correspondence, I

say any kind of document.

guess, in my mind was anything that they used

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Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia for the contract. So it may have been a bad

word to use, I guess. Q. Did you copy Ms. Hallam on that?

There is a gillion e-mails. A. I don't remember if I did. There

could be a chance I did not. like I did. Q.

It doesn't look

Now, you asked the people there that

they say -- you say, "Please respond to this e-mail whether you have any information or not," and one of the concerns that Judge Allegra had that he talked about in his sanctions order was that you asked for a response, and if you didn't get any response, you never followed up to find out why you did not get a response. Why did you not follow up if you did not get a response after you asked for one? A. The customers, and you can see the

long list of customers there, regularly I would send e-mails out to that customer group, and for whatever reason, it would not be unusual for me not to get responses from them

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Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia for certain things that I have asked. And I guess what happened with this e-mail, and I have to say not knowing at the time all of the history of how important it was to actually get a response, and, you know, what we were actually looking for, I didn't know that I would have had to contact and follow up on each and every customer. I took the big customers, I believe, and called them -- maybe that could have been a half a dozen -- called them to speak to them about any response received, but I did not take the time to call everybody, only thinking that maybe just not knowing that it was that important that I do that. Q. Again, you had no training in

litigation support? A. Q. Right. Now, turning the page to Page 6 of

30 there, and you write there in the middle paragraph, If anyone can produce a system generated listing of individual NON PV purchases from the same time period, it would be greatly appreciated.

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Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 discussions? A. I remember we would talk about the Anthony Amendolia Did you get any listing like you requested there do you recall? A. To my recollection, I think there Bruce

was maybe one person, maybe one or two.

Christie from Fort Sill always seemed to be able to have something like this or the only other person that could have done that was Debbie Thompson at BAMC. I don't remember

whether or not they were actually able to do that. If I got one response, that would have probably been about as much as I could remember getting. Q. Fair enough. I don't remember. Now, Mr. Bandy (ph.)

indicated that you and he had several discussions about the government's use of credit cards to purchase medical supplies. Do you recall any of those

government use of credit cards because naturally back then our intent was to have our customers move their credit card purchases to prime vendor program.

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Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Anthony Amendolia And what obstacles did you encounter

in trying to get the customers, meaning the medical treatment facilities, to move their purchases of credit cards to the prime vendor program? A. Just actually helping them find

DAPA -- Distribution and Pricing Agreement, it's a pricing vehicle -- just getting to find exactly what they're buying on credit card to what we actually have on DAPA to match exactly. So that was -- first of all, the biggest challenge was to find -- and if that -- or it may be something close to that. So that was our biggest challenge. Q. One of the things -- you know

Colonel Jim Reilly (ph.)? A. Q. Sure. Colonel Reilly indicated that one of

the biggest problems was that doctors and nurses had credit cards, and they would buy -just use their credit cards to buy, and they were outside the supervisory role of the department of logistics.

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Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia Did you deal with doctors and nurses on trying to get them to stop their use of credit card purchases? A. Q. A. No. Were you aware that was going on? Well, I mean, I knew that there was

some other offices that had credit cards because of, in that situation, if they would need something under emergency, they would certainly be able to buy something themselves. They didn't have to go through logistics people in every case. Q. Were you aware they were using

credit cards to buy -- these doctors and nurses, and what Colonel Reilly referred to as clinicians -- that clinicians were using credit cards to buy on other than emergency basis? A. That possibility -- yes, that

possibility was there only because we did not have 100 percent coverage in our contract for every item that a facility would use. So it would not be unusual for them to buy certain items under the contract

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Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia in a nonemergency basis. Q. Would you say it's a fair statement

that there were significant purchases being made by clinicians using credit cards that should have been made through the department of logistics under the prime vendor program? A. Significant. I think, in my

opinion, a fair statement would be that there was purchases made by credit card that could have theoretically gone through the prime vendor program, and I wouldn't be able to determine whether or not those purchases were made because the item was not available through the prime vendor and they were buying it for that reason or whether they were buying it directly using their credit card, even though the item was available through the prime vendor. I wouldn't be able to determine that, and it would be my opinion that the way the prime vendor program was set up, that it would be much easier, less expensive to buy through our program. So if that option was

there, that they would take that option.

