DoD says KBR failed to perform at a level deserving an award fee

Ryan Maseth, a 24-year-old Green Beret, was electrocuted and died in a shower at his base in Iraq on January 2, 2008.

Loses $24.1 Million Fee Over Green Beret’s Death

By David Voreacos and Tony Capaccio -B loomberg – Aug 19, 2010

KBR Inc., the largest contractor in Iraq, must defend a wrongful-death lawsuit by the parents of a Green Beret who was electrocuted while showering in a building that the company maintained, a federal appeals court ruled.

, based in Houston, asked the U.S. Third Circuit Court of Appeals to dismiss a case over the accidental death on Jan. 2, 2008, of Staff Sergeant Ryan Maseth. The Pentagon inspector general reported last year that was partly to blame because the shower’s electrical pump wasn’t properly installed.

’s appeal, after a judge declined to dismiss in March 2009, raises “interesting and important questions” about whether it invokes political issues that shouldn’t go before a judge, and whether is immune from suit under a “combatant activities” exception, the court said.

“We do not reach these questions now, however, because they are not properly before us,” a panel of the Philadelphia- based court said Aug. 17. “We must dismiss this premature appeal for lack of jurisdiction.”

The panel sent the case back to U.S. District Judge Nora Fisher in Pittsburgh for more pretrial gathering of evidence. The appeal was premature because Fisher did not “conclusively determine” whether could cite the political-question doctrine or combatant activities exception, the panel ruled.

A spokeswoman, Heather Browne, said the company disagrees with the ruling. It was not responsible for Maseth’s death and will defend the case, she said.

Important Questions

“The court recognized that this case raises important questions of law, but ruled the appeal was premature,” Browne said in an e-mail. “The court found only that it lacked jurisdiction to hear the merits of ’s arguments at this time.”

Maseth, of Shaler, Pennsylvania, a member of the 5th Special Forces Group, was in his second tour of duty in Iraq. He died of cardiac arrest caused by electric shock, according to the complaint by his mother, , and his father, Douglas Maseth.

They allege that the electrical problems at the building where Maseth died were well-known, that negligently failed to repair them, and that the negligence caused his death.

Maseth died in a shower at the Radwaniyah Palace Complex in Iraq in part because the pump wasn’t properly grounded when installed less than two years earlier, according to the inspector general’s report. The report examined the electrocution of 18 U.S. soldiers and contractors in Iraq.

‘Catastrophic Result’

The inspector general criticized the Army’s oversight of Maseth’s compound, saying his death “was the catastrophic result of the failure of multiple systems exposing U.S. personnel to unnecessary risk.”

, Army commanders, and Army contracting command that provided oversight were “responsible for the use and physical condition” of the facility, it said.

Starting in February 2006, “ did not ground equipment during installation or report improperly grounded equipment identified during routine maintenance” at the facility, according to the report.

installed the pump on the roof that contributed to the electrocution of Maseth, said the report.

“The pump that failed leading to the electrocution was not grounded during installation,” it said. “Safe and proper installation required grounding.”

In February, the Army’s Rock Island Contracting Center informed it was being docked all potential fees of $24.1 million for January through April 2008.

‘Failures to Perform’

An Army contracting official, James Loehrl, told in a letter the action followed “failures to perform at a level deserving” of a fee.

The deficiencies included “’s failure to document the poor conditions of the electrical systems” at the complex, its “failure to provide notice of unsafe life, health and safety conditions and ’s failure to employ qualified personnel to provide electrical services.”

In a March 9 rebuttal, Vice President Douglas Horn disputed Loehrl’s claims as “contrary to fact and conflict with findings previously made by multiple government entities.”

Horn disputed what he called the implication that bore responsibility for the deaths of Maseth and others.

“There is no evidence this is true,” Horn said. “The Army knew that buildings” in the complex and elsewhere “had deficient electrical systems” and “the Army chose to house individuals in these buildings” or “not to authorize rewiring or other upgrade work.”

The company is “exploring options and remedies” for recovering the $24.1 million from the Army, Horn wrote in a response to the letter denying the fees.

The case is Harris v. Kellogg Brown & Root Services Inc., 08-cv-563, U.S. District Court, Western District of Pennsylvania (Pittsburgh). (click HERE for the original article)

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KBR loses appeal in the electrocution death of SSG Ryan Maseth (update #2)

with her son Staff Sgt. Ryan Maseth. Ryan, 24, was electrocuted in his shower in Iraq on Jan. 2, 2008.

