DCMA Accepts KBR’s Corrective Action Plan-1 year later

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Almost one year and who knows how many revisions later KBR finally submits a Corrective Action Plan (CAP) the DCMA can accept. On September 11, 2008 the DCMA issued a Level III Corrective Action Request (CAR) # HQ-08-LOGCAP-001 LIII to KBR for their Deficient Quality Systems with regards to electrical maintenance and installations. (Click HERE to read that original post)

From the CAR:

a. This enclosure documents two overarching findings of nonconformance:

i. Grounding and Bonding: KBR’s quality system failed to properly identify and systematically correct facility grounding and bonding deficiencies…..

ii. Quality System: KBR’s Inspection/Quality Control System failed to identify and systemically correct numerous Program-wide deficiencies……

Click HERE to read Corrective Action Request (CAR) # HQ-08-LOGCAP-001 LII. Rumor has it this CAR actually started out as a Level IV. It was that serious. But in usually LOGCAP fashion, the DoD succumbed to pressures and lowered the level.

I do not have the final Corrective Action Plan as of yet. As soon as I get it I will post it. If you have it please email it to me.

This CAR was issued after the facts were revealed surrounding the true manner in which SSG Ryan Maseth died. He was electrocuted in his shower due to shoddy electrical work. Specifically improper grounding of the water pump in his building at Radwaniah Palace Complex.

Although the CAP for this CAR has been accepted, this does not mean business as usual for KBR.  They have to consistently adhere to the conditions of the Corrective Action Plan (CAP).  This Level III  CAR and the CAP are a permanent DoD documents.

So…if you have that CAP please send it. If you have information about KBR violating this CAP, please let me know so I can pass it on. I’m sure I will be blogging more about this.

Ms Sparky


North To Alaska

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Blogging and researching KBR and the DoD at least 6 days a week for the last 15 months tends to wear a girl out! So I decided to kidnap my husband  and take him on a 7 Day Alaskan Cruise. Not having cruised before (an icebreaker to Antarctica does not count as a cruise!) I had no idea how to compare the different cruise lines. So I chose a balcony stateroom on the Norewegian Star based on home port, ports of call and cruise dates.  I was not disappointed in the least. When cruising to Alaska, a balcony room is a must!

The Norwegian Star

The Norwegian Star

The ports of call were Ketchikan (my favorite), Juneau, Skagway and Prince Rupert, BC. We sailed up the Tracy Arm Fjord to see Sawyer Glacier. The glacier had “calved” the day before and we were not able to get as close as we would have otherwise. There were too many large bergs in the water.  Even with that…the scenery was amazing and there were whales swimming next to the ship.  I got to watch them right from the comfort of my balcony!

Sawyer Glacier

Sawyer Glacier

We weren’t too interested in the majority of the shore excursions but we did decide to go on the White Pass & Yukon Route RR tour in Skagway. This is a narrow gauge railroad built in 1898 during the Klondike Gold Rush and is an International Historic Civil Engineering Landmark, a designation shared with the Panama Canal, the Eiffel Tower and the Statue of Liberty. We went as far as Whitepass at Frasier, BC and back which was about a 4 hour ride. The ride was very interesting and gave me a new appreciation for what the gold miners were willing to endure for a shiny gold rock!

White Pass & Yukon Route RR

White Pass & Yukon Route RR

Here is a bit of Alaska trivia for you. Alaska is twice as big as Texas, 8 times larger than Washington State. It consists of 582,412 square miles of land, 6,640 miles of mainland coastline. (33,904 miles counting the islands.) Alaska contains 17 of North America’s highest mountains with Mt McKinley being the highest at 20,320 ft. Alaska has more than 70 active volcanoes, 3,000 rivers, over 3 millions lakes (yes million) and more active glaciers and icefields than anywhere else in the inhabited world. (from US Forest Service Pub R10-RG-145) There are still over 100,000 glaciers in Alaska!

alaska-map1

I thought this photo showed great perspective on just how big Alaska is.

I will be going back to Alaska and I will be going on another cruise. Any cruise line comparisons to Norwegian would be appreciated.

I would like to thank “Forseti” for blogging the KBR news for me while I was resting up. I do hope Forseti will continue to “guest blog” on Ms Sparky.com. Foresti’s experience and insights have been a great addition to the site.