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Page 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. Anthony Amendolia You did an investigation, I

understand, on the direct purchases at Fort Sill of -- or maybe it was Sheppard Air Force Base, but I think it was Fort Sill -- of McGaw IV solutions. Do you recall that? I probably did. I don't recall the

details of it.

I mean, I did several, I will

call them studies, but really my job was -the IV solution was probably a different subject; that had a different turn to it because that was -- IV solutions were actually under another separate contract with the VA that there was something special going on there that I may not remember all the details to that particular one. Q. So you don't recall then that United

Medical actually supplied McGaw IV solutions? A. They would have, yes. They would

have had to, but in that case, I don't believe we had DAPAs, our regular, our most used contract vehicle to get the pricing on our prime vendor contracts; that was a separate contract, I believe, with the VA, but we used

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Page 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia the pricing and ran that through the prime vendor program. That was a little bit

different of a subject, but you can continue. Q. So, is it your recollection then

that there was actually non-DAPA items being run through the prime vendor program? A. In the contract there were other

pricing vehicles able to be used than DAPAs and the VA contract. Other long-term

contracts could be used for pricing other than DAPAs, and that was one of them. Q. One of the issues in the case is the

closing of the warehouses by United Medical starting with the El Paso warehouse. You were aware that United Medical did close those warehouses? A. Q. Yes. How did you become aware that they

intended to close them or had closed them? What do you recall about that? A. I don't remember if I was alerted by

a customer first or maybe contacted by United Medical or our contracting people. I don't

really remember first hearing about it, but I

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Page 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia did understand that that El Paso warehouse was closing. Q. Did you know the El Paso warehouse

was going to be closed before it was closed do you recall? A. Q. I believe so, yes. Mr. Bandy's recollection is that you

and he had discussions regarding what they were going to do with all the stock that was in the El Paso warehouse when they closed the warehouse? A. I am sure that would have been a I don't really remember

topic of discussion.

exactly talking about it, but I could imagine that we both would have talked about that. (Exhibit 2 was marked for identification.) BY MR. BROYLES: Q. Mr. Amendolia, I have handed you

what the court reporter has marked as Exhibit 2, and I really don't have any questions about Exhibit 2 other than to ask you if those appear to be e-mails that were either sent to or by you?

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Page 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Anthony Amendolia Sure, they look like they were sent

by me, sure. (Exhibit 3 was marked for identification.) BY MR. BROYLES: Q. The court reporter has handed you

what's been marked as Exhibit 3, which is a portion of the discovery requests and responses that the government provided in response to our discovery request. Do you recall seeing that document before? A. Q. Something from Debra Thompson? No.

Do you recall if you had any input

into the answers that were provided in Exhibit 3? A. Not Debra -- if Debra provided

these, I didn't talk to her at any time about these answers. Q. document. A. Q. I don't know. It's not necessarily Debra Thompson. Maybe I have given you the wrong

It came from Kathleen Shahan.

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Page 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you know? A. Q. I could have. I don't remember. Anthony Amendolia Did you ever meet Ms. Shahan do

She is a lawyer with the Department

of Justice? A. The name sounds familiar. I may

have met her once. Q. And then the answers, you know, to

these interrogatories, you don't recall being asked to provide any information with respect to those answers? A. There were times I did have to Did I know that they were I mean, yeah, I

answer questions.

from an interrogatory?

probably did have to answer some type of questions to interrogatory. It's not fresh in

my mind, but I'm looking at it and it's coming back. Q. Did you review any documents or talk

to anybody in preparation for your deposition today? A. Not really. I mean, other than a

short conversation of topics that may come up, but these were things that we talked about

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Page 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 face? A. I could have. I remember the name. A. Anthony Amendolia before while I was being asked for information. minutes. (Exhibit 4 was marked for identification.) BY MR. BROYLES: Q. The court reporter has handed you So nothing -- just a few

what's been marked as Exhibit 4, which is the Declaration of Peter Brown. Do you know Mr. Brown? I remember the name and probably had

conversations with him or e-mail. Q. Do you recall meeting him face to

I probably -- I don't know whether I did or not, to tell you the truth. Q. I want to ask you some questions

about paragraph two in that declaration. A. Q. Sure. Because he talks about you in

paragraph two. A. Q. Okay. And this declaration is one of the

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Page 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia issues that Judge Allegra is focused on. Peter Brown says that you gave him eight names and told him that no other medical treatment facilities had any documents relevant to the lawsuit. First of all, do you recall telling Mr. Brown that none of the MTFs, other than the eight names you provided, had any documents relevant to the lawsuit? A. It doesn't -- I mean, I don't

exactly recall that, but it sounds about right. If I would not have received a I may

response to my e-mail about documents.

have taken it as a no, except for the maybe responses and calls I did make and the names I did offer. Q. And to be fair, what I'm going to

focus on is the use of the word "relevant," because our contention is that you were not aware of what documents were relevant to the lawsuit and what documents were not relevant to the lawsuit. things. You asked for specific

We never saw you ask for things using

the word relevant.