For those who are not aware, the electrocution death of is what ignited the fire and got me started blogging about and defense contractors in the Middle East. I published my first post about and their virtually non-existent electrical program in Iraq on June 2, 2008 after watching a gut wrenching CNN special about and the electrocution death of her son . Since that first post, there have been several Congressional hearings on electrical deficiencies in Iraq, licensing requirement for electricians were implemented and wages for qualified electricians were raised. Task Force SAFE was established and virtually every building in Iraq has been electrically inspected and repairs to ’s electrical deficiencies have been made. Of course got paid to fix their own screw ups, but the end result is safer facilities for our troops and civilians. All thanks to and her true “unwavering commitment” to the safety of our troops and civilians.

(edited to add a link to the second AP article)

This case has been sitting in the 3rd Circuit Court of Appeals since last year. It has been an agonizingly long process of hearings and appeals by . I am pleased to say that all of ’s legal maneuvering did not achieve their goal of getting this case dismissed. has lost what I believe is their final appeal in the 3rd Circuit Court of Appeals and must now explain in a court room how the electrocution death of is not their fault!! I’d like to see how they are going to do that. I’m not an attorney so if I’m mistaken please me know!

Below are two brief news articles. Naturally I will keep you all posted as this process continues. And as always, if you have any information regarding the electrocution death of , who was electrocuted in his shower on January 2, 2008 at Radwaniyah Palace Complex (RPC) please contact me or ’ attorney Pat Cavanaugh.

For the decision of Judge Smith of the 3rd Circuit Court of Appeals click HERE

All I can say is WOO HOO!!

Ms Sparky

Staff Sgt. Ryan Maseth

Appeal in Pa. soldier’s electrocution is rejected

An appeals court has refused to dismiss a lawsuit brought by the parents of a Pittsburgh-area soldier electrocuted in an Army barracks shower in Iraq.

Houston-based military contractor Inc. appealed last year after a federal judge refused its request to dismiss the lawsuit. had argued the judge had no jurisdiction over military matters.

claims it wasn’t responsible for Staff Sgt. Ryan Maseth’s death in January 2008, when it was tasked with maintaining the barracks. Army investigators have determined a water pump shorted out and electrified water flowing into the soldier’s shower.

Tuesday’s 3rd U.S. Circuit Court of Appeals ruling means the case will be sent back to U.S. District for more pretrial proceedings.

The lawsuit seeks unspecified damages. (click HERE for the original article)

Appeals court rejects appeal to dismiss suit in Maseth electrocution

By The Associated Press
Tuesday, August 17, 2010
Last updated: 3:37 pm

A federal appeals court ruled Tuesday that a wrongful death case against a Houston-based defense contractor should continue for now.

of Cranberry (PA) is suing Inc. over the death of her son, Army Staff Sgt. Ryan Maseth. Maseth was electrocuted Jan. 2, 2008, while taking a shower at the Radwaniyah Palace Complex in Baghdad. A 2009 Defense Department report concluded that improperly installed the water pump that shorted out and killed Maseth.

The company denies responsibility for Maseth’s death. U.S. District Judge Nora Barry Fischer in March 2009 rejected ’s motion to dismiss the case. The company appealed her decision to the 3rd U.S. Circuit Court of Appeals.

A three-judge panel supported Fischer’s ruling that both sides should have more time to develop their evidence before she decides whether the case should proceed to trial. (click HERE for the original article)

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Military’s casualty notification system often frustratingly uneven for families

Hands on FlagBy Geoff Ziezulewicz – Stars and Stripes – August 5, 2010
Families with troops who died in noncombat situations generally reported a harder time getting answers than those whose loved ones were killed in battle.

Tragedy Assistance Program for Survivors The casualty notification officers somberly relayed their message: It was one of her twin sons, Army Staff Sgt. Ryan Maseth, who had perished.

They couldn’t provide any more information to Harris, nothing else to help the reeling mother absorb or even comprehend the shock.

“Their job was to convey he died,” Harris said. “That’s it. I actually for a brief period of time thought he’d been murdered. That was even more horrible.”

It wasn’t until the next day that Harris was told that her son had been electrocuted in a shower, but still there were few details. Desperate for answers, Harris started hounding the Army’s Criminal Investigation Command, and three weeks later, she found out that an electrical system had shorted out, killing Maseth in the shower at the Radwaniyah Palace Complex in Baghdad.

“I don’t think I would have been told that unless I had constantly pressured and questioned [the military],” said Harris, who later filed a wrongful-death lawsuit against , the contractor responsible for the wiring. “They told me it was difficult to relay information from Iraq to the U.S. I said, ‘How are you fighting a war?’?”

(Read the rest of the story here…)

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KBR’s Utt tells the DoD to back off!

I just love the relentless tenacity of the dedicated  staff at the Project On Government Oversight (POGO). In a recent POGO post entitled KBR Puts the Squeeze on Its Pentagon ‘Partner’ it’s clear that ’s idea of partner and mine are quite different.

