KBR prefers to defer electrical inspections in Iraq

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Task force re-inspecting U.S. facilities in Iraq for faulty wiring

By Lisa Novak, Stars and Stripes
Mideast edition, Sunday, November 1, 2009

Courtesy of the Department of Defense Spc. Marcus O. Nolasco was electrocuted while showering at this facility on Forward Operating Base Summerall, Beiji, Iraq, on May 18, 2004. The Defense Department has created a task force to inspect all facilities in Iraq after more than a dozen U.S. troops have been electrocuted. Included in the list are thousands of facilities whose electrical work was completed by defense contractor KBR.

Courtesy of the Department of Defense Spc. Marcus O. Nolasco was electrocuted while showering at this facility on Forward Operating Base Summerall, Beiji, Iraq, on May 18, 2004. The Defense Department has created a task force to inspect all facilities in Iraq after more than a dozen U.S. troops have been electrocuted. Included in the list are thousands of facilities whose electrical work was completed by defense contractor .

An Army task force re-inspecting thousands of potentially unsafe U.S. facilities in Iraq for faulty electrical wiring says a contractor previously ordered to conduct inspections of its own work placed 5,600 facilities on a “deferred” list — meaning they were low priority or there were no plans to inspect them.

Officials with the Defense Department’s 135-member said many of the buildings on KBR’s deferred list were still being used by soldiers. As a result, the task force moved these facilities to the top of its inspection list, according to a Sept. 8 internal memo. (Read the rest of the story here…)

US military contractor burns recyclables, violating contract

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was contracted to recycle cafeteria waste at Forward Operating Base Warhorse. Such spotty accountability is coming under new scrutiny; an Oct. 30 report reveals that transactions worth $10.7 billion are being audited.

By Tom A. Peter | The Christian Science Monitor | October 30, 2009

Forward Operating Base Warhorse, Diyala Province, Iraq

In this desert fortress of housing trailers and concrete barriers, military contractor KBR has launched a campaign – a kind of oasis in the military, an institution not exactly renowned for environmental activism.

As soldiers exit the dining facility, run by KBR and its subcontractor International Catering Services Iraq, they see signs along the emerald walkway urging those who “like to recycle” to follow the path and “Think Green.” At the end of the path, soldiers sort aluminum cans and plastic silverware into separate bins.

But there’s one problem: The recyclable goods are thrown into a pit with the rest of the trash and burned. While this is likely to disappoint soldiers who “like to recycle,” it also is a breach of the government’s contract with KBR to run the dining facility on FOB Warhorse, according to the US government’s Defense Contract Management Agency (DCMA).

The chimerical recycling program is apparently a microcosmic example of the spotty accountability under which contractors have operated – at substantial expense to US taxpayers. A report issued Oct. 30 by the Special Inspector General for Iraq Reconstruction (SIGIR) said that audits of $6.4 billion worth of contracts revealed “internal weaknesses,” including inadequate oversight of invoices and excessive change orders. The report also noted evidence of duplicate payments and payments sent to fictitious addresses and unapproved contractors.

Eyewitness account: ‘recycling’ burned in trash pit (Read the rest of the story here…)

KBR profits down 14% thanks to you!

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stock-photoWe can’t  seem to get an indictment against Bill Utt, Bruce Stanski (former KBR), Bill Bodie, or any other executives, including that damn Heather Browne. Indictments for their part in the fraud and corruption that is LOGCAP III. But we got the next best thing. WE hit them in the wallet. Because of YOU…yes YOU… the YOU who continued to report wrongdoing. The YOU who would not accept the “it’s a war zone-it’s good enough” response. The YOU who chose to do the right thing to protect our soldiers and civilians….YOU made a difference. Because of the reporting and the testifying and the increased Congressional scrutiny, the DoD appears to be backing away from their favorite “fair haired” contractor….. KBR! KBR now has to compete for contracts when eligible to bid. And they don’t seem to be winning a lot of major contracts.

I’m positive that Bill Utt and others were all doing the “KBR happy dance” at KBR HQ upon the announcement of DCAA April Stephenson’s “reassignment”. She was worthy adversary against KBR’s alleged government fraud. (click HERE for my version of the KBR Happy Dance. Do not click if you are easily offended!)

Now I can tell you there is at least one person (me) out there doing the “happy dance” that KBR profits are down 14% and their stock prices are responding accordingly.  I don’t want to hear about all the people who’s retirement accounts are affected. That’s what happens when you dance with the devil or invest in KBR!  I run the daily and annual KBR stock quotes in my right  side bar or you can click HERE to see what’s going on.

