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Tamimi, the unlucky “13th defendant” settles with the U.S.

Saudi Arabia-Based Tamimi Global Company to Pay U.S. $13 Million to Resolve Criminal and Civil Allegations of Kickbacks and Illegal Gratuities

KBR Subcontractor Provided Dining Services in Iraq and Kuwait

(DoJ) – WASHINGTON – September 16, 2011 – Saudi Arabia-based Tamimi Global Company Ltd (TAFGA) has agreed to pay the United States $13 million to resolve criminal and civil allegations that the company paid kickbacks to a Kellogg Brown & Root Inc. (KBR) employee and illegal gratuities to a former U.S. Army sergeant, in connection with contracts in support of the Army’s operations in Iraq and Kuwait. The civil matter was handled by the Justice Department’s Civil Division, and the criminal matter was handled by the U.S. Attorney’s Office for the Central District of Illinois.

The U.S. alleges that employees of TAFGA paid kickbacks to KBR to obtain subcontracts awarded under LOGCAP (Logistics Civil Augmentation Program) III – KBR’s prime contract with the U.S. Army to provide logistical support to the military in conflicts abroad, including Iraq and Afghanistan. LOGCAP III is the third generation of contracts under the program. KBR performs its obligations under the contract largely through subcontractors such as TAFGA.

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Army’s LOGCAP contract is epic failure

We’ve been screaming mismanagement for years now. Hopefully the IG will investigate Fluor, Dyncorp and KBR’s LOGCAP 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 LOGCAP III 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 Iraq and Afghanistan, 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 Army Sustainment Command’s management of a support contract for the massive Logistics Civil Augmentation Program, 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 LOGCAP IV contract.

Serco 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 Serco’s contract to expand to non-LOGCAP requirements without taking the proper steps to ensure competition and prevent conflicts of interest. Read the remainder of this entry »

KBR loses $25M in award fee bonuses for poor performance in Iraq (updated)

They didn’t just lose $25M….they got ZERO! This is a classic example of how one person can make a difference. I do believe KBR underestimated Cheryl Harris’ tenacity. I applaud you Cheryl!

Contractor linked to Iraq death loses $25M in fees

By KIMBERLY HEFLING
Associated Press Writer
Feb 24, 10:42 PM EST

Cheryl Harris with her son Staff Sgt. Ryan Maseth. Ryan, 24, was electrocuted in his shower in Iraq on Jan. 2, 2008. Cheryl has filed a wrongful death lawsuit against KBR. That suit is currently sitting in the 3rd Circuit Court of Appeals awaiting a decision.

WASHINGTON (AP) — Military contractor KBR has lost about $25 million in bonuses from the government because of “failed” worked done in Iraq during the time a Green Beret was electrocuted in a barracks shower it was responsible for maintaining.

The U.S. Army Sustainment Command said in a statement released to The Associated Press Wednesday night that the Houston-based company failed to meet a level deserving of an award fee payment for work it did during the first four months of 2008. Award fees are written into contracts as an incentive for the contractors to do quality work.

The Army statement did not specifically mention the January 2008 death of 24-year-old Staff Sgt. Ryan Maseth of Pittsburgh in the statement but said a task force that has extensively reviewed electrical work in Iraq was consulted in making the decision as was the U.S. Army Criminal Investigation Command, which investigated Maseth’s death, but did not press charges against KBR.

Dan Carlson, a spokesman for the Army Sustainment Command, said in an e-mail that “multiple factors” led to the decision. Read the remainder of this entry »

KBR threatens Army with reduced support in Iraq

Report finds Army broke contracting regulations in Iraq

Govexec.com – By Robert Brodsky – February 23, 2010

The Army broke federal procurement rules in 2004, when two commanding generals improperly directed a contracting officer to pay millions of dollars in fees to KBR Inc., according to a report released on Monday by the Defense Department inspector general.

Under the Federal Acquisition Regulation, the Army Sustainment Command should have withheld 15 percent of its payments to KBR under a cost-reimbursement task order through the massive Logistics Civil Augmentation Program III, because terms and price had not been finalized.

But when a contracting officer tried to withhold the funds, she was overruled by Army leaders who said KBR warned the move could hurt battlefield operations. Read the remainder of this entry »