Hearing: Are Government Contractors Exploiting Workers Overseas? or Does the end justify the means? (updated 11-2-2011)

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Stack of "Get Away Guest House of Pattaya" business cards with former manager 's name on them

Witnesses
Panel I
Ms. Liana Wyler, Senior Analyst Congressional Research Service
Mr. David Isenberg, Independent Analyst and Writer
Mr. Nick Schwellenbach, Director of Investigations, Project on Government Oversight
Mr. Sam W. McCahon, Founder McCahon Law

Panel II
The Honorable Kenneth P. Moorefield, Deputy Inspector General for Special Plans & Operations U.S. Department of Defense
Mr. Michael P. Howard, Chief Operation Officer Army and Air Force Exchange Service
Ms. Evelyn R. Klemstine, Assistant Inspector General for Audits U.S. Department of State
Ms. Linda Dixon, Combating Program Manager, U.S. Department of Defense

On Wednesday November 2, 2011 at 10:00 AM EDT, the Subcommittee on Technology, Intergovernment Relations and Procurement Reform will hold a hearing on US Government contractors who exploit foreign national workers at US facilities overseas.  I hope Congress doesn’t think human trafficking is a new issue. I’ve been blogging about the exploitation of foreign national workers in and since I started this blog nearly four years ago.

The Trafficking in Persons () of workers is a clear violation of the FAR and DFARS and therefore a violation of US law and many international laws as well . Yet, this most egregious crime against humanity goes mostly unchecked by many Defense Department, State Department and USAID contractors and their subcontractors. Why is that? Does the US Government feel the end justifies the means?

The US Government, in all their infinite wisdom (sarcasm), have adopted the philosophy it is more cost effective to award contracts to those who hire labor brokers to fill most labor positions in countries such as Iraq and Afghanistan. These labor brokers in turn go to destitute third world countries such as India, Nepal, Uganda and The Philippines to hire tens of thousands of both male and female workers. The recruits are promised the moon and charged a hefty recruiting fee for this “once in a lifetime” opportunity. Many recruits are blatantly lied to and have no idea they are heading to a war zone. Many know they are going to a war zone but end up in over crowded, unsanitary living conditions with less pay than what they were promised. Some of these conditions are experienced on US Military installations, some in staging facilities outside the “wire” with little protection from the insurgency. (Read the rest of the story here…)

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 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)

Windfalls of war: KBR, the government’s concierge

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’s umbrella contract to provide everything from showers to rebuilding airfields tops $37 billion. “It’s like a gigantic monopoly,” says one critic.

Secretary of Defense Donald Rumsfeld talks with troops in . KBR has been paid $37 billion to build infrastructure like this dining hall. Jim Watson/AP

After a decade of war, KBR’s umbrella contract tops $37 billion

Sharon Weinberger – (The Center for Public Integrity – iWatch News) – August 30, 2011 – The rush to war in the months following the terrorist attacks of 9/11 created an urgency in the , not just for military operations but also for contracting.

When U.S. forces moved into in 2001, there was little, if any, infrastructure to support and house U.S. troops. The military needed someone to do everything from housing troops to rebuilding airfields. The solution was a contract called the , or , a type of umbrella contract the Army had been using to support is military bases overseas. In late 2001, the Army, after a competition, awarded to KBR. The Houston-based firm [3], once a subsidiary of , began providing everything from showers to dining halls.

Even beyond single-source contracts, the Pentagon has other types of contracts it can use to quickly award work without having to compete specific jobs. They include umbrella-type contracts, like LOGCAP, that allow the government to buy unspecified goods and services over long periods of time. “It’s the government’s way of saying ‘We don’t know what we want, and we don’t know how much it costs,’” said Laura Peterson, a senior policy analyst with Taxpayers for Common Sense, a watchdog group. “Instead they say, ‘we’ll put you on retainer and tell you later what we want and when we want it, and you just bill us.’ You become the government’s concierge, and it’s like a gigantic monopoly.”

(Read the rest of the story here…)

Fluor employee victim of brutal rape at FOB Shank in Afghanistan (updated)

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This post has been edited to correct errors in the original that reported the victim had died in Germany of her injuries.-Yes, sometimes I get it wrong too. Ms Sparky-July 26, 2011

I’ve just learned there’s been a brutal and death at in . The victim was reportedly a female Fluor employee from the Macedonia region.

The attack occurred on July 22, 2011. She was reportedly found unconscious and was medi-vac’d to Bagram Air Field (BAF).

This crime has apparently got the entire FOB locked down. Hopefully, they’ll find the person(s) who committed this heinous crime and prosecute them to the full extent of the law.

This is but another on the long list of tragic rapes and murders in and Afghanistan.

As soon as I get more information on this sad tragedy I will update the post. I will not publish the victim’s name at this time.

My most heartfelt prayers go to the friends, family and co-workers of this victim.

Ms Sparky

Updated: July 26, 2011

I just received the below information in an email ~ Thanks to “AnonymousCoward” for sending it. Thanks to my readers for setting me straight.

Team Fluor,

A Fluor employee was found severely injured on July 22 at Forward Operating Base Shank. After receiving medical attention in country, the employee was evacuated out of Afghanistan and is currently in critical, but stable, condition in a military medical facility.

Privacy laws and respect for the employee preclude release of any further details. A military investigation is underway and we are providing full cooperation. As such it would be inappropriate to discuss any details until the investigation is complete and has been reviewed.