KBR 3Q falls with less work in government, Iraq

Associated Press, 10.29.09, 11:05 AM EDT

HOUTSON — Engineering and construction company KBR Inc. said Thursday its third-quarter profit fell 14 percent as revenue declined in its biggest business, government and infrastructure, and in its military work in Iraq as the U.S. has fewer projects there.

Net income of $73 million, or 45 cents per share, was down from $85 million, or 51 cents per share, in the same quarter last year. Analysts surveyed by Thomson Reuters expected earnings of 41 cents per share.

Revenue for the quarter ended Sept. 30 was $2.84 billion, down 6 percent from $3.02 billion in the same three months of 2008.

Analysts expected revenue of $2.92 billion.

Revenue at KBR  ( KBR -  news  -  people )’s government and infrastructure business fell 28 percent to $1.38 billion from $1.76 billion.

Bill Utt, chairman, president and CEO, said revenue for the Army’s Logistics Civil Augmentation Program, or Logcap, was down 15 percent in the quarter, “consistent with reduced activity levels in Iraq.”

On Monday, Stifel, Nicolaus downgraded KBR to “Hold” from “Buy” on an assessment that profit could decline significantly this year as the U.S. military becomes less active in Iraq.

Backlog at the end of September was $13.5 billion, up 9 percent from the second quarter with “no material project cancellations” during the quarter, KBR said.

Shares of KBR slipped 8 cents to $21.13 in morning trading.

Pentagon Investigating Iraq Electrocution Death-Adam Hermanson

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Updated October 30, 2009: Click HERE to read the full letter from Under Secretary of Defense Ashon B. Carter sent in response to Rep Carol Shea-Porter’s letter dated September 17, 2009 with regards to Adam Hermanson’s death. (click HERE for Rep Carol Shea-Porters letter)

Pentagon Investigating Iraq Electrocution Death

By Jeremy Scahill

October 28, 2009

The Department of Defense has confirmed that the US Army Criminal Investigation Command has launched a formal investigation into the electrocution death of 25-year-old Adam Hermanson, a US Air Force veteran-turned private security contractor who died in a shower at the compound of his employer, , at Camp Olympia inside Baghdad’s Green Zone on September 1, 2009. The State Department’s Regional Security Office is also investigating.

The DoD appears to be placing responsibility for the deadly incident squarely on Triple Canopy. “As part of the terms and conditions of the JCC-I/A contract, Triple Canopy is solely responsible for providing billeting, showers, latrines and other life support activities to its employees at Camp Olympia,” according to Under Secretary of Defense Ashton B. Carter. Hermanson is the nineteenth US soldier or contractor to die from electrocution in Iraq since 2003.

Carter said that the US military’s “initiated a formal shock investigation” of the incident the day after Hermanson’s death and issued a report a week later, on September 7. “TF SAFE’s preliminary investigation results found grounding and bonding deficiencies,” Carter wrote in a letter dated October 19 to Reps. Jan Schakowsky and Carol Shea-Porter, a copy of which was provided to The Nation. “The overall assessment of the electrical system revealed that major repairs were required to bring the systems to a safe standard. The TF SAFE investigation will remain open until the facility repairs are completed and re-inspected.” Carter added that the Joint Contracting Command-Iraq/Afghanistan “issued a cure notice to Triple Canopy” on September 4 informing the company that its electrical wiring was “inadequate.” Triple Canopy, he said, had responded and that its facility is currently under review. (Read the rest of the story here…)

Thoughts from a “Ms Sparky” reader on “Hire Americans First”

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Back in April I published a post entitled “How About A Hire American Act“.  I have always been a staunch believer that US taxpayer dollars should go to support the US first and that all projects funded with US taxpayor dollars should hire US citizens before hiring local nationals and then other foreign nationals. To me it has always been black and white…I’ve never really been much of a “grey” person.

Below is an email I got from a reader. I can honestly tell you I have no idea who sent me this email. But I can say that even though I’m an electrician and not an economics major, they wrote it in an easily understandable  manner.

They went to a lot of effort to TRY to get me to think outside my perfectly square little box (because that’s the only kind of boxes there should be-LOL) to see things from a different perspective. The amount of effort and thought in itself deserves mention. Many thanks-whoever you are!

Believe me when I say I do understand and respect your “Hire Americans Act” blog which I read some time ago and therefore like everyone else the following blog is simply an “opinion” and not meant to procure sarcasm or smart remarks from any of the other bloggers.

