Fluor Drops Protest of $500 Million KBR Iraq Support Contract

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Tony Capaccio – (Bloomberg) – September 30, 2011 – Fluor Corp. (FLR) has dropped a protest filed last month with the Government Accountability Office challenging a $500 million award to KBR Inc. (KBR) for a logistics support contract in , according to and a government website.

Irving, Texas-based Fluor withdrew its protest Wednesday, according to the ’s website and KBR spokeswoman Gabriela Segura in an e-mail. Fluor spokesman Keith Stephens said the company had no comment.

The contract was on hold until the protest was resolved. The hold has been lifted, said Army Sustainment Command spokeswoman Linda Theis.

Houston, Texas-based KBR announced August 2 it will continue for the State Department its previous Iraq role providing base support after U.S. troops are scheduled to withdraw in December.

KBR will support the State Department’s embassy staff, including utilities management, fire fighting, food services, laundry, shuttle bus services, fuel and postal operations.

The one-year contract includes a one-year option.

KBR has not received any similar contracts for Afghanistan. (Click HERE for original article)

SAIC, settling bid rigging cases (NAVO), losing records (TRICARE) & winning contracts (NAVY), what a week!

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Nearly 5 million military health care files stolen

(HelpNet Security) – Spetember 30, 2011 – Sensitive data about nearly 5 million patients has been compromised following the theft of backup tapes from an electronic healthcare app used in the military health system, warns , a health care program for U.S. military personnel.

The information in the records includes names, addresses, phone and Social Security numbers, as well as health data – clinical notes, laboratory tests, prescriptions, and more – belonging to former and current military personnel and their families that have been treated or whose laboratory workups were processed in any of the military treatment facilities in the San Antonio area between 1992 and September 7, 2011.

“The risk of harm to patients is judged to be low despite the data elements involved since retrieving the data on the tapes would require knowledge of and access to specific hardware and software and knowledge of the system and data structure,” TRICARE was sure to note, and added that the stolen records do not contain financial data of any kind and that affected individuals will be notified with more details after they are identified.

(Read the rest of the story here…)

Lockheed Martin & SAIC settle False Claims Act case for bid rigging at NAVO

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and Others to Pay U.S. More Than $22.6 Million to Resolve False Claims Allegations

Case Involved The National Center for Critical Information Processing and Storage at Mississippi’s Stennis Space Center

(DoJ) – WASHINGTON – September 29, 2011 – Science Applications International Inc. (SAIC); its subcontractor, Applied Enterprise Solutions LLC (AES); AES CEO ; and former government employees Stephen Adamec and Robert Knesel will pay the United States $22,676,000 to resolve allegations of false claims in a whistleblower suit, the Justice Department announced today. SAIC will pay $20,400,000 and AES and will pay $2,166,000. Adamec and Knesel are paying $110,000.

The (FCA) suit, filed in June 2009 in the Southern District of Mississippi, alleges that the defendants knowingly violated the FCA when they submitted or caused the submission of false claims and conspired to submit such claims under a contract with the in support of the Naval Oceanographic Major Shared Resource Center ( MSRC). That contract was to provide support services for the at the MSRC. GSA awarded the NCCIPS task order in April 2004 to SAIC, which teamed with and AES to perform under the task order. SAIC was paid a total of $116 million under the contract.

The qui tam, or whistleblower, suit alleges that prior to the issuance, and once the NCCIPS solicitation had been publicized, Adamec and Knesel, then government employees, conspired with SAIC, AES, Galloway and Lockheed Martin to ensure that SAIC and its teaming partners were awarded the task order by sharing non-public, advance procurement information with the SAIC team that was not provided to other potential bidders; sharing information about the solicitation with the SAIC team before providing that information to other bidders; and choosing a type of contract and putting language in the solicitation in order to bias the selection process to favor the SAIC team.

(Read the rest of the story here…)

Defense Department Inspector General says KBR and the military failed to respond quickly to health risks posed to Oregon soldiers

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has been linked a range of illnesses

…Minutes of a June 14-15 meeting between TF RIO, , and Iraqi State Company for Oil Projects representatives noted that “chemical treatment should [be] selected based on widely available nontoxic commodity chemicals.” However, e-mails between personnel in late June indicated a decision from corporate headquarters in Houston to keep using “chromate” and other chemicals used previously. Three TF RIO witnesses we interviewed supported the conclusion that sodium dichromate was not used at after TF RIO and KBR personnel arrived… ~ Part II – Exposure to Sodium Dichromate at Qarmat Ali Iraq in 2003

Mike Francis – (The Oregonian) – September 28, 2011 – The Defense Department and contractor Kellogg, Brown & Root failed to act as quickly as they should have to protect those exposed to a carcinogenic chemical at an Iraqi water treatment plant in 2003, according to a report Wednesday by the Defense Department’s Inspector General.

