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Fraud Fight Has U.S. Seeking to Ban Record Number of Suppliers

Wishing the Government Accountability Office and the agencies in charge of oversight, a banner year of suspensions and debarments in 2012.  Here’s hoping the DoJ grows a set in the new year and prosecutes those who have “gotten away with it” for far too long.  Honestly Eric (Holder) you can’t possibly believe the American taxpayer is gullible enough to believe the only criminals making bank in Iraq and Afghanistan are the handful of petty criminals you have indicted to date?
~ Ms Sparky & Forseti

(Money News) – December 27, 2011 – The Obama administration, under pressure from Congress to weed out government suppliers for ethics violations or poor performance, has proposed to ban almost as many contractors this year as President George W. Bush did in his entire second term.

Federal agencies have proposed blocking 1,006 companies and individuals from contracting so far this year, as well as asking a judge to ban a unit of food-processing giant Cargill Inc. of Minneapolis, in a process known as debarment. That is 16 percent more than the 868 contractors that U.S. agencies proposed to block in all of 2010, and only 70 fewer than the 1,076 contractors that U.S. agencies sought to debar under Bush from 2005 to 2008, according to data provided by the General Services Administration.

Read the remainder of this entry »

Agility Unit Sues U.S. to Lift Freeze on Military Contracts (with links to court filings)

Laurence Viele Davidson – (Bloomberg) – December 7, 2011 – A unit of Agility, the Kuwaiti storage and logistics provider, sued to lift a freeze on government contracts imposed after the company was accused of defrauding the U.S.

Agility Defense & Government Logistics Services called the freeze “capricious” in a filing in federal court in Alabama. The Defense Logistics Agency, or DLA, an arm of the U.S. Department of Defense, suspended the unit from new contracts 10 days after Agility was indicted in November 2009.

Agility, which supplied food to U.S. forces in Iraq, paid premium prices for goods to inflate its profits, according to the indictment. Agility, formerly known in Kuwait as Public Warehousing Co., pleaded not guilty in August to the allegations in federal court in Atlanta.

DLA acknowledged that Alabama-based Agility Defense & Government, or DGS, faced “no allegations” of wrongdoing, the company said in the complaint. DGS’s business “has collapsed” since the indictment and its workforce has shrunk to fewer than 50 employees from about 1,200, according to the complaint.

DLA’s “shifting, inconsistent and unsubstantiated rationales for suspension render its continued suspension of DGS and Agility International arbitrary and capricious,” the company said. The claims of unfairness were brought under the Administrative Procedures Act.

Read the remainder of this entry »

KGL awarded US contract in Kuwait worth up to $157 million

According to the Defense Logistics Agency/Defense Distribution Center (DLA/DDC) KGL Logistics has been awarded  the very lucrative Contractor-Owned/Contractor-Operated (COCO) storage and distribution contract worth up to $157 million US dollars. This contract was award February 28, 2011.

KGL Logistics is the controversial Defense contractors with alleged business ties with Iran and is accused to killing a U.S. soldier LTC Rocky Baragona on May 19, 2003.

The Contractor-Owned/Contractor-Operated (COCO) storage and distribution contract, formerly known as the Defense Distribution Depot Kuwait (DDKS) contract,  had been awarded to Agility who has since been indicted for contract fraud accused of overcharging the U.S. Army over 41 months on $8.5 billion in contracts to provide food to soldiers in Iraq, Kuwait and Jordan. Currently Agility is suspended and not eligible to bid on USG contracts.

The COCO contract includes labor, material, equipment and indoor and outdoor storage space in support of storage and distribution services in the CENTCOM Area Of Responsibility (AOR).

According to the FedBizOps.Gov, the scope of this requirement includes planning and managing, receiving, storage, inventory, packaging, Care of Supplies in Storage (COSIS), stock control, stock selection, issue processing, packing, shipping , distribution of repair parts and HAZMAT processing of DLA managed material. All materials, tools, equipment, transportation, and any other items and services not government furnished shall be required, including maintenance of material handling equipment.

The indoor storage space requirement shall be a minimum of 700,000 square feet of collocated space configured for secure rack, bin, bulk and open storage. Also, office space for government personnel is required and is inclusive of the specified indoor space.

