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DoJ warns of fallout in Army-KBR contract dispute

Posted June 6, 2013 By Ms Sparky

Jim McElhatton – (Federal Times) – June 4, 2013 – The outcome of a court battle between the Army and KBR over the final stages of LOGCAP III, the largest government services contract in U.S. history, could affect tens of thousands of federal contracts while creating “enormous uncertainty” for vendors and the government alike, according to the Justice Department.

The warning, delivered in the footnote of a recent U.S. Court of Federal Claims pleading, marks the latest development in a dispute to decide how to close out the 12-year-old, $38 billion military logistics contract supporting military operations in Iraq.

While the Army has pushed to change the LOGCAP III pricing structure to a firm, fixed-price basis, KBR has sued to keep the closeout work under the existing cost-reimbursable arrangement. Read the remainder of this entry »

(Video from Automotive Management Services Website)

Wasteful spending on Afghanistan’s security has continued to plague the U.S. government, with the latest revelation of nearly $7 million spent to maintain police vehicles that either were destroyed or inoperable. ~Noel Brinkerhoff, AllGov

Ernesto Londoño – (The Washington Post) – January 17, 2013 – The U.S. government paid $6.8 million for maintenance of more than 7,000 Afghan police vehicles that had been destroyed or were out of commission, according to an inspector general report released Thursday.

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Adam Zagorin – (POGO) – January 17, 2013 – Private guards responsible for protecting what may be the most at-risk U.S. diplomatic mission in the world — the embassy in Kabul, Afghanistan — say security weaknesses have left it dangerously vulnerable to attack.

In interviews and written communications with the Project On Government Oversight (POGO), current and former guards said a variety of shortcomings, from inadequate weapons training to an overextended guard force, have compromised security there — security provided under a half-a-billion-dollar contract with Aegis Defense Services, the U.S. subsidiary of a British firm. “[I]f we ever got seriously hit [by terrorists], there is no doubt in my mind the guard force here would not be able to handle it, and mass casualties and mayhem would ensue,” a guard serving at the embassy wrote in a late November message to POGO.

“[I]f we ever got seriously hit [by terrorists], there is no doubt in my mind the guard force here would not be able to handle it, and mass casualties and mayhem would ensue.”

In July, dissatisfaction boiled over when more than 40 members of the embassy’s Emergency Response Team signed a petition Read the remainder of this entry »

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Army drops suspension of contractor in criminal probe

Posted December 31, 2012 By Forseti

The Army reversed the suspension Nov. 15, allowing Camille Chidiac to bid for new federal contracts, including an extension of the propaganda contract in January.

Photo Leonie Industries’ Website

Tom Vanden Brook – (USA Today) – WASHINGTON — December 30, 2012 – The Army has lifted its suspension of the owner of its top propaganda contractor in Afghanistan, despite the Pentagon’s ongoing criminal investigation against him for late tax payments, treatment of his Afghan employees and an online smear campaign he launched against USA TODAY.

The Army had suspended Camille Chidiac, co-owner of Leonie Industries, in May after he admitted to setting up disparaging social media and web sites against two journalists from the newspaper. At the time, Defense Secretary Leon Panetta ordered “appropriate action” taken against Chidiac, according Pentagon press secretary George Little, who called his actions “intolerable.”

The Army reversed the suspension Nov. 15, allowing Chidiac to bid for new federal contracts, including an extension of the propaganda contract in January. The Army, in a statement from spokesman Matthew Bourke, decided that Chidiac should be reinstated because the Army concluded that he conducted the smear campaign on his own time without Leonie’s resources. Chidiac put his ownership stake in a trust in an agreement reached with the Army. That prompted the Army to lift its suspension of Chidiac, according to Bourke.

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KBR November Litigation Round-Up

Posted November 26, 2012 By Ms Sparky

NEIL GORDON – (POGO) – November 26, 2012 – November has been a very bad month for defense contractor KBR.

KBR is the federal government’s primary logistics support contractor in Iraq, receiving tens of billions of dollars in business from the Department of Defense over the last decade, much of that under the U.S. Army’s monopolistic Logistics Civil Augmentation Program (LOGCAP) III contract.

In early November, an Oregon federal jury returned an $85.2 million verdict against KBR for exposing military personnel to toxic chemicals at an Iraqi water treatment facility in 2003. The jury found that KBR had “acted with reckless and outrageous indifference to a highly unreasonable risk of harm and conscious indifference to the health, safety, and welfare” of the plaintiffs. A case raising similar claims is pending in KBR’s hometown of Houston, Texas, and will soon go to trial.

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