I want to be sure you all have the above information, as it has come to my attention that certain internet blogs have posted inaccurate information about this tragic incident.

In order to ensure we respect the privacy of our employee and the family, and not prejudice the investigation, I ask each of you to help us stop the spread of rumors.

Should you have any questions or information, please relay them to your immediate supervisor. They will ensure the proper steps are taken. Keep in mind that we also have the professionals of our Employee Assistance Program available to assist you.

Our thoughts and prayers are with our teammate and the family during this difficult time.

Word of the day ‘clawback’ – Commission Hearing March 28, 2011

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Nothing starts the week out better than a good cup of coffee and listening to the grilling a witness on the ineptitudes of wartime contractors.  It makes it worthwhile to get up on Monday morning, when you can turn on C-Span, with the anticipation of hearing the sound of a gavel calling a hearing to order.  As usual the Commission did not disappoint. ~Forseti

resists automatic suspension of indicted contractors
Robert Brodsky – (GovExec) – March 28, 2011 – Mandatory suspension or debarment of indicted contractors could have a “chilling effect” on contractor relations, the Defense Department’s top acquisition official told the Commission on Wartime Contracting on Monday.
In February, the congressionally chartered commission released an interim report on how the department could reduce waste, fraud and abuse through enhanced oversight and improved deployment of government resources in contingency contracting.

The report offered 32 specific legislative, regulatory and policy proposals, including limiting the government’s reliance on armed private security contractors. The commission’s final report is due out in July and likely will be considered by Congress for possible legislation.

Defense agreed with most of the suggestions in the interim report and already has begun to implement some, according to , undersecretary of Defense for acquisition, technology and logistics. But Carter told the panel that other ideas would do more harm than good.

For example, the commission recommends automatic suspension or debarment for indicted contractors. The group would mandate that suspensions and debarments no longer be subject to the terms of agreements the contractors make with the Justice Department — agreements that allow firms to avoid prosecution in criminal actions. Also, contingency contractors operating overseas should no longer be guaranteed a hearing to dispute facts in a suspension or debarment case, according to the report.

Carter disagreed with those recommendations, noting suspension and debarment officials need the flexibility and discretion to judge each case on its own facts and circumstances. (Click HERE for article)

TIPs for the DoJ on filing their case against KBR (Updated 5/3/2011)

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H- Site Managers (Left); (Center); (Right) slamming shots in , more than likely at Reddy's Hotel/Bar the .

Updated 5-3-2011: It appears Construction Company, the subcontractor at the center of this investigation, may be providing the DoJ with an abundance of pertinent information. contacted the DoJ and according to the most recent motion “Yuksel presented additional factual information bearing on the issues in the case.” One can only hope Yuksel does the right thing and gives the DoJ a list of names of the wrong doers!
~ Ms Sparky

The DoJ is preparing to join the Qui Tam suit against KBR for alleged materials fraud at the H-Sites, amounting to at least $31 million .  I thought it would be helpful to provide some names and photos of potential persons I feel need to be on the short list, for questioning or indictments, whichever suits the DoJ’s fancy.  Conveniently someone in , Louisiana has a website or read (pdf HERE) with photos and names of some of the key players.  How thoughtful of them to provide information and support  to the DoJ in investigating the misdeeds of KBR management at the H-Sites. I think if the DoJ continues to pull the string on all the H-Sites managers they will most likely find this is just the tip of the “fraud” iceberg.

I’ve written about John Reddy and his Towne Lodge Hotel (aka brothel) in Bangkok before. Reddy has been accused of using his former management position with KBR to solicit KBR employees in Iraq as clientele for his Bangkok business. Bruce Chirinko is named in at least one lawsuit against KBR for sexual harassment.

According to our readers this is not the first or the last of the fraud, waste and rampant abuse of power that has been going on since day one in Iraq and management has been the problem.  Most disturbing is when one of these managers gets caught they are allowed to resign and just hop in bed with another contractor and continue their wicked ways.  There isn’t a government contractor out there that doesn’t have one or more of these crooks on their payroll.  Yes, DynCorp, Fluor, L-3, Agility, ITT and of course KBR the finger is pointing at all of you!  Not to mention the fact that these are managers and many hold security clearances. (Read the rest of the story here…)

Army’s LOGCAP contract is epic failure

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We’ve been screaming mismanagement for years now. Hopefully the IG will investigate Fluor, Dyncorp and ’s contracts. The Army appears to just do what they want. I believe they maintain the position “It’s easier to ask for forgiveness than permission!” I compare the and IV contracts to the Wall Street Bailout! What a SCAM! ~ Ms Sparky

IG finds Army mismanaged contingency operations support contract

Robert Brodsky – January 7, 2011 – Army procurement officials failed to properly manage a key support contract for contingency operations in and , awarding millions of dollars of work without competition and disclosing bidders’ proprietary information without their knowledge or consent, according to a watchdog’s new report.

The report by the Defense Department inspector general found scores of internal control weaknesses associated with the ’s management of a support contract for the massive , which provides a host of services and in-theatre assistance to soldiers. Three firms — DynCorp International, Fluor Corp. and KBR — compete for task orders on the contract.

Inc. of Vienna, Va., in February 2007 won a $117 million support contract to help the Army plan and estimate costs of task orders on the LOGCAP IV contract. But, according to auditors, Army officials allowed the scope of ’s contract to expand to non-LOGCAP requirements without taking the proper steps to ensure competition and prevent conflicts of interest. (Read the rest of the story here…)