This excellent site if I am not mistaken was originally focused on for very good reasons I might add the reported widespread abuse of the policy and procedures, safe working practices and code of ethics of a certain US based (Houston) aka “Cayman Islands” company or at that time “Companies” before they split up for legal reasons (Law Suits).

Moving on I take my hat off to the continued hard work and effort put in by “DC” aka “Ms Sparky” in order to uncover many of the disgusting activities carried out by various US DoD contractor companies. We have since seen this site develop into an extremely informative and often tragic source of information for many expatriates around the globe.

It did however surprise me to read one comment written by a blogger who asked “What do these people do for the American Economy” which I believe was directed at Foreign Nationals. Where are we going with this verbal diatribe? Why is it some folk cannot see past their nose?

Has anyone heard of International, Halliburton, Bechtel, Parsons or perhaps BAE Systems the UK’s largest arms producer who recently pleaded guilty to bribery allegations and dishing out millions of Euros to win lucrative defense contracts in a number of countries?

Hello!! Are these other giants corrupt? Hell Yes! But no more than most other military or civilian contractors around the world who are just as adept at Fraud, Waste and Abuse as the next guy but they do employ thousands of hard working people from All over the world who All contribute to the “Global Economy”.

Should they be allowed to get away with it? Of course not my gripe is an economic one rather than a criminal one at this point, but do not go off on a tangent beating me up I do care greatly about the ethics side of the house but that is not what this blog is about.

If there are issues then they are probably leadership issues and unfortunately you will never clean house as long as the senior management of these influential companies are ex Generals Etc.

We have to face the facts that hopefully law makers such as but not limited to Sen. Dorgan and Sen. Franken will continue to kick ass and publicly expose the corrupt practices of certain companies and individuals who must be held accountable for their actions and prosecuted accordingly. However, we all know none of these corporations are going away anytime soon therefore team players such as Ms Sparky can only persist in chipping away at their armor and hope others take notice.

Having said this I believe it would be in everyone’s interest to take a few steps back and look at the broader economic picture rather than simply focus on pointing fingers or firing off negative statements regarding the so called Foreign Nationals employed by US DoD contractors in various locations.

We all have our part to play in the “Global Economy” I’m sorry but this is not just about jobs for US citizens. There are hundreds of International companies based all over the world employing a multi-national workforce from oil fields and aerospace to Medicare and the Auto Industry many of whom employ a great number of Expat American citizens within there workforce and each of us in some way contribute towards each others national economy one way or another.

Please take time out to read the information below but I would ask that we do not start “Nit Picking” about each others economy or why X countries makes more than Y… it is simply a random example of bilateral trade figures which every country needs to survive especially in today’s economic climate.

There can be anywhere up to 500,000 US citizens in the United Kingdom at any one time these are government statistics and proven facts which is common knowledge and has nothing to do with a security issue just in case anyone wanted to chime in there… the numbers alone speak volumes and indicate contrary to popular belief just what an outstanding relationship both these nations actually have with each other regardless of the otherwise ignorant statements from some minority groups.

Furthermore approximately 5.25million Americans live/work in 160+ countries around the world NOT including US military for obvious security reasons.

The estimated figures by region are:
• Africa: 109,600
• East Asia and Pacific: 754,000
• Europe: 1,488,000  If all these Americans were placed in one state it would be the 17th most populous state in the US!! More or less…let’s not split hairs folks.
• Near East: 586,000
• South Central Asia: 97,000
• Western Hemisphere: 2,222,000
• For a total of 5,256,600

Where is the outcry from these areas demanding all Americans go home and give the positions to host country nationals? Probably little or nothing which is a good thing because I have to admit a lot could be attributed to the need for technical expertise and overseas experience especially when it involves working to Code where there can be NO substitute for that. Nevertheless there are a lot of well qualified candidates out there who deserve the same chance as anyone else in the job market regardless of nationality and I am not talking about the inevitable deadwood that always manages to float onto the scene on most overseas contracts.

Here are a random number of average US/EU/UK bilateral trade figures and other relevant information past and present if anyone cares to mull over covering an approximate 3 year period:

Please bear with me Ms Sparky I really am on your side I just want other people to see the bigger picture.

EU Membership: The EU has prioritized membership for the Western Balkans, Croatia, Macedonia and Turkey they are all formally acknowledged candidates.

The United States strongly supports Macedonia’s aspirations for full integration into Euro-Atlantic institutions. Today, Macedonia and the United States enjoy a cooperative relationship across a broad range of political, economic, cultural, military, and social issues.