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Page 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia My first question is do you specifically recall using the word relevant with Peter Brown? A. No, I don't specifically recall it.

I probably back then, like I said, asked for any information or any documents or correspondence. I may have used those

interchangeably and, you know, expected it to be anything that you had, whether it was e-mail, whatever you used in that contract. My intent was to ask for anything. "Relevant," I probably did not use. Q. Do you know back then if there were

written procedures at DSCP for what should take place in terms of getting documents and preservation of documents that you would have had to follow? A. If there were, I was not aware of

them or maybe I just didn't know enough to follow them, either one. Q. Okay. (Exhibit 5 was marked for identification.) BY MR. BROYLES:

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Page 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Anthony Amendolia The court reporter has handed you

what she has marked as Exhibit 5, which is -this is, again, some e-mails that you sent out, correct? A. Q. Yes. And I want to focus on the second

paragraph of your e-mail where you say, "Ft. Hood has consistently reached $70,000 in sales per month," and you say, "But has potential to double that figure because they still buy a significant amount of Med/Surg items by credit card." How did you come to the conclusion that they had potential to do 140,000 a month in sales? A. Well, in 1996 the program was in its

infancy, and I am sure that $70,000 in sales was a result of the limited number of items that we had on DAPA at the time because I think we -- our awards were just a year or two into that, and we did not have good coverage like we did later on, but. So I don't know whether I received information from the facility there

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Page 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 room.) MR. BROYLES: to pause for a moment. out of the room. We probably ought Mr. McGlinchey is Anthony Amendolia saying that we buy so much more in credit cards that gave me the idea that they could double it. (Mr. McGlinchey leaves the

We'll take a little

off-the-record break here. (Messrs. Chadwick and McGlinchey enter the deposition.) BY MR. BROYLES: Q. We have been talking about Exhibit

5, and the last paragraph on Page 1 of Exhibit 5 refers to a 122 page computer printout. Now, we have asked for a copy of that printout, and I understand that neither you nor Fort Hood has that printout. Do you recall hunting to see if you had that printout? A. Yes, I remember looking for it, but

generally what I would do is -- back then we probably didn't have an electronic version of it, so I would have the hard copy printed out.

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Page 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia I would look up what I can on the printout, annotate what I found, and I would mail it back to the facility probably. I wouldn't keep a copy. Q. printout? A. Not exactly. I would kind of figure Do you recall in your mind that

what it had on it and what the contents of the printout were. Q. Do you recall if the credit card

usage that was on that printout included credit card usage by the doctors and nurses or was it just credit card usage by the people in logistics? A. There was no distinction on the It was just

report of who bought the items.

what items were purchased by credit card. Q. So if it only included people in

logistics that were using the credit card, you wouldn't know that? In other words, you didn't see anything that showed you that somebody was a doctor or a nurse, it just had a name? A. Right. I wouldn't know if that was

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Page 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 me. Anthony Amendolia a complete listing or not. (Exhibit 6 was marked for identification.) BY MR. BROYLES: Q. The court reporter has handed you

what has been marked as Exhibit 6. Does that document look familiar to you? A. Q. No, not really. You recognize that as something

purportedly dealing with Fort Hood, correct? A. Q. Yes. And looking at the purchases of

medical supplies that are reflected there, do those look like the potential methods by which medical supplies are routinely purchased? A. Are you asking through the different Credit card, LID, ECAT,

programs on here: medical/surgical?

The document isn't familiar to I mean, it's probably some type of I don't remember

internal Fort Hood document.

going through doing any review or basing anything from this type of a document.

