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AECOM overcharges by 16,000 percent and is still awarded new contract

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There are not enough hours in the days to track the fraud of every DoD contractor. But thanks to Ms Sparky readers they keep me informed. The 16,OOO percent I referred to in the post title is the mark up charged for the bag of 10 washers. Let me know if I did the math wrong!!

Audit finds Iraq contractor overbilled for vehicle parts

By Walter Pincus
Washington Post Staff Writer
Friday, October 30, 2009

burning-moneyA defense contractor that supplied vehicle parts for the Iraqi army sought reimbursements from the U.S. military far in excess of the cost of the items, according to a new report by the special inspector general for Iraq reconstruction.

The contractor, Government Services, charged $237 for a vehicle side mirror that was supposed to cost $14.88, according to the report. The company also submitted invoices to the U.S. military in Iraq seeking reimbursements of $196.50 for a bag of 10 washers that was supposed to cost $1.22, $10 for a fuse that should have cost 45 cents and $210 for an inner tube that was supposed to cost $24.09.

Aecom officials disputed the allegations, telling auditors that the overcharging was the result of “billing errors” that “occurred early in the contract,” according to the report, scheduled for release Friday. The company said that “cumulative adjustments were made.”

Paul J. Gennaro, a senior vice president of Aecom, said Thursday that the company had “self-identified and corrected” the issues, “making an immediate repayment over two years ago — to the client’s satisfaction.”

Stuart W. Bowen Jr., the special inspector general, said in the report that the findings point to larger issues with government contracts issued for work in Iraq. Preliminary audits of 22,000 Defense Department transactions involving about $10.7 billion have identified not just overpayments by the government, but also duplicate payments, as well as payments to fictitious vendors and addresses.

The preliminary findings have prompted a decision to examine all financial transactions related to the major U.S. programs in Iraq — spending that totaled $35.2 billion as of Sept. 30, 2008. The report said particular attention will be paid to programs “that afford easy access to cash,” such as the military’s $3.6 billion Commander’s Emergency Response Program.

Aecom Government Services’ contract called for it to buy repair parts for Iraqi military units as part of a program to make the units self-sufficient in logistics. The firm won the contract based in part on the per-item unit price it quoted, plus an allowable markup.

Bowen’s auditors reviewed four of 139 invoices Aecom submitted for repayment from July 2005 to September 2009; they totaled $29.9 million. From those, the audit identified “about $4.1 million in potential overbillings.”

The auditors disputed assertions that Aecom had repaid the government in full. In an interview, Daniel Kopp, a spokesman for Bowen, cited the case of the washers.

“Based on the documentation Aecom provided us, they’ve never reimbursed the government for the washers,” he said.

Contractors such as Aecom have their invoices reviewed by Army Contracting Command personnel in Rock Island, Ill. But Bowen’s auditors found that the command “did not have enough experienced personnel to review invoices thoroughly, leaving the U.S. government vulnerable to undetected overcharges.” Over time, additional personnel were transferred to Rock Island, and the review process improved. Thereafter, the contracting office “denied payment of as much as 33% from invoices, compared to only 0.1% from invoices prior to that time,” the report said.

On its Web site this month, Aecom Government Services announced a $78.8 million six-month extension of its contract with the U.S. Army to support operations in Afghanistan, which entails providing general support maintenance and running maintenance facilities at two military bases as well as forward operating bases and satellite locations. The Los Angeles-based parent company, Aecom, provides worldwide technical and management services and reported $6.1 billion in revenue for the year ending June 30, with operations in more than 100 countries. (click HERE for original article)

AECOM wins US$10.5-million task order from U.S. Army Engineering and Support Center

2009-11-16 00:00:00.0

AECOM announces that it has won a US$10.5-million task order to provide energy-efficiency services at a U.S. Navy facility in San Diego.

LOS ANGELES, Nov 16, 2009 (BUSINESS WIRE) — AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today that it has won a US$10.5-million task order to provide energy-efficiency services at a U.S. Navy facility in San Diego.

The work, which will include a base-wide lighting retrofit, construction of two new ultra-efficient central chilled water plants, expansion of the existing energy-management-control system and the installation of a photovoltaic system, will be conducted under AECOM’s indefinite delivery/indefinite quantity contract with the U.S. Army Engineering and Support Center.

The contract has a maximum value of US$50 million and allows AECOM to compete for design-build, energy-efficiency and renewable-energy projects at any federal facility within the continental United States, Alaska, Hawaii, the District of Columbia, and U.S. territories and possessions.