In the first five months of 2008, total trade between Macedonia and the United States was $37.6 million. U.S. exports accounted for 1.2% of Macedonia’s total imports. U.S. meat, mainly poultry, and electrical machinery have been particularly attractive to Macedonian importers. Principal Macedonian exports to the United States are tobacco, apparel, footwear, and iron and steel.

The U.S. economic relationship with the European Union (EU) is the largest and most complex in the world, generating trade and investment flows of about $2.7 billion a day and supporting 14 million jobs. This enormous volume of transatlantic trade and investment promotes economic prosperity on both sides of the Atlantic and in the dozens of other countries that trade with the transatlantic partners. The United States and the EU continue to pursue initiatives to create new opportunities for transatlantic commerce.

The EU countries with the largest FDI (Foreign Direct Investment) in the United States are the United Kingdom, Germany, the Netherlands, and France.

Investment: U.S. and EU investors together owned roughly $2.7 trillion in direct investment in each other’s economy in 2007.

Sales of services in the EU by majority U.S-owned affiliates were $402.5 billion in 2006 (latest data available), while sales of services in the United States by majority EU-owned firms were $336.0 billion. Intrafirm trading – trade that takes place within the same company – accounts for approximately one-third of total U.S. trade with the EU.

US – UK TRADE AND INVESTMENT STATISTICS

Trade in goods
The United Kingdom is the United States’ sixth-largest trading partner overall and second-largest
trading partner in the EU (after Germany). The United States is the UK’s top export destination and
Its second-largest trading partner overall (again after Germany).
Annual bilateral trade volume has increased steadily, reaching a record $112 billion in 2008 ($58.6
Billion from the UK to US, $53.8 billion from the US to the UK). The US-UK trade relationship in goods is remarkably balanced.

Trade in services
The United Kingdom is the United States’ largest partner for trade in services. Total services trade
between the two countries was worth $110.5 billion in 2008: from 2007 to 2008, trade in services
between the US and UK increased by 4.5%.

Jobs
•?In 2006 American affiliates of British companies supported an estimated 908,800 American jobs
providing an average compensation of $71,803.48.
•?Top 5 states by employment (with corresponding investment figures*) were:
•?California (98,200 jobs; $16.5 billion invested)
•?New York (74,500 jobs; $15.8 billion invested)
•?Texas (69,000 jobs; $19.2 billion invested)
•?Illinois (49,700 jobs; $7.4 billion invested)
•?Pennsylvania (49,600 jobs; $6.1 billion invested)

*Investment figures measure total property, plants and equipment owned by British companies in these
states.

I spent 31/2 years in Iraq so I know where you guys are coming from my point is we all need to learn to work together regardless of our nationality or ethnic background and of course I agree there needs to be a huge weeding out program and a solid process to regulate these companies in order to stem the continued dollar generated practice of hiring unqualified cheap TCN labor which can ultimately and in fact has resulted in the loss of military and civilian lives.

Here is a novel idea, why not implement some serious oversight at the pre-hiring level by placing “Qualified” recruiters at the desks to screen and hire “Qualified” people rather than the “good old buddy system” where a journeyman might be overlooked in favor of a wallflower who actually knows jack about the trade but I guess that would be just too easy right!!

“I’m just saying”….

Thanks for your time and keep up the great work ma’am.

“Observer”

Hmmm. That definitely gives me something more to think about!!

Ms Sparky

Posted in Miscellaneous. 7 Comments »

Adam Hermanson’s family still seeks answers

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Terror In Iraq

Local Woman Seeks Answers About Her Husband’s Death

Barbara C. Barrett
POSTED: October 27, 2009

adam-hermansonMUNCY – On September 1 at 11:30 in the evening, Janine Hermanson received a phone call from the US Embassy in Iraq that her husband, Adam Hermanson was found dead in the shower. No explanation was given other than the fact that he was electrocuted because they found burn marks on his arm and hand. They were only married for three months.

Since then, Mrs. Hermanson has been on a mission to find out what really happened to her husband in Iraq. She said that this has not been the first time this has happened to contractors working overseas. She has uncovered over 280 electrocutions to Americans since 2003 in Iraq and Afghanistan. “My husband is the 19th electrocution death in Iraq and that includes service members and contractors,” she said. “Others have occurred in swimming pools, washing hummers in car washes, and just from washing their hands,” she explained. He was doing what many of us do everyday when he died, taking a shower. He was working as a supervisor for a security contractor in Baghdad’s Green Zone since July 6, 2009 for a company called . The company, headquartered in Herndon, Virginia hired him to be a mercenary since he was no longer employed by the Air Force. He was not allowed to discuss his job with his family while he was employed in Iraq she said.

