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(Press Release) – Washington, DC – May 24, 2012 – Today, Rep. Jason Chaffetz and Rep. John F. Tierney, Chairman and Ranking Member of the Subcommittee on National Security, Homeland Defense and Foreign Operations, sent joint letters to Supreme Foodservice GmbH and the Defense Logistics Agency (DLA) requesting a host of documents relating to their ongoing investigation into a multi-billion dollar contract to provide food and other supplies to American bases in Afghanistan.
“It is outrageous that DLA could ever be in the position of possibly overpaying any vendor by three quarters of a billion dollars- especially at a time when troop levels are being scaled back because funding is tight,” said Chairman Chaffetz. “The Subcommittee will work with the Department of Defense to investigate the facts and circumstances surrounding this apparent lack of oversight.”
“The American taxpayers refuse to accept a government contractor that bills more than $750 million in unsubstantiated charges, and they refuse to accept the Pentagon’s failure to manage this contract properly,” said Ranking Member Tierney. “Chairman Chaffetz and I plan to continue our vigorous bipartisan oversight efforts, to fully investigate the problems with this contract, and to determine how they will affect the impending award of the new contract.”
The claim, which was filed at the Armed Services Board of Contract Appeals in Virginia, alleges that U.S. government officials employed by DLA and the Department of Justice conspired to intentionally deprive Agility of performance-based fee that it was entitled to under the Second Prime Vendor Contract. Agility said under the contract it was entitled to distribution fees based on superior performance if it passed an objective evaluation by the Defense Supply Centre Philadelphia (DSCP) and was found to have met the listed requirements of achieving its targets for percentage of orders filled successfully. ~Asian Legal Business
Agility files $225 mln suit against U.S. agency
(Reuters) – April 24, 2012 – Kuwaiti logistics company Agility said on Tuesday it had filed for $225 million in claims against the U.S. Defense Logistics Agency (DLA), saying the agency had breached the terms of a contract.
Agility said in a statement U.S. government officials employed by the DLA and Department of Justice “conspired and acted in concert to intentionally deprive Agility of its rights under the Second Prime Vendor Contract.”
It said this was “breaching the contract’s express and implied terms and violating regulatory duties.”
The U.S. Embassy in Kuwait was not immediately available for comment.
The $225 million comprises the amount owed in performance-based distribution fees plus interest, Agility said. The contract entailed distributing food products to combat units.
Agility, the largest Gulf Arab logistics company, said it had filed the claims at the Armed Services Board of Contract Appeals in Virginia. (Click HERE for original article)
Report: Former Hill commander acted inappropriately toward females
Matthew D. LaPlante – The Salt Lake Tribune – December 20, 2010 – The former commander of Hill Air Force Base’s 75th Air Base Wing made repeated comments to female subordinates that call into question his “judgment, values and maturity,” according to a report by the Inspector General of the U.S. Department of Defense.
The investigation was prompted by complaints arising since Brig. Gen. Scott Chambers began his duties as commander of the joint Defense Logistics Agency’s Defense Supply Center in Philadelphia, a job from which he has since been dismissed.
The inspection does not include any allegations stemming from Chambers’ time at Hill, where for most of 2006 and 2007 he led a unit that provides security, medical care, housing and other on-base services for tens of thousands of airmen and civilians. The report may, however, shed light on his service during that time. Airmen and their families complained that Hill’s leaders, including Chambers, were unresponsive to their concerns about issues that included the cleanup of chemically tainted soils near base housing, the presence of mold in older base housing and the rise in suicides among Hill’s work force.
Air Force leaders initially declined requests to view the investigation report but provided a copy to The Salt Lake Tribune within hours of a formal Freedom of Information Act request.
Here’s an article from today’s issue of Government Executive about Brig. Gen. Scott D. Chambers. Click HERE to read Ms Sparky’s post from Friday, December 10 on this subject. It’s good to see the media is picking up this story.
Defense Logistics Agency relieves key commander
Katherine McIntire Peters – December 13, 2010 – The senior military officer in charge of purchasing food, clothing, medical supplies, construction materials and equipment for troops in Iraq and Afghanistan was relieved of his command on Thursday.
Air Force Brig. Gen. Scott Chambers had been commander of DLA Troop Support since Oct. 6, 2009, before he was “returned to the Air Force” on Dec. 9, according to an agency spokeswoman. DLA annually spends $14.5 billion on contracts to support troops in war zones.
In a memo to Troop Support team members, DLA Director Vice Adm. Alan Thompson said he relieved Chambers as commander “based upon substantiated allegations contained in a Department of Defense Inspector General’s investigative report.” Officials at DLA and the Air Force declined to describe the nature of the allegations.
Thompson tapped Richard Ellis, a retired Navy officer and contracting executive who pioneered the use of online reverse auctions in the federal government, to serve as acting commander of the troop support organization until further notice.
Based upon substantial allegations contained in a Department of Defense Inspector General’s Investigative Report, US Air Force Brigadier General Scott D. Chambers, Commander of Defense Logistics Agency (DLA) Troop Support has been relieved of his command and has returned to the Air Force. This is effective December 9, 2010.
Defense Logistics Agency Director Alan S. Thompson has appointed Mr. Richard Ellis as Acting Commander, DLA Troop Support.
As of the publishing of this post I have yet to obtain a copy of the Department of Defense Inspect0r General’s report. It will be interesting to see what the Department of Defense Inspector General has uncovered in this latest report. If the report is made available to the public I will link to it.
Anyone following Defense contracting is aware the Defense contracting industry has been wracked with fraud, waste and abuse. There have been countless convictions of contracting officers for both contractors and the Defense Department.
I have sent a request for information to the Defense Logistics Agency asking for a statement and more information, but have not received a response as of the publishing of this post. If you have a copy of the report or more information regarding Brig Gen Scott D. Chambers being relieved of command and returned to the Air Force please let us know.
Updated December 13, 2010:
Here’s the email that was forwarded to me. I can’t confirm if this is actually the original email or if it’s in it’s entirety.
I wanted to inform you that based upon substantiated allegations contained in a Department of Defense Inspector General’s Investigative Report, effective 9 December 2010, I have relieved Brigadier General Scott D. Chambers as Commander, DLA Troop Support.
I have appointed Mr. Richard Ellis as Acting Commander, DLA Troop Support.
Mr. Ellis’ appointment as Acting Commander will remain in effect until further notice.
VADM Alan S. Thompson
GovExec.com just came out with an article on this issue. You can read that HERE.
Updated: December 15, 2010:
In a recent article in the AirForce Times is state:
In an e-mailed message to DLA workers, Navy Vice Adm. Alan Thompson, the head of the logistics agency, said he relieved Chambers of command based on “substantiated allegations” in a Defense Department inspector general report.
The allegations involved “personal misconduct” and were not connected to “past or ongoing” business operations at the supply center, McCaskill said.