I just wanted to share a little of my vacation with you. I’m all rested up and ready to hit it hard on Monday!

Ms Sparky

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Trouble in Paradise?

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KBR CFO leaving, eyes alternative fuels investment

Fri Aug 28, 2009 6:39pm EDT
* Joined KBR as CFO in June 2008

* Seeks opportunities in alternative fuels venture capital

SAN FRANCISCO, Aug 28 (Reuters) – KBR Inc’s (KBR.N: Quote, Profile, Research, Stock Buzz) chief financial officer is leaving just over a year after joining the company to pursue interests in alternative fuels investments, the engineering and construction company said on Friday.

The departure of CFO Kevin DeNicola marks the second executive departure for KBR this year. , the former president of its government and infrastructure division, left to join larger rival Fluor Corp (FLR.N: Quote, Profile, Research, Stock Buzz).

KBR said DeNicola, who joined the Houston-based company in June 2008, would step down as CFO after its third-quarter results are filed, but stay on board to help with the transition for his replacement.

“I wish to focus the next chapter of my career pursuing venture capital opportunities in the alternative fuels area,” DeNicola said in a statement.

DeNicola, who had previously been CFO of bankrupt Lyondell Chemical Co, serves on the board of Dallas-based bank Comerica Inc (CMA.N: Quote, Profile, Research, Stock Buzz). (Reporting by Braden Reddall; Editing Bernard Orr)

Link to the original article

There sure does seem to be a lot of attrition at the executive level, doesn’t there?  This is the second CFO to throw in the towel, in a very short time-frame.  Cedric Burgher resigned in March of 2008 and Kevin DeNicola came on-board in June 2008.  What’s up with that, Chief Financial Officers seem to be dropping like flies on Clinton Drive?  I did see that KBR stock has been downgraded from buy to neutral, maybe there is more to this story than pursuing other interests and devoting time to family?

Then of course Bruce Stanski resigned “abruptly” in March 2009, and slithered on over to Fluor.  I would still like to know why the SEC is not actively investigating the potential conflicts of interest and ethics violations on that one, or the DoD for that matter.  If anyone has any insight on the rest of the story I would love for you to share!

Forseti

Change starts with you and me! 

Toxic Chemicals, Noxious Fumes – We Delivered

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The New Gulf War Syndrome

Soldiers in Iraq and Afghanistan are in danger from toxic chemicals, yet most don’t know what they’ve been exposed to or where to get help.

By Nora Eisenberg, The Guardian – Posted on November 11, 2008

What does a war injury look like? In the case of Iraq, we tend to picture veterans bravely getting on with their lives with the help of steel legs or computerized limbs. Trauma injuries are certainly the most visible of health problems — the ones that grab our attention. A campaign ad for congressman Tom Udall featured an Iraq war veteran who had survived a shot to his head. Speaking through the computer that now substitutes for his voice, Sergeant Erik Schei extols the top-notch care that saved his life.

As politicians argue about healthcare for veterans, it is generally people like Sgt Schei that they have in mind, men and women torn apart by a bullet or bomb. And of course, these Iraq war veterans must receive the best care available for such complex and catastrophic injuries.

Unfortunately, the dangers of modern war extend far beyond weapons. As Iraqis know only too well, areas of Iraq today are among the most polluted on the planet — so toxic that merely to live, eat and sleep (never mind to fight) in these zones is to risk death. Thousands of soldiers coming home from the war may have been exposed to chemicals that are known to cause cancers and neurological problems. What’s most tragic is that the veterans themselves do not always realize that they are in danger from chemical poisoning. Right now, there is no clear way for Iraq war veterans to find out what they’ve been exposed to and where to get help.

In October, the Military Times reported on the open-air pits on U.S. bases in Iraq, where troops incinerate tons of waste. Because of such pits, tens of thousands of soldiers may be breathing air contaminated with burning Freon, jet fuel and other carcinogens. According to reports, soldiers are coughing up blood or the black goop that has been nicknamed “plume crud”. (Read the rest of the story here…)

Deep Pockets, Greasing Wheels – Mr. Utt Goes to Washington

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KBR paid firm $210K to lobby in 2Q

Associated Press  – WASHINGTON, D.C. – August 29, 2009 – Engineering and construction company KBR Inc. paid a lobbying firm $210,000 in the second quarter to lobby Congress and the Department of Defense, according to a recent disclosure form.