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Page 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. A. Yep. Do you recognize that handwriting? No. It's not my handwriting, but I identification.) BY MR. BROYLES: Q. The court reporter has handed you Anthony Amendolia (Exhibit 7 was marked for

what's been marked as Exhibit 7, which we understand to be dealing with the Generation II estimates. Were you involved in preparing, helping to prepare the estimates that were used in the solicitation for the Generation II prime vendor program? A. involved. No, I don't recall being directly I may have learned after the fact

of how they were gathered or my impression of how they were gathered, but I think this was more of a function of the contracting side of the house at the time. Q. You'll see some handwritten

notations at the bottom of the spread sheet pages. Do you see those?

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Page 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia don't recognize who it might be. Q. Now, I understand that you're

currently attempting to determine what the Owens and Minor sales were under the -- in the Lone Star region under the prime vendor program; is that correct? A. Q. A. Q. month. A. I don't -- let me make sure I You're asking if I Currently? Yes. Currently right now? Well, not this very minute, but this

understand the question.

am currently involved in trying to determine what the sales of Owens and Minor were back then? Q. A. Yes. I have been asked for the I haven't been able to locate it

information.

at this time yet. Q. A. Where have you looked? Well, I have looked through my

e-mail, which I didn't think I would be too successful, and my desk area, where I have

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Page 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia made a move since. So I still have to try to

figure out where my -- anything that I would have left would have -- it probably could only be in a couple areas, but I haven't gotten to everything yet. Q. So you haven't gone and looked at

the contract files with respect to the Lone Star region? A. No, and basically I wouldn't go to I would just look for

the contract files.

anything that I had around at my old desk. Q. Why would you not look in the

contract files? A. That's something that I wouldn't be

familiar with, and I would probably ask a contract person to do that. Q. do that? A. No. Sales would not -- I mean, my Have you asked a contract person to

opinion, sales would not be in the contract. Q. Where would you expect the records

of sales by Owens and Minor to be? A. If someone kept a copy of the sales

that they -- reports that they received over

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Page 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 back. Q. And did you have any files dealing case? Q. All of your files that you had in time. Anthony Amendolia I mean, there was a time naturally I I just don't remember

kept that information.

how far back I have it, if I saved what I saved, what I didn't save. Q. locations? A. Q. Uh-huh. In moving locations did any files Now, you say recently you have moved

get destroyed or thrown out? A. Q. No. In your old location, is anybody

else sitting there or is that vacant? A. Q. There is someone sitting there. Did you move all of your files and

take them with you? A. All of my files pertaining to this

your old location. A. I took some files and left some

with the United Medical contract? A. Yes.

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Page 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 8? A. It looks like an attempt to write yes. Q. What is the second page of Exhibit Q. those? A. I left them, and I think they were Anthony Amendolia And did you leave those or take

boxed and put away, to my knowledge. (Exhibit 8 was marked for identification.) BY MR. BROYLES: Q. Now, who asked you to look for the

Owens and Minor information? A. Q. A. Q. I guess it was Mike. You're talking about Mr. McGlinchey? Yes. I have handed you what's been marked

as Exhibit 7 (sic), and it's a two-page document. I direct your attention first to the second page, and we have been informed that that is your handwriting; is that correct? A. It does look like my handwriting,

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Page 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 me. Q. A. Q. That's the effective date of the -Okay. -- United Medical contract. So given that information, then it's clear to you that this would have been the Owens and Minor sales? A. system. Yeah. Anthony Amendolia down sales, I don't know from what year. For

some reason, I had to manually write this out. I don't remember why. dawn on me, but. Q. Look at Page 1 of Exhibit 8. Does that look familiar to you? I think it was from our I am waiting for it to

We had system generated reports on

what we thought were our sales for the month. Q. Now, these would be vales under the

Owens and Minor prime vendor contract, correct? A. Q. '96, I -- correct. Do you recall that the United

Medical prime vendor contract became effective June 1 of 1997? A. No. I forgot. Thanks for reminding

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Page 40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. Yes. How soon after the end of a month Anthony Amendolia

would this information be available for a given month? A. Probably a few days. We never got It was

anything the next day, I don't think.

probably a few days until everything hit. Q. Certainly before the end of the

following month? A. Q. Yes. So, for example, in April of '96,

the information for April of '96 was available before the end of May of '96? A. Q. Yeah. This document came from documents

produced to us by the government. Do you have any reason to believe this is not an accurate document of the Owens and Minor sales for the time period reflected on this document? A. No. This would have been as

accurate as we would have had, and we would have relied on it to be that accurate. (Exhibit 9 was marked for

