Tuesday, July 31, 2007
British firms emerge as finalists for largest U.S. security contract in Iraq
Contracts, Reconstruction
(Washington Post) - Two British firms have emerged as finalists to win the largest U.S. security contract in Iraq, according to sources familiar with the matter. In what has become a contentious competition, Aegis Defence Services and ArmorGroup International are considered top contenders for a contract worth up to $475 million to provide intelligence services to the U.S. Army and security for the U.S. Army Corps of Engineers on reconstruction work in Iraq. Aegis won the initial contract in 2004, a three-year, $293 million deal.
The Army has eliminated another British firm, Erinys Iraq, but that company is contesting the decision in sealed documents filed in the U.S. Court of Federal Claims, said sources who spoke on condition of anonymity because the contract review process is confidential. It was unclear yesterday whether the Army had chosen other finalists, but two other firms confirmed that they, too, are out of the running -- Control Risks of Britain and Blackwater Security Consulting of North Carolina.
The battle for the lucrative contract has drawn the attention of members of Congress who have questioned the use of private security contractors, about 20,000 of whom operate in Iraq, and whether the military should be outsourcing such critical tasks as security and intelligence to private firms. Based on a request from a member of Congress, the Special Inspector General for Iraq Reconstruction is conducting its second audit of Aegis.
Meanwhile, federal lawmakers have requested that the Government Accountability Office, Congress's investigative arm, also look into the use of private