When complete, the project is expected to reduce the facility’s annual utility consumption by 4.7 million kilowatt hours, 48,000 therms, and 10.3 million gallons of water, resulting in annual utility, operations and maintenance cost savings of more than US$900,000. The project will also eliminate more than 3,600 metric tons of carbon dioxide emissions every year.

About AECOM

AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental, energy, water and government. With approximately 45,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that enhance and sustain the world’s built, natural, and social environments. A Fortune 500 company, AECOM serves clients in more than 100 countries and had revenue of $6.1 billion during its fiscal year 2009. More information on AECOM and its services can be found at www.aecom.com.

Forward-Looking Statements: All statements in this press release other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of plans for future operations or expected revenue. Actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2009, and our other reports filed with the U.S. Securities and Exchange Commission. AECOM does not intend, and undertakes no obligation, to update any forward-looking statement.
NR 09-1104

SOURCE: AECOM Technology Corporation
AECOMPaul GennaroSVP & Chief Communications Officer212-973-3167Paul.Gennaro@aecom.com

(Click HERE for original article)

One would think if the Army Contracting Command didn’t have enough experienced personnel to review invoices thoroughly and this was leaving the U.S. government vulnerable to undetected overcharges that they would get the experienced personnel. Increase wages if necessary. If not…just fire EVERYONE in the ACC and contract it out.

Ms Sparky

Other Related Posts From Ms Sparky

  1. DynCorp & AECOM team up & win shot at contract worth $9.7 billion
  2. KGL awarded US contract in Kuwait worth up to $157 million
  3. Fluor awarded $21M contract in Iraq
  4. ITT awarded Kuwait Base Operations and Security Support Services (K-BOSSS)
  5. US “fugitives from justice” awarded $150M Defence contract in UK

28 Comments


The comments posted on this site are the sole opinion of the comment poster and do not necessarily reflect the opinion of MsSparky.com™

  1. Comment by for-what-it's-worth:

    Seems to me that the industries providing these goods and services needs some true competition – a company along the pricing lines of “WalMart” and “Macy’s”, not like some store on “Rodeo Drive” in California.
    Wish I knew someone who wanted to go into this type of business with me, who had the financial backing, who has ethics, morals, who believes in “GOD”, a person who is not Greedy.
    I understand making a profit – but the prices mentioned above reminds me of the $600 toilet seat, that the taxpayers had to pay years ago.

    • Comment by Michelle Roberts:

      Hi there, I completely agree with you. We are an honest, man of word with integrity who truly believe in God. Would love to work with brothers in Christ, what better way to do business. Just like the bible says, be not equally yoke with unbelievers.

      Hit me up with questions to see what we can do to help in making this happen.

      Thank you!

  2. Comment by JustUs:

    Does anyone have any info on how AECOM is to work for? Do they pay on time, treat their employees with respect, etc.?

    • Comment by Dan White:

      AECOM will promise you something so great, then after you had left your job, they will send you a contract that was way less than mentioned. Then once you are out in the danger zone, they will not pay you well, will short change you. Throw you for a loop. Will end your contract whenever they feel like it.

    • Comment by Mily:

      Hey man, I saw you comment and I would like to give you a right answer for AECOM company. This company is the worst company in the World I have ever seen. First of all they do not treat the employees well. All they want is to cheat you. When you sign the contract you sign it for Billeting Specialist and you will work as a Laborer. it is not up to the company if you sign the contract for Billeting and work as a laborer. They just say you have to work as you are assigned by Supervisor. i am sorry to say but I have bad experiences with this company.Before you want to join this company think carefully.

    • Comment by cheryl:

      they pay on time, but they will mistreat u on the job, if your not one of the good old boys u can just forget it……they are friends or relatives of management….hr sucks….related to somebody…….

  3. Comment by albany-ga:

    They have a terrible REP.here in albany ga..the employees are overworked and underpaid..they took over a contract here and reduced almost everyone’s pay anywhere from 1-5 $ per hour..benefits are terrible…almost not worth it…but gotta feed the family…!