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Page 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia identification.) BY MR. BROYLES: Q. I am handing you what the court

reporter has marked as Exhibit 9, which is a similar type of spread sheet for the National Capital region. Are you familiar with the National Capital region that existed back in the '96, '97 time frame? A. Well, I wasn't the case manager for I am not

that region, but I knew it existed.

familiar with too many details at the time, but I am familiar with the region. Q. Would this have been a report that

would have been printed out for the various prime vendor regions? was pretty standard? A. I think -- yes, I think especially Was this something that

maybe upper management may have -- and me too -- would have looked to see if there were any large fluctuations from month to month in the sales, especially dips. If there was a

dip in sales, then we would be interested to see why that dip would have occurred; that's

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Page 42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia basically what we would have used the report for. Q. Would you have had occasion to look

at the reports from other regions where you weren't the case manager or just on the regions where you were the case manager? A. I would only pull regions -- reports I would only look at other

for my region.

regions if I was asked a question or input of some type. Q. When you say pull, this was

available electronically? A. Q. Yes, I believe it was. And is it still available

electronically? A. anymore. from. I don't think the system exists I don't remember where we got it

I can't remember the system, but I

don't remember seeing it in this type of format exactly, you know, for a couple years now. (Exhibit 10 was marked for identification.) BY MR. BROYLES:

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Page 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 know. A. Q. Thanks. Exhibit 10 is an e-mail that you Q. Anthony Amendolia The court reporter -- let me

interrupt here a second. Have you ever given your deposition before? A. Q. No. Okay. If you need a break or This is not an

something, just speak up. interrogation. A. Q. I am okay.

Thanks.

If you want a drink, just let us

sent, correct? A. Q. Yes. And it has to do with the addition

of a training facility at Sheppard Air Force Base that wanted to be added to the contract? A. Q. Yes. It says, "They anticipate orders

will be well over $10,000 per year." Do you recall having a conversation as to that 10,000-dollar number? A. For any new customer that

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Page 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia 10,000-dollar number would come up in every case because in our contract it says that, you know, a customer has to have at least that much per year to be on the contract, although in some cases if it was convenient for the prime vendor, even if the dollar value wasn't $10,000, they could accept to be added -- the prime vendor could have allowed the new customer to be added if it was convenient even though it wasn't 10,000. Q. When somebody said that they were

going to have orders in excess of $10,000 per year, did you do any verification of that statement or just accept that at face value? A. We would accept that at face value. (Exhibit 11 was marked for identification.) BY MR. BROYLES: Q. I have handed you what -- this is a

document that was provided to us by the government, and it's been indicated that you probably have more knowledge of this type of document than other people we have talked to. Does this look familiar to you,

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Page 45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Okay. Exhibit 11? A. while. It looks familiar. It's been a Anthony Amendolia

I'm trying to look at it -- oh, okay. Okay. Yes, it looks familiar. I want to ask you about the

Number of beds.

column headings and what they mean, and in Column A it says -- right up at the top it has a date of 12/19/97. Is that the date this particular document was prepared? A. I would think so. I don't -- I

mean, that's not something I prepared, but -I don't think I prepared it -- but I will assume that that's the date it was prepared or the time frame. It might be the time frame

the date is applicable. Q. Then you go down two lines to Row 3

and it has a heading there Region? A. Q. A. Yes. What does the heading Region mean? Well, the region stands for what

part of the country the contracts fell under. So each contract was assigned a region.

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Page 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. A. Q. A. Yes. What does Facility mean? That would be each single customer Q. Cascades. Would that mean that it was the Cascades' region that was served by a single prime vendor? A. Q. Yes. And then you move to the right from Anthony Amendolia So, like, right under region it has

Region and it says Facility. Do you see that?

within that region that would be under the contract. Q. Is that what we have typically --

when we call something a medical treatment facility, would that be synonymous with that? A. Q. Yes. Then, again, moving to the right, it

has SVC and then BR. What does that mean? It think that would mean service or "A" meaning Army, "N"

branch of the service.

Navy, "AF" Air Force, "CG" Cost Guard.

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Page 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. A. Q. Anthony Amendolia And then the number of beds? What

does that mean on Column E? A. That would be the number of beds at

that particular facility that they would have inpatient -- they would be able to accommodate inpatient. Q. A. Q. And then -Or outpatient too. Sorry.