The outdoor storage space shall be a minimum of 800,000 square feet and be adjacent to the indoor space. The outdoor storage space is required to be capable of accommodating forklift, truck and trailer vehicles and static loads of full 20 and 40 foot MILVANs. The perimeter of the indoor and outdoor space shall be secured.

The estimated period of performance for this requirement consists of a six (6) month base period for transition /Phase in, and four (4) 1 year options for a total of $157 million US dollars.

Agility lost the 6 year $2 billion dollar Prime Vendor III contract to Anham in April of 2010.


Suspended, indicted defense contractor Agility loses Kuwait warehouse to fire

Agility warehouse in Kuwait burns January 16, 2011.

US Defense contractor, Agility formerly known as Public Warehousing Company (PWC), loses a  215,000 sq ft warehouse in Kuwait apparently occupied by their commercial customers only. Once source reports, no US army business was conducted there but another source states a limited amount of Prime Vendor supplies were stored here. I am still trying to confirm.

“The fire was brought under control shortly after it was discovered. The fire caused unspecified damages and Agility is not aware of any casualties but is working to make sure all employees are safe and accounted for,” it said.

Agility (PWC) was the Prime Vendor who provided food to the U.S. Military in Iraq. They recently recently lost this contract worth $6.4 billion to Anham after claims they overcharged the Army to the tune of nearly $100 million led to suspension and indictments. Read the remainder of this entry »

Did the Feds screw up the case against Agility on purpose?

Is anyone else starting to feel like the baby elephant? (Yes...that is poop on his head!)

What hell is going on here? I’m beginning to believe the DoJ and DoD screwed up this case on purpose so those 15 million pages of discovery don’t become a matter of public record and totally implicate the incompetence of the Department of Defense. Any other thoughts on that? ~ Ms Sparky

Judge urges feds to drop case against Agility

By Greg Bluestein – The Associated Press
Posted : Friday Sep 3, 2010 15:57:25 EDT

ATLANTA — The federal case against a Kuwait-based food supplier accused of defrauding the U.S. government of $68 million was dealt a stinging setback after a judge moved to block the charges.

U.S. Magistrate Judge Alan Baverman recommended that fraud charges against the Public Warehousing Co. not go forward because the indictment had not been properly served. A federal judge must now sign off on the move.

Prosecutors then asked Friday to have remaining charges dropped against the company’s U.S.-based subsidiary, Agility DGS Holdings. Prosecutor Barbara Nelan said she didn’t want the subsidiary to be a “straw man” that took the fall for its parent company’s wrongdoing.

The moves aren’t likely to be the end of the case. Nelan said that investigators are still gathering details on the company’s contracts and she did not rule out a new indictment for the companies.

“This investigation is broadening every day,” she said.

The food supplier’s attorneys, too, are bracing for new charges. Tom Bever, who represents Agility DGS Holdings, urged the judge to order prosecutors to hand over more than 15 million pages of discovery, even if the case is dismissed, so they can prepare for a new round of charges.

Prosecutors in November unveiled the indictment charging the Kuwaiti company with manipulating a complex funding formula to defraud the U.S. government of at least $68 million in contracts to supply troops in Iraq, Kuwait and Jordan.

But since then, federal authorities have been locked in a legal battle with the Kuwaiti company’s attorneys over whether the company was properly served with the charges.

Baverman sided with the supplier in a 91-page filing Thursday, finding that attempts to serve the Kuwaiti parent company with indictments were “insufficient.”

The indictment claimed that the Kuwaiti company provided false invoices and statements to a logistics center and knowingly inflated prices since 2003. And it said the company received rebates and discounts from vendors that it did not pass on to the government as required by the contract.

The company was also charged with inflating fees by asking vendors to manipulate the way the products were packed, enabling it to bill the government twice as much as it should have.

Agility said in a statement that it welcomed the judge’s findings, and that it hopes to resolve the dispute outside of the courtroom but it is prepared to “defend itself vigorously if that dialogue is not fruitful.”

“The company continues to believe this case involves a civil contract dispute and should not be a criminal matter,” it said. (click HERE for original article)