The Hermansons met while they were serving in the Air Force in Utah in 2003.

“I know very little,” she added. “No one has been able to give me the information I want. The privacy laws are keeping me from getting information from the company. They said there was no foul play involved. I can’t help but be suspicious of such an untimely death. His life was taken from me. It’s just not right. He was going to come home in November.”

An autopsy was done at the Dover Air Force base in Delaware. The medical examiner said that the toxicology reports are pending. In speaking with others who had similar cases, Hermanson discovered she wasn’t alone. “Others have been electrocuted at different camps and as I keep doing the research more cases are being revealed, and I think the government is keeping it a secret,” she said.

Hermanson is working with the Department of Defense and Senator Bob Casey’s office in Harrisburg. She also hired a law firm from Philadelphia that specializes in these types of cases. Her investigation has also been handed over to the ARMY CID (Criminal Investigation Division) and she is hoping to get answers this week.

Senator Casey said he has been working on this issue for some time and recently passed an amendment (FY2010) through the Department of Appropriations that requires inspections on any contract work paid for by taxpayers.

“I want to prevent this from happening again. This shouldn’t keep happening. This is shocking. I’m going to find answers no matter how long it takes, even if it is for the rest of my life,” she vowed. “I’m tired of people not talking. I have every right to know what happened to my husband.”

The couple had plans to permanently reside in Muncy after Adam was deployed. (click HERE for the original article)

If you have information regarding the death of Adam Hermanson please contact me by clicking HERE. For those of you who have come forward with information THANK YOU!!!

I am working on another post on Adam Hermanson. It should be published in a couple of day.

Ms Sparky

DCAA’s April Stephenson farewell email to staff

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From: Stephenson, April, Ms, SES DCAA
Sent: Monday, October 26, 2009 1:08 PM
To: DCAA ALL DCAA Distribution List

Subject: New Director DCAA as of November 9, 2009

To All DCAA Employees

Below is an email message from the Honorable Robert Hale, Under Secretary Defense (Comptroller) announcing my reassignment to a senior executive position in the Comptroller’s office effective November 9th.  Mr. Patrick Fitzgerald, Director of the Army Audit Agency will be appointed Director, DCAA effective the same day.

I would like to take this opportunity to thank the employees of DCAA for their tireless efforts in auditing contractor costs.  As Mr. Hale mentions in his email below, DCAA plays a critical role in the acquisition process.  Without the efforts of all DCAA employees, billions of dollars of contractor overpayments and unallowable costs would go undetected.

FY 2009 was a challenging year with the implementation of many improvements across the Agency.  I appreciate the dedication and can-do attitude of the DCAA workforce.   The many employee suggestions received throughout the year were essential in developing new initiatives and refining prior processes.

Although I will be moving on to new challenges, the employees of DCAA will always be in my heart.

April G. Stephenson
Director, DCAA

E-MAIL TO DCAA EMPLOYEES FROM MR. HALE

I want to announce that Mr. Patrick Fitzgerald, currently the Auditor General of the Army, will be taking over as the new DCAA Director.  Mr. Fitzgerald is a CPA and has almost 30 years of audit experience.  He has an excellent reputation as a successful manager of large, geographically diverse audit organization.  He currently heads the DCAA Oversight Committee, a group that I set up to help me provide oversight.    I believe that Mr. Fitzgerald is particularly well qualified to guide DCAA during this period.  He will take over as DCAA Director effective on Monday, November 9, 2009.

I want to thank Ms. April Stephenson for her service at DCAA, mostly recently as its Director.  During her tenure as Director, Ms. Stephenson implemented a number of changes that will provide the foundation for improvements at DCAA.  After leaving DCAA effective November 8, 2009, Ms. Stephenson has accepted reassignment to an SES position on the staff of the Office of the Under Secretary of Defense (Comptroller).

DCAA remains a critical part of the acquisition process.  The strong and capable staff at DCAA, coupled with hard work from all of you, helps DoD acquire the best goods and services for our warfighters at reasonable prices.  We must carefully address the concerns raised about DCAA in recent reports issued by the GAO and the DoDIG.  I want to work with Mr. Fitzgerald and the Agency’s employees to address those concerns in ways that strengthen the organization and permit it to continue performing its important role.

Thank you for your continued service.

Robert F. Hale
Under Secretary of Defense (Comptroller)