And then Column D is EFFDATE. What does that mean? I would think that would be the

effective date or the beginning of the contract. Q. So, for example, October 20th of

1995 would be the effective date of the Cascade region's prime vendor contract? A. Q. EST Sales. What does that mean? I would -- I guess that was the Yes. And then Column F it says First Year

estimated sales that they thought would be there for the first year. Q. Then what does Column G mean? The

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Page 48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Q. Yes. For example, under the Cascade's Anthony Amendolia heading in Column G? A. And that was a tracker, I assume, to

measure the sales as they are happening throughout the year compared to the estimate. Q. Column H is a percent that appears

to be Column G divided by Column F; is that correct? A. Q. Yes. And then Column I is number of

months left in year one, and those are a bunch of nonapplicable. Would that mean that your year one was completed? A. I guess we could assume that. I

don't know. Q.

I'm not sure why it says N/A.

Then going over to Column M, it says

Option Years, Estimated Sales. Do you see Column M?

region, Madigan facility, the estimated first year sales were $2 million, estimated option year sales were $4 million. Was that just pretty standard;

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Page 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 yes. Q. Column P, Number of Months Left in For the first option year it Sales to Date. Does that mean that this is the actual sales that have taken place in the first option year? A. That's what it would appear to be, A. Q. Yes. And it appears, looking at Exhibit Anthony Amendolia that the option year's estimated sales were twice the estimated first year sales? A. I am not sure whether that was

because it was new to ramp-up the first year or maybe there was not a full year for them to achieve the 4 million because -- there probably was a reason behind that to say that the sales are only half in the basic year than the option years. Q. That's what they did in the United

Medical contract. Do you recall that?

11, that that seems to be pretty standard. Column N is Total OPT Year

Option Year.

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Page 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia actually had been completed. For example, in

the Cascade regions, they show zero months left in the first option year. So with respect to the Cascade regions, or actually the time this is printed, '97, we're actually in the third year of the Cascade region's contract, correct? A. Q. That's what it would look like, yes. Turning to Page 2 -- we don't need

to talk about Page 2. (Exhibit 12 was marked for identification.) BY MR. BROYLES: Q. Exhibit 12, the court reporter has

handed you looks like a Power Point slide called Usage Items? A. Q. A. Q. Yes. And there is -Sorry. -- five bullet points there. Do you agree with those five bullet points that describe usage items; that those statements are true? A. Yes.

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Page 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. Anthony Amendolia And what is, in your mind, the

importance of usage data? A. Well, usage data is important so

that the prime vendor will have a good idea of what to bring into stock to be able to service the customers when they place their orders. The better usage data, the better the service. Q. Did you get involved in the Lone

Star region with the MPS and obtaining usage data for United Medical? A. Are we talking about initial usage

data or usage data throughout the contract? Q. A. Both. My involvement was to educate the

customer on the importance of it and the fact that it was due to the prime vendor. I would

not, from my vantage point, actually make up any of the usage figures; that would not be my role, but I just would make sure that the customers were aware that it was a requirement and for them if they needed assistance in coming up with usage amounts, but just, I guess, generally to make sure that the customers knew that they were to provide usage

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Page 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 data. Q. Was the usage data they were Anthony Amendolia

expected to provide historical usage data, projected usage data? A. I believe their system had both, and

they had the ability to select what they thought to be the truest number. Q. correct? A. Q. Yes. You have actually met Mr. Bandy on Mr. Bandy -- you know Mr. Bandy,

several occasions? A. Q. Yes. And he has indicated that the

initial usage data was very inaccurate that they got from the medical treatment facilities. Did you ever have any discussions with Mr. Bandy about that issue? A. Yes, I believe that we did talk

about the usage data. Q. And what do you recall about the

discussions concerning the -- his claim that the initial usage data was extremely

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Page 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 inaccurate? A. Just that -- I mean, I remember Anthony Amendolia

thinking that the possibility was there that, I mean, for whatever means that our customers used to provide the usage data, that there probably were, you know, some spikes up or down, which made it difficult for them to provide the information, and it could be that some of them were inaccurate, but done to the best of their ability, if that helps. Q. What does it mean, "Fill rate

formula is demand accommodation"? A. That I could only guess would be

that the fill rate is a measure of how the prime vendor was accommodating the demand from the customers or how they were being measured on filling those demand orders. (Exhibit 13 was marked for identification.) BY MR. BROYLES: Q. Exhibit 13 is a document that the

government provided to us, and I want to direct your attention to the last line on Exhibit 13 where the statement is made, "Again