    • Comment by james:

      AECOM=A EMPLOYER CENTERED ON MONEY. . .
      AECOM laid off approximately 350 of their employees at the Albany, GA site just weeks before Christmas, only to rehire them in February. They devise ridiculous safety regulations, not because they are concerned about their employees safety, but because they don’t want to pay the fines imposed by OSHA for safety violations. AECOM is also a greedy monster of a corporation, forcing employees to work “voluntary yet mandatory” overtime in excess of 60 hours per week to bail AECOM out of their underbid contract. They constantly comprise and devise new rules and pick and choose how and upon whom to enforce their penalties. The rules in print in the SOP are not the same rules that the managers instruct the team leads to enforce. Every bulletin distributed to the employees contradicts itself and the SOP. AECOM actually sent a memo out to all employees stating that the employees are required to furnish their own personal protective equipment, which AECOM requires the employees to wear i.e. safety glasses, hard hats, ear plugs, etc. It seems that itself is an OSHA violation. . . AECOM does not and currently has no plans to match any 401K contributions, offers sub par, unsatisfactory and sub standard “benefits”, they refuse to give bonuses or raises and any attempts to unionize will be grounds for termination. After one year of employment with AECOM, they generously give their employees 2 days of “use or lose” paid sick leave and 2 weeks of paid leave, however to utilize the acrued leave, the employee has to submit the leave request no less than 48 hours in advance as well as present their most recent pay stub to verify their leave balance.
      The overall situation is that with employment being at such a high rate in south Georgia, AECOM essentially took over the defense contract and they decided that everyone in Albany would be so elated to actually be employed, that they could do whatever they wanted to the employees with minimal or even no resistance.

      • Comment by Ms Sparky:

        Aecom can not make you pay for your own PPE that is mandated by law. This Georgia location in in OSHA Region 4 Contact them ASAP.

        OSHA Region 4 Office
        61 Forsyth Street, SW
        Room 6T50
        Atlanta, Georgia 30303
        (404) 562-2300
        (404) 562-2295 FAX

        Here’s the link to file a complaint. http://www.osha.gov/as/opa/worker/complain.html Ask for an investigation.
        If Georgia has State safety program contact them too.

  4. Comment by Joe:

    I found out for myself the hard way…They’re even worse than KBR, if you can believe that!

    In the pecking order of contactors hiring tradesmen, from worse to better:

    AECOM
    KBR
    DynaCorp
    Fluor

    Stay away from AECOM! Bad management, especially at the PM and DPM level…you’re just boots on the ground to screw the US taxpayer. They brag that their make up will eventually be 70% Indian and 30% ex-pat (it’s now about 50/50); the Indians don’t complain and are more malliable than the Yanks. The US taxpayer is getting hosed again, because not one dime of an Indian’s salary will be used in the US, while the ex-pat’s pay will indeed “stimulate” the economy while keeping the worker off of food stamps.

  5. Comment by aubrey:

    My hubby just got his first AECOM pay check, it was in when it was supposed to be and about 29% more than he was making with KBR last year. Also, we have four kids, one with autism. So far, the medical insurance has been wonderful. All of our doctors take it, I don’t need a referral for a specialist and I’ve spoken with another spouse who has had it for a while and she said she has never had any problems with it. Also, it’s a lot cheaper than KBR, by more than half. Hubby was issued Dickies work clothes and Converse boots by AECOM, has had no problems taking care of things over there that needed to be done. All of his pre employment medical and dental was covered by AECOM up front and he got $500 for food/transportation for his 2 days in Texas, that was NOT an advance like KBR does. It cost us a ton to get his ready to leave with KBR and NOTHING with AECOM. He’s much happier with the management at AECOM than he ever was with KBR.

    • Comment by Ms Sparky:

      That is so nice to hear! I was beginning to think there was no contractor out there worth a task order. Keep us posted.

    • Comment by Hamilton:

      Which medical plan did your husband pick i have Vanbreda and so far the doctors we have spoken to here in tennessee do not take it. please let me know.

    • Comment by cheryl:

      is he still with ae com

    • Comment by cheryl:

      well its nice to hear that your husband is happy with aecom, mine worked for them for 2 years and everyday he had to fight for justice. he’s the kind of guy who does his job and doesn’t put up with anything less. he had alot of problems with management taking the bad guys side…he got sick of aecom’s crap and went to work with another company…….if u can’t fix it just get out

  6. Comment by HappyWithAECOM:

    As a contractor with AECOM I am satisfied. They are a gov’t services contractor who bids as low as possible just like all the other ones and then does their best to deliver the contracted services at the price they bid. Mistakes are made…been at Dyncorp, KBR, ITT and Flour. All the same…depending on how tight they bid the contract depends on how ‘happy’ we are as contractors under that contract. Many times pricers are not experienced enough with operations and make really dumb cuts in the interest of winning and under the guise of saving gov’t money. Perfect example is the ITT bid on KBOSSS…what a mess, they way underbid and now will pay for it by having a hard time getting quality people to work for the pay.
    All in all, depending on the contract, AECOM…pretty decent company. CSA…owned by AECOM…has had lots of problems with the CSSCK conract, but it grew from a tiny program (50m/yr i think) to HUGE (400m/yr or more) and they struggled to get things right throughout.