Below is a letter ’s Chairman, President and CEO sent Dr. Ashton B. Carter Under Secretary of Defense in March 2010. I read the letter. It basically says……back off, give us our and current and future contracts won’t be affected. You read it and you decide.  (click HERE for a copy of the original)

My personal thanks to the tipster who informed me this letter even existed and to POGO for their FOIA writing expertise that got it released!

~~~~~~~~~

March 5, 2010

Dr. Ashton B. Carter
Under Secretary of Defense
for Acquisition, Technology and Logistics
3010 Defense Pentagon
Washington, DC 20301-3010

Dear Secretary Carter:

I write to follow up on our meeting last year and to convey several concerns about the course of events since our discussion.  Developments on several fronts cause me to ask for your assistance as contemplates future business decisions involving our Department of Defense contracts.  Since our meeting, developments have evolved on various fronts that potentially impact ’s ability to continue to provide expeditionary, stability and reconstruction contract support.

Please recall that when we met I questioned the extent to which the Department values ’s contributions to the US Military efforts in Iraq and Afghanistan. My impression, based upon your response to the issues I raised at that meeting, was that you and the Department not only value ’s contributions to the war effort but see the company as an essential partner going forward.

First, with respect to the LOGCAP IV contract, while had unsuccessfully bid on eight prior task orders; we are pleased that our bid for the LOGCAP IV Corp Logistics Support Services, Theater Transportation, and Postal Services (CTP) Task Order in Iraq was evaluated as providing best value to the US Army. This award was significant to as it confirmed to us that our lack of success in bidding previous task orders was not the result of being constructively debarred for reasons of political expediency.  Further, we understand the prudency and fully support the actions by the Department to have multiple options for mission support as opposed to relying on a single source supplier.

Second, as a result of the recent actions by the LOGCAP Determining Official to deny any award fees for the period of January 1, 2008 through April 30, 2008, I feel there no longer exists any transparency or predictability in the way will be treated by the LOGCAP Determining Official with respect to the payment of any prospective award fees.   In the overwhelming majority of task orders on which has worked, the quality of the work has been exceptional and our customers on the ground, soldiers, sailors, airmen and Marines, have been more than satisfied with the product provided or service rendered. This has been reflected in our consistent ratings of “very good” to “excellent” scores.   Moreover, I believe that ’s contributions in Iraq in providing continuing logistics support to our troops as well as “ramping up” our services to accommodate the influx of forces associated with the surge in Iraq contributed greatly to the success of that endeavor. While we disagree with the actions on the part of the LOGCAP Determining Official to award zero award fees for the period from January 1, 2008 through April 30, 2008, we nonetheless recognize the discretion the LOGCAP Determining Official has in determining award fees. This action by the LOGCAP Determining Official has caused to write off $133 million of accrued awards fees as of 31 December 2009. This action, without clear delineation as to 1) how future boards will be managed, and 2) if our performance warrants, as in the past, the payment of award fees how payments of these award fees will be made to , raises significant questions in my mind as to the predictable and objective basis to receive award fees.

To address this concern, I request your assistance in facilitating a meeting with and colleagues in the Army to openly discuss the timing and content of future evaluations for services on upcoming boards.

Third, the spate of resulting from activities the company undertook at the specific direction and control of the Army and other military officials continues to grow. Specifically, we are facing suits literally from across the country in connection with deaths and injuries associated with supply convoys, electrical safety, chemical exposures, down wind exposure to toxins from burn pits, and other issues resulting from our work on behalf of the military.  The financial and administrative burden to in defending these suits is enormous, and support from our customer is critical to adequately describe the Army’s position in its use and direction of its contingency contractors.

Recently, met with attorneys from the office of the Department of Defense General Counsel to discuss the need for more and better support to bring the perspective of the Army into the discussion in several of these law suits. The position of the Department to properly characterize the broad and far reaching role of the Army in its use and direction of its contingency contractors needs to be heard, if only to serve to protect the interests of the taxpayer from inappropriate and misinformed rulings from the Judicial Branch of the Government. Further, if the Army does not provide the necessary support to enable those companies who perform work at the government’s direction and control to respond to lawsuits resulting from that work, inappropriate outcomes on these lawsuits could give rise to long term adverse consequences to the Department’s ability to continue to attract and retain highly qualified battlefield contractors.   Clearly, does not feel like a true partner of the Department in supporting critical military missions if we are left alone to defend these suits without the appropriate involvement of the Department in these litigations.   Moreover, the actual costs and any possible judgments against may ultimately be visited on the U.S. Government.

To address this concern, I urge your support to assist to cause our Army customer to provide a greater level of cooperation and better access to information and witnesses going forward as we seek to prevent inappropriate legal outcomes based, in part, on the failure of the court to appropriately understand the Army’s position in its use and direction of its contingency contractors.