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Page 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia routine maintenance of this usage list is essential." What is your understanding of routine maintenance of the usage list? routine maintenance of the usage list performed? A. Well, I guess, especially back then, How is

routine maintenance would have been a monthly review of the usage number that you submitted compared to what you have actually been ordering over the past month. Q. Let me ask you this: Do you

consider that routine maintenance of the usage list was essential? A. Experience showed that when routine

maintenance was performed and better communication was there, that fill rates were higher in my opinion. Q. Did you get involved in the routine

maintenance of usage data lists in the Lone Star region? A. My involvement would have been --

again, I would not have been able to come up with any numbers or monthly usage figures for

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Page 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia a customer, that would be their job to do that, but my job would have been to intervene when -- just to remind the customer that they should, you know, look at their usage if maybe they were not performing that monthly review. But also what we find is that having gone into a contract two or three or four months or by the time you're six months into a contract, the prime vendor does have their own monthly usage that they know the customer has ordered, and it's pretty reliable too. Q. sales? A. Yes. (Exhibit 14 was marked for identification.) BY MR. BROYLES: Q. I have handed you what the court That's all based on historical

reporter has marked as Exhibit 14, and it's been signed by a William E. Geesey. Do you recognize or do you know William E. Geesey? A. I remember William Geesey. I

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Page 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia believe he was at the Brooke Army Medical Center in, yep, Fort Sam Houston, BAMC. Q. On Paragraph 4 on Page 1, he says,

"Usage data provided to UMS was either inaccurate or not utilized." Do you recall seeing this letter from -- do you recall seeing before Exhibit 14? A. Yeah, I would have seen this I'm

sure, and I believe I recall seeing it. Q. He makes the basically accusation

that from the user level, usage data was broken and is being manually fixed. Did you get involved in determining, first, whether the usage data provided to United Medical was either inaccurate or not utilized? A. Q. Can you repeat? He makes the statement, "Usage data

provided to UMS was either inaccurate or not utilized." This letter is dated August 1997,

so just a few months after the effective date of the United Medical contract. The question I am asking you is

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Page 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia whether you got involved in determining whether the usage data provided to United Medical from Brooke Army was -- whether that usage data was inaccurate or whether it was not utilized? A. No, I wouldn't have been involved.

For BAMC, they were a facility that, in my opinion, were very in tune to what they had to do and what they were required, and they would have worked this issue, maybe with some guidance, but not really asking for any specific help from us. Q. He makes a statement on Page 2 in

response to the question, "If fill rate is poor, do you know the cause?" And he says, "Yes. The usage

data supplied by DPSC to UMS was either inaccurate or UMS did not properly input the data." Did you make any investigation to determine whether the usage data supplied by DPSC to UMS was inaccurate? A. Q. No, I didn't do any investigation. Now, when it says DPSC, there has

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Page 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia actually been a name change, correct? A. Q. Yes. So, as we're sitting here today,

it's basically the same entity? A. Q. Yes. Was it the job of DPSC to provide

usage data to UMS? A. The job was for DSCP -- it was

really -- the usage really was supposed to come from the customer, and we got involved when we thought we had to, maybe initially for initial estimates, but, again, they would have all been worked through customers. We would never feel the responsibility of hanging a number on an item for a customer. Q. We wouldn't do that.

Did you see evidence that the usage

that was initially given to United Medical was inaccurate? A. I think it was the best we had at

the time, and at the time we thought and we felt that it was perfectly accurate. I think

it wasn't until later on that maybe we felt that there were some inconsistences with it.

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Page 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 rate? A. Well, in the calculation of our fill the fill rate? A. Let's see. Are we talking about the A. Q. A. Yes. What is Exhibit 15? Well, it looks like a trip report Anthony Amendolia (Exhibit 15 was marked for identification.) BY MR. BROYLES: Q. The court reporter has marked and

handed you Exhibit 15. Do you recognize Exhibit 15?

that I prepared as a result of a visit to William Beaumont Army Medical Center in Fort Bliss. Q. You discuss how the killed items

affected the fill rate. How did the killed items affect

last paragraph? Q. Yes. "In conclusion we found the

killed items"? A. Q. Yes. Okay. What was the question?