  7. Comment by dan:

    I was just hired by aecom, all set to leave for crc training.Two days before I was to go I find out my farther in law will be going into hospice to await death.I emailed them telling of my situation but didn’t even get a reply.I even said I would pay the difference in the plane ticket.When my farther in law does kick it I will email the obituary and let you know if they are really that insensitive to there employees.

    • Comment by Ms Sparky:

      Please keep us posted. And my condolences to you and your family.

      • Comment by dan:

        Just an update.My farther in law passed but to my surprise aecom still let me go to processing at camp atterbury.However the first day in camp my wife suffered a panic attack bad enough to be brought to the hospital.This led me to call the person in charge and tell them I needed to go home and the job wasn’t meant to be.She said she was flabbergasted because this will lead me to be unemployed.I asked how I will get home and the response was “you expect us to pay for your return” well luckily I lived in chicago which was only 250 miles so I rented a car to get home.I have to say that I am one of the lucky people who has a wife that makes good money as a nurse.It is a dam shame what this money gouging company pays and there benefits to go to work and live in that crap hole of a country.Risking life and limb and where you are required to pay your own workman comp.How the government lets company’s like this operate with out putting there leaders behind bars is beyond me.And by the way the time spent in crc training at camp atterbury is not paid.They must have some good lobbyist in government where the kick backs to the corrupt politicians are plenty full.I truly feel sorry for the people who dont have any choice but to accept a job with this greedy bastard of a company.One other fact is that if our economy was on its feet I dont think any of these company’s would be able to recruit class individuals.And its to bad because that would be what they deserve.I would like to invite as many people as possible to observe the daily veterans report that shows contracts awarded.How can the same company’s keep getting multi million contract an a daily basis.And if you read the outrages sums they are getting for the stupidest things it would make your blood boil.Case in point I read one just this month for a seven billion four hundred million contract for providing foreign speaking services.And you wonder why we are going down in flames.

  8. Comment by Rick:

    Dont feel to bad there is some crumy contracts out there one that comes to mind is in doha(contractor) that contract states if you demob in your first 6months of your contract you pay for your ticket there and the return ticket and mobilization costs they also collect 1000 a month for this in advance the last 6 months of the contract is for you return ticket
    just wonder if the goverment pays this anyway i think more of this should be disscussed

  9. Comment by dan:

    From what I have heard these company’s charge the government between 12 and 13 thousand per person.This is why aecom does there crc at camp atterbury which is a military camp.It is free for them.But as you can see they make up there underbidding with washers and any other part they can overcharge for.I would like to see them audited for there time charged.Every other company works 12hours seven days with aecom its only 11 hours but I bet they charge for 12.

    • Comment by Tim:

      I work for AECOM in Afghanistan and can tell you I work 12.5 hours a day, 7 days a week with a half day off every 2 weeks. We are are only paid 11.5 hours a day because we take an hour lunch.

      • Comment by Troy:

        I’m at the CRC in Bagram as I write this and am beyond disgusted with the Indians these idiots have hired.
        No clearances and yet work on military vehicles.
        There hygiene is awful.
        Aecom is paying them a fraction of what they would have to pay an experienced American worker.
        Sixty Minutes or some other News organization needs to expose this fiasco.

  10. Comment by Curbs:

    Wow after reading these comments, I think I might withdraw from working with this company. Im in my final stages of getting hired on to work in Afghanistan as a welder. Does anyone know what they get paid there?

    • Comment by Long Time in Kuwait:

      You’re in the ‘final stages’ of working with this company, and you don’t know what they are paying?

      Strange.

      • Comment by cheryl:

        he’s in his final stages of getting hired……..he hasn’t gone over yet………..it depends what kind of person u are. if u are worker and do things by the book and u kiss management’s butt hey u will be alright

  11. Comment by DAVID:

    can anybody guide me in getting a chain supply, property associate job with dyncrop, aecom or fluor

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