McKenna, Long and Aldridge lobbied on issues related to reconstruction in Iraq and Afghanistan and Pentagon contracts in the April-June period, the Washington firm said in a July 20 filing with the House clerk’s office.

Houston-based KBR does not lobby directly, spokeswoman Heather L. Browne said Friday.

“KBR’s work with Congress and the Senate is on a more direct basis with committees or members who request information of the company for hearings, rather than direct lobbying,” she said in an e-mail.

McKenna, Long and Aldridge helped compile information presented at congressional meetings and hearings attended by KBR officials, she said.

KBR’s work in Iraq has occasionally been criticized and investigated. Earlier this month, the Defense Department said no criminal charges would be filed against the company in connection with the electrocution of a Green Beret soldier showering in his barracks in Iraq.

KBR said it informed the military of the absence of grounding and bonding in the structure where the soldier died.

Also earlier this month, the Commission on Wartime Contracting examining waste and fraud criticized KBR for resisting government oversight and failing to cut costs on support work in Iraq.

William Walter, KBR’s senior vice president for government compliance, said the disagreements over contract charges were differences in judgment.

KBR is the primary support contractor in Iraq, providing troops with services such as housing, meals, mail delivery and laundry. The company has been paid more than $32 billion since 2001.   Link Original article

This is not the first time that KBR has paid lobbyists to fight their battles and win over the hearts and minds of elected officials, according to the press.   In July of 2008 Politico did an article “KBR plans PR offensive to restore image” after the first hearing on the at , Iraq.  This article discusses David Marin and the and also mentions the Professional Services Council, whose membership is the virtual Who’s Who  of government contracting. 

One has to wonder if these fees are reimbursable expenses.  Whatever money bucket is dipped into; the taxpayer is helping to foot the bill, directly or indirectly, for KBR to hire these silver tongued devils to champion their cause on Capital Hill. 

Some of you may also remember the grassroots attempt made by , back in the day when the names Halliburton & KBR were interchangable. Lesar sent out a memo titled “Defending Our Company” and asked employees to defend the company by sending letters to the media.   I have asked for a copy of the original email and I will post it when it is received, or if someone has a copy please forward it to Ms Sparky’s email.

Here’s a novel idea for KBR - - Try doing the work that you were tasked to do in your contract with ethics and integrity.  Then perhaps you wouldn’t have to hire PR firms & Lobbyists, to improve your public image, or spend so much time in front of lawmakers defending your actions against allegations of wrongdoing.

Forseti

Change starts with you and me! 

NEW AND IMPROVED or Just The Same Old Crap?

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KBR Announces Formation of Government, Defense and Infrastructure Business Group

HOUSTON–(BUSINESS WIRE)–KBR (NYSE:KBR) today announced the formation of a Government, Defense and Infrastructure Business Group. The new business group will serve existing and future customers in North America, the Middle East, United Kingdom and Australia.

“After evaluating the various strategies, customers, activities and projects within KBR’s current Government and Infrastructure Business, it was determined that the current Government and Infrastructure Business should evolve to become a Business Group which oversees KBR’s activities in the Government, Defense and Infrastructure markets,” said William P. Utt, KBR Chairman, President and CEO.

To correspond with the creation of KBR’s Government, Defense and Infrastructure Business Group, the following appointments have been announced.  Bill Bodie, currently Senior Vice President for Government and Infrastructure Customer Relations & Strategy, has been appointed Senior Vice President, North American Government and Defense. In his new role, Bill will oversee the new North American Government and Defense Business Unit which will be responsible for KBR’s activities on behalf of U.S. and other North American government and defense customers.  Colin Elliott, currently Vice President for Government and Infrastructure’s Asia Pacific operations, has been appointed as Senior Vice President, Infrastructure and Minerals. The new Infrastructure and Minerals Business Unit will oversee KBR’s existing global infrastructure activities in Australia, North America, the United Kingdom and the Middle East. Colin will also oversee and coordinate KBR’s global activities in the minerals business.

Andrew Pringle, currently Vice President for Government and Infrastructure’s Europe, Africa and Middle East Government and Defence business, has been appointed Senior Vice President, International Government and Defence. In his new role, Andrew will be responsible for non-North American Government and Defence activities, including KBR’s present defence activities for the UK Ministry of Defence and the Australian Department of Defence.