Finally, I hope you appreciate that has been subjected to an incredible amount of oversight and scrutiny in connection with its work on the Department’s behalf.  This oversight and scrutiny is far more than anyone could possibly imagine.  In recent years, in our Houston offices alone, we have had up to 30 auditors in resident, with more on the way.  By mid-March, 61 auditors will occupy our Houston facilities.  When one factors in the additional scrutiny, voluminous information requests, briefings, meetings, hearings and other administrative burdens the company faces from Congressional Committees, the Government Accountability Office, inspectors general, , , and the Commission on Wartime Contracting.   I hope you can understand both the strain on the company as well as the extraordinary lengths to which has gone in order to both be a good corporate citizen and to comply within the increasingly onerous requirements that go along with being a wartime contractor.  While much of this oversight may have been the result of policies, actions or inactions on the part of our prior parent, Halliburton; I can assure you that ’s new management, as well as its new Board of Directors, does not tolerate, for one moment, any of the issues that may have given rise to such a high degree of oversight as has received.  Please understand that we are working to correct any deficiencies that come to light with due urgency and commitment; however, the degree of oversight and investigation is potentially crushing for a company even as large as .

To address this concern, I request your assistance to cause to continue to take a more active role in managing the interface between and the contractor with an objective to reduce, and hopefully eliminate, any emotion on the part of in issuing a steady and seemingly endless string of Form 1 withhold requests.  has taken steps to change its personnel interfacing with and and we continue to examine ways to improve both our professional relationships and working dialog with the and ; and as a consequence, I hope that a renewed effort on the part of can be a positive contributor towards getting this situation back on a more appropriate footing.

All of the foregoing circumstances, taken cumulatively, are making a significant impact on whether can continue to support the Department’s battlefield logistics requirements now and in the future.  Indeed, the aforementioned issues did cause to decline to bid on the recent LOGCAP IV task order issued for the rebuilding of Haiti.  It is extremely difficult, if not financially burdensome for to continue in the present environment that exist today.  I feel we may be rapidly approaching a tipping point at which the expense of defending lawsuits, increased administrative burdens and, in our view, potential financial penalties and continued uncertainties related to our ability to continue to receive award fees under the LOGCAP III contract will overwhelm our patriotic and business interests in serving our troops.

I would appreciate the opportunity to discuss in greater detail the present situation and the way forward at your earliest convenience and urge you to reconsider my request to meet in person.  I want to continue to believe that is a valued partner for the Department as it undertakes difficult operational challenges.  We support your efforts and are honored to serve with on behalf of the troops of the United States Military.  Candidly, I hope that you and the Department are willing to make the kind of commitment to a partnership that we believe will be required for to continue to provide the valuable on-going and lasting support to military operational activities that it has to this point.

Sincerely,

William P. Utt
Chairman, President and CEO

My only response to this is…..who’s really running the war? or the DoD.It sounds to me like is trying to hold the DoD hostage and the ransom is the !

Ms Sparky

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Corrupt Contractor KBR Under Fire in Palm Beach County; Anyone Surprised?

By Lisa Rab -  Wed., Jul. 14 2010
Broward Palm Beach New Times

A front-page story in today’s Palm Beach Post blasts the Houston-based engineering and construction firm Kellogg, Brown & Root () for not hiring enough local workers on its $200 million solid waste project in western Palm Beach County.

One small detail is missing: ’s sordid track record of hurting workers in far more dangerous ways.

Last year, shortly after a division called BE&K won the waste contract, the Juice warned of dark times to come. , a former subsidiary of Halliburton, is one of the worst government contractors in Iraq and Afghanistan. It’s been accused of endangering soldiers, taking bribes, bilking the U.S. Department of Defense, and turning a blind eye to the sexual of its employees. Witness some of the company’s alleged sins:

– In 2006, a Defense Department auditor found may have overpriced fuel imported to Iraq by $279 million.

– In 2008, a U.S. soldier in Iraq was electrocuted while showering in a building maintained by . An Army investigation ruled his death a “negligent homicide” caused by . According to the Associated Press, had 231 electric shock incidents in the facilities it ran in Iraq.

– In 2009, the company pleaded guilty to giving millions in dollars in bribes to Nigerian officials in order to win engineering and construction contracts. agreed to pay a $402 million criminal fine.

Several former female employees have alleged they were raped or sexually harassed while working for KBR in Iraq, then faced retaliation from the company when they complained. Last year, one sexual assault victim won a $2.9 million award from her arbitration claim against the company.

Back here in Palm Beach County, unemployed welders and carpenters say is shutting them out of a lucrative gig overhauling a Solid Waste Authority plant. Meanwhile, the company is angling for yet another $700 million waste contract in the county. Sounds promising, doesn’t it? (click HERE for original article)

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