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. 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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KBR loses $84.7M in Award Fees for LOGCAP III in Iraq

Is this "no " the equivalent of a good old fashioned DoD spanking?

Below is a recent article from Bloomberg Business Week. It’s obvious is trying to spin this pathetic into something positive for their shareholders. The fact of the matter is, of the $123.8M available for for the 7 quarters listed below, including the first quarter of 2008 when was killed, actually lost $84.7M in available awards. Of the $123.8M available for those quarters, was awarded $39.1M a mere 32% of what was available. has enjoyed unchallenged award fees in the 90% of total fee available for years. That doesn’t really sound like a job well done to me!

profits are based on award fees. Although the Army just awarded them a $568M contract for IV (for whatever reason), no means NO PROFIT for ! ~ Ms Sparky

Loses $24.1 Million Bonus Over Green Beret’s Death in Iraq
June 09, 2010, 10:22 AM EDT

By Tony Capaccio

June 9 (Bloomberg) — Inc., the largest contractor in Iraq, lost all of its potential bonus — $24.1 million — for the first four months of 2008 because it was found partly to blame for the accidental electrocution of a Green Beret.

This is the first time lost its entire performance fee since the company won the contract in 2001 to support U.S. troops, Army Contracting Command spokesman Daniel Carlson said.

Houston-based has received orders from this contract totaling $35.7 billion to date. Its profit comes from a base fee of 1 percent and periodic bonuses based on criteria such as quality of work and its control over cost and schedule.

Staff Sergeant Ryan Maseth of the 5th Special Forces Group was electrocuted while showering on Jan. 2, 2008, in part because the shower’s electrical pump wasn’t properly grounded when installed less than two years before, the Pentagon inspector general reported on July 27, 2009.

The report 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, the Army contracting command and were all “responsible for the use and physical condition” of the compound, the report said.

did not ground equipment during installation or report improperly grounded equipment identified during routine maintenance” at the facility starting in February 2006, thereby “perpetuating electrical hazards,” the report found.

Accidental Death

The death was ruled accidental and wasn’t found criminally negligent. Maseth’s mother, Cheryl A. Harris, in March 2008 filed a wrongful death suit against . A federal judge last year denied a dismissal motion. The case is pending in the 3rd U.S. Circuit Court of Appeals in Philadelphia.

The Army’s decision to deny ’s bonus followed a Jan. 7 report from its audit agency, which conducted its own investigation as well as reviewing the Pentagon inspector general’s report and the findings of an Army Criminal Investigation Command probe.

The $24.1 million wasn’t rolled into the subsequent award- fee period so can’t earn it back, Carlson said in an e-mail.

spokeswoman Gabriela Segura said the company was notified Feb. 19 that the fee wouldn’t be paid but hasn’t seen the Army audit “so it would be inappropriate to comment” at this time.

“We requested access to all information used so that we are better able to understand” the decision and “to determine whether there are additional actions that we might take,” she said.

’s performance improved enough in the subsequent bonus periods from May 2008 through August 2009 for the Army to pay it $39.1 million of the $99.7 million available, or about 40 percent, according to the contracting command.

The Army announced May 6 that received a new order worth as much as $568 million to continue to provide services in Iraq such as housing, meals, laundry, showers, water purification and bathroom cleaning. (Click HERE for  original article)

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KBR’s Bill Bodie resigns – Good F-ing Riddance!

William C Bodie courtesy of google

Good riddance! I had to establish a whole new category when Bodie started his public campaign of villainizing victims of incompetence and corruption. I called it Bodie Babble. He actually had the ballz to write op-ed article for news papers around the country supporting ’s position of why wasn’t responsible to killing Col Gentry and making others sick at Qarmat Ali, why it wasn’t ’s fault at all that Jamie Jones’ was raped and held against her will in 2005 and why the Good Friday Massacre was the Army’s fault.

Below is the email sent out by ’s Mark Williams.

TO: All Infrastructure, Government & Power (IGP) Employees

FROM: Mark Williams, Group President, IGP

SUBJECT: North American Government and Defense Leadership

plays a vital role in support of the U.S. military and other Government agencies. The leadership of the North American Government & Defense (NAG&D) Business Unit is an important aspect of that support. I want to thank Bill Bodie for his work, dedication and service to . Bill has resigned to take another job and I wish him well in his new endeavor.

As we work to fill the NAG&D role, I will serve as interim President. I will continue to look to the counsel of Richard Hack, Jill Pettibone, Richard Graves, Linda McKnight, Bud West and their teams to guide the organization.

Thank you all for your service and dedication to . I look forward to our continued work together as we strive to make the world’s premier go-to contractor of choice.

So what happened to Bodie? Did he even make it a year? Maybe….barely! He replace Bruce Stanski when he just up and quit onMarch 17, 2009 and slithered on over to taking many of his minions with him. So where is Bodie slithering too. Dyncorp? Agility?

Now I’m going to have to edit my KBR Happy Dance JibJab of Bill Bodie and Bill Utt.  For those who are unaware this JibJab is the dance I think Bill and Bill do every time there is a ruling in ’s favor. (Do not click if you are easily offended!)

So…..any speculation on who will be replacing Bodie? I understand Lucifer is available!

Bye Bye Bill!! I’m sure if you land in the Defense Industry ANYWHERE you will be giving me plenty more to write about!

Ms Sparky

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Army decision to deny millions in bonuses to KBR is “Right call, but only fist step”

American Chronicle – Congressional Desk
February 26, 2010

Former Electrical Subject Matter Expert James Childs testifies before the Senate Democratic Policy Committee about the shoddy electrical work performed by . , 's mother, sheds a tear as she listens to why her son was electrocuted and died in his shower in Baghdad on January 2, 2008.

WASHINGTON, D.C. – U.S. Senator Byron Dorgan (D-ND), who chaired Senate hearings on electrocutions of soldiers in Iraq resulting from shoddy contracting work by , said Thursday the Army´s decision to deny million of dollars in bonuses to the firm for its 2008 work in Iraq “is the right call, but it is only a first step.”

Dorgan chaired two Senate Democratic Policy Committee (DPC) hearings in 2008 and 2009 on ´s shoddy electrical work in Iraq. The hearings revealed widespread problems with ´s electrical work there including countless electrical shocks including one that killed Staff Sgt. Ryan Maseth, and perhaps others, and injured dozens more on their own bases as they showered and engaged in other routine activities.

Following the hearings, Dorgan and Senator Robert Casey (D-PA) wrote the Army asking that it review ´s work and the electrocution death of Staff Sgt. Ryan Maseth. They also asked the Army to re-evaluate the millions of dollars in bonuses it has routinely awarded for supposedly excellent work, even when the Army´s own evidence made clear it was highly questionable.

The Army´s investigation of Maseth´s January 2008 death found that ´s work exposed soldiers to “unacceptable risk.” A theatre-wide safety review that resulted from the Dorgan-Casey request — — also found widespread problems with ´s electrical work that exposed soldiers to life threatening risks. (Read the rest of the story here…)

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