The report was hailed as a victory for Oregon soldiers by , D-Ore., who was one of a group of senators who sought the IG’s evaluation, and by troops who are among those suing KBR. They accuse the contractor of knowingly exposing them to sodium dichromate, an anticorrosive compound that can cause skin and breathing problems and cancer. (Read the rest of the story here…)

Scandal in Mistreatment of Silent Service Members

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Scott J. Bloch – September 28, 2011 – I like representing heroes. I did it in the federal government, helping whistleblowers who were taking it on the chin for protecting us. One of the more rewarding things I had the privilege of doing in government as U.S. Special Counsel was protecting the jobs of heroes returning from National Guard or reserve duty under USERRA. Now back in private practice, I have been privileged to protect the rights of our silent service members – private contractors who work in and Afghanistan and Kuwait in support of Operation Iraqi Freedom and Operation Enduring Freedom.

While about 150,000 troops from America have served in Afghanistan and Iraq at any given time over the last few years, we don’t hear much about the 200,000 private contractors, about 100,000 from America, the rest from England, South Africa, Australia and other countries such as Kuwait, Iraq, India, Afghanistan, South America, Uganda and so on. There have been several thousand deaths among these contractors, and over 50,000 injuries, some catastrophic, some psychological, sometimes both.

Many of them are decorated veterans of the two current wars, Operation Desert Storm, the Bosnian conflict, or Vietnam, some with purple hearts, silver and bronze stars and other combat medals and awards. Many have been in the special forces of their countries’ armed services. They believe in helping America fight terrorists and defend freedom. They have placed their lives on the line as security personnel, carrying guns, or as combat drivers, as firefighters on bases where they are attacked, bombarded by mortar fire, shot at, and subjected to extremes of war and heat, during long work days usually seven days a week. These are not“mercenaries,” with all of the negative connotations contained in the word. They are patriots.

Many of these ordinary heroes have suffered physical and mental injuries, including having their limbs blown off, contracting brain injuries from concussion blasts of roadside bombs, or severe post traumatic stress disorder from being subjected to horrifying scenes of dismemberment, death, and threats of same every day. What has the American government done for them, and what have the insurance companies being paid billions done for these men and women?

KBR can’t recover $2M from Jones; case not frivolous says Judge

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John O’Brien – (Legal Newsline) – HOUSTON  – September 27, 2011 – Jamie Leigh Jones, the woman who alleged her employer was at fault for a that a jury said never happened, must pay court costs to the company she sued but not its attorneys fees.

U.S. District Judge Keith Ellison ruled Monday on Kellogg, Brown and Root’s motion for costs and attorneys fees, more than two months after a federal jury found that Jones was not raped while an employee of , a former subsidiary of .

He ruled that Jones is on the hook for KBR’s $145,073.19 in court costs. Citing a federal rule of civil procedure, Ellison wrote “costs – other than attorneys fees – should be allowed to the prevailing party.”

A federal jury decided in July that Jones, whose case became a talking point for those who sought mandatory arbitration reform, was not raped in while employed by KBR. The company moved on Aug. 17 to have its attorneys fees paid by Jones. KBR spent more than $2 million on attorneys fees.

In fighting the lawsuit, KBR had argued a mandatory arbitration clause in her employment contract had prevented her from suing the company in open court. An appeals court sided with Jones on that issue, but jurors ruled in July that Jones and had engaged in consensual sex. (Read the rest of the story here…)

T. Christian Miller – Injured War Contractors Sue Over Health Care, Disability Payments

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T. Christian Miller – (ProPublica) – September 27, 2011 – Private contractors injured while working for the U.S. government in and Afghanistan filed a class action lawsuit [1] in federal court on Monday, claiming that corporations and insurance companies had unfairly denied them medical treatment and disability payments.

The suit, filed in district court in Washington, D.C., claims that private contracting firms and their insurers routinely lied, cheated and threatened injured workers, while ignoring a federal law requiring compensation for such employees. Attorneys for the workers are seeking $2 billion in damages.

The suit is largely based on the , an obscure law that creates a workers-compensation system for federal contract employees working overseas. Financed by taxpayers, the system was rarely used until the wars in Iraq and Afghanistan, the most privatized conflicts in American history.

Hundreds of thousands of civilians working for federal contractors have been deployed to war zones to deliver mail, cook meals and act as security guards for U.S. soldiers and diplomats. As of June 2011, more than 53,000 civilians have filed claims for injuries in the war zones. Almost 2,500 contract employees have been killed, according to figures [2] kept by the Department of Labor, which oversees the system.

An investigation by ProPublica, the Los Angeles Times and ABC’s 20/20 [3] into the Defense Base Act system found major flaws, including private contractors left without medical care and lax federal oversight. Some Afghan, Iraqi and other foreign workers for U.S. companies were provided with no care at all.

The lawsuit, believed to be the first of its kind, charges that major insurance corporations such as and large federal contractors such as Houston-based deliberately flouted the law, thereby defrauding taxpayers and boosting their profits. In interviews and at congressional hearings, AIG and have denied such allegations and said they fully complied with the law. They blamed problems in the delivery of care and benefits on the chaos of the war zones. (Click HERE for original article) (Click HERE for complaint PDF)