KBR is a global engineering, construction and services company supporting the energy, hydrocarbon, government services and civil infrastructure sectors. For more information, visit www.kbr.com.

KBR
Director, Communications
Heather Browne

Or

Director, Investor Relations
Rob Kukla, Jr.
(To read the original press release click here.)

It has been so quiet, the Google Alerts just aren’t hitting my inbox and brightening my day, or at least giving me something to rage about lately.  So when this hit my inbox today, I eagerly opened it in anticipation that a new dirty little secret would be unveiled before my eyes!  Ho Hum, a brand new name for the same old snake oil; perhaps it is time to offer their corporate branding team the choice of “chicken or pasta.”  Just another old and tired marketing gimmick, or is it something more sinister?  Do they really think that changing the name of the old scandal plagued Government and Infrastructure Group to the “new and improved” Government, Defense and Infrastructure Business Group is going change the public’s perception?  Here’s a thought if you are going attempt to improve your image, why not try another oldie but goodie like 50% more included, at no extra charge, you might get the taxpayer’s attention with that one.

Sorry until I see the “Under New Management” sign hung out  at Clinton Drive and then I read about the indictments of everyone accountable for the alleged crimes that have been committed against the American people and our soldiers, I am not buying any of the BS rolling off your collective tongues!

Forseti

Change starts with you and me!

So Many Hearings – So Little Change

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There have been so many hearings held in Washington DC to discuss KBR’s issues it’s getting hard to keep up with them. If it were Hollywood, KBR would have a star on the ‘Walk of Fame’. This isn’t Hollywood and the only star KBR deserves is on the ‘Walk of Shame’, for their alleged negligence and wrongdoing.

I count nearly 30 hearings since 2003 held by House and Senate Committee and Subcommittee Chairs including Byron Dorgan, Henry Waxman, Claire McCaskill and others. I don’t know about you but every time one of these hearings is held and another facet of horrific wrongdoing comes to light, I think “Okay finally something is going to happen!”. The press goes nuts and there are articles everywhere about the “notorious contractor” involved. Within days, the press dies down and another contract is awarded to the same “notorious contractor”. Where is the incentive to do the right thing on the contractor’s part? They get a verbal spanking and then are rewarded with another contract, meanwhile the money keeps rolling in and KBR is laughing all the way to the bank.

Now there is a new kid on the block – The Commission on Wartime Contracting. Perhaps this Commission and its Co-Chairs Christopher Shays and Michael J. Thilbault will be given the chops to administer the high colonic the government contracting system so desperately needs. The hearings held on August 11 and 12, 2009 appear to be first of many to come for “The Big Three”. The LOGCAP IV ‘Big Three’ KBR, DynCorp and Fluor, and the contract administrators DCAA, DCMA and ACC were told to come back in 60 days and provide the Commission with an update and solutions.

Here is my wish list for the follow-up hearing, based on the discussions that occurred August 11-12:

1.  DCAA, DCMA and ACC are to play in the sandbox together, share information and work cooperatively with each other.

  1. Is the Commission going to follow up with the Committees and Subcommittees that have previously uncovered atrocities committed by contractors and their employees?

2.  Contractors working together during the transition from LOGCAP III to LOGCAP IV.

  1. Is the Commission going to hold KBR’s feet to the fire on this? Will they force KBR to stop sabotaging their replacements as alleged? The safety and support of our soldiers during these transitions should be the primary concern.
  2. Hiring practices – It seems as if the ‘Retired Generals Club’ has caused more failures than successes at KBR and Dyncorp. What is the motive of these contractors? Intimidation? What ACO (usually a Captain) is going to stand their ground with a General, active duty or retired?

3.  Contractor waste, fraud and abuse.

  1. Does the commission have subpoena power?
  2. Will the DOJ investigate and indict based on the Commission’s findings?
  3. When will someone call KBR on the carpet for not disclosing the results of their internal investigations? Allegedly, KBR knew, condoned and covered up findings. This may have cost lives!

Finally the Commission on Wartime Contracting has a Comment Line and they do respond. I urge people with information that will help The Commission put an end to the organizations and individuals who are committing violations and crimes to use this resource. They cannot stop something they don’t know about.

Contact the commission at:

http://www.wartimecontracting.gov/index.php/commentline

or

http://www.wartimecontracting.gov/index.php/contact

Forseti

Change starts with you and me!