How did killed times affect the fill

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Page 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A. Yes. Anthony Amendolia rate, if an item was killed, it was a knock or a hit against the prime vendor and their ability to fill the order. For example, if a customer ordered ten lines, and one of the lines was killed so they were only able to provide nine out of ten, that would have been a fill rate of 90 percent. So that one killed line would

have been a hit against their fill rate. (Exhibit 16 was marked for identification.) BY MR. BROYLES: Q. The court reporter has handed you

what's been marked Exhibit 16, which is an -apparently you got involved in an issue regarding outstanding invoices. Do you recall that? There would be several

instances of getting involved with invoices. Q. Do you recall a period of time where

there was what's been described as the failure of the mercator (ph.) translator? A. I remember that happening, yes. I

vaguely remember that happening.

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Page 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 testimony? A. I'm not sure if he was told or not. Q. Anthony Amendolia What do you recall about the failure

of the mercator translator? A. Just that there was a period of time

where we had some issues with this translator, whether it was a server, I don't really remember what it was. I don't remember the

time being very long, but I remember there being a time that there were issues with our mercator or whatever it was called, server, and just having to correct it. I don't

remember it being a long period of time. Q. Do you recall what the impact on the

prime vendors were as a result of the failure of the mercator translator? A. Well, I believe they weren't

receiving payment at the time. Q. Mr. Bandy's testimony is that

nobody -- until this lawsuit was filed, he was totally unaware of this failure of the mercator translator issue. Do you disagree with his

I don't think I would have been the one to

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Page 62 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 tell him. Anthony Amendolia I don't remember the details of why

he wasn't told. If it was something that I would have known -- but that would be something that we would share, you know, regularly with prime vendors, certainly if there is a problem. On either end, we would

expect to share that information. Q. Now, you indicated you wouldn't have

been the one to tell him. Who would you have expected to tell Mr. Bandy that there had been a failure in the payment process? A. I would think the information would

have come from the contracting side of the house, if they were aware sooner than I, because it did involve payment. To me that is more like a contractual issue, but, like I say, at the time we worked in teams where we would -- I wouldn't have had any problem to call him either on this, but I really -- I am trying to remember the situation and what happened, and there wouldn't be any reason why we wouldn't

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Page 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia call him, that's for sure. I don't remember how long of a period of time, if it was two weeks, three weeks, four weeks, six weeks; I don't think it was much longer than that. If we would have

known something like that, if I would have known something like that beforehand, we would have definitely called to try to make sure that he was aware and that he knew what we were doing to correct the problem. Q. But you have no recollection of you

yourself discussing that with him? A. Q. No. No, I don't. You're right.

Did anybody tell you back here at

DSCP that the mercator failure right be responsible for putting United Medical out of business? A. Q. No, I don't remember that. You haven't seen the internal

e-mails on that issue? A. If I did see them, I don't remember.

To me, the period of time when they weren't paid from that problem was kind of similar to their start-up invoicing issues, and as soon

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Page 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Anthony Amendolia as they got the contract, they were not able to send electronic invoices for a good month or so, and that took a while to get them paid from the very beginning. similar problem. So, in my opinion, if they were able -- first month if they were able to do okay, then I would think that another month would probably be something similar and they would have been okay. I don't think it would If I read There was kind of a

have put them out of business. that, I don't remember. Q.

If you would have read that, an

internal e-mail that said that this could put United Medical out of business, you would have notified United Medical of the problem? A. Yeah. I mean, there would be no

reason why we would prevent them from having that. (Exhibit 17 was marked for identification.) BY MR. BROYLES: Q. The court reporter has handed you

what's been marked as Exhibit 17.

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Page 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q. A. Anthony Amendolia Do you recognize Exhibit 17? Well, it's an e-mail from me, yes.

I would have to see what the story was about it. Yes. So, reading Exhibit 17, has that

refreshed your memory about what was going on on March 15, 2001 on this particular call number? A. I remember -- yeah, I remember

many details about this e-mail. Q. A. What details do you remember? Well, one of the customers, Holloman I think it

Air Force Base, placed an order.

was -- it was not a usual and typical order. It was an order that I believe they wanted to use for some type of WRM or War Reserve Material, because that would not be their usual purchases. Force base. That order that they placed, I believe I remember having trouble getting them to process their receipt for the material that they received and the payment that was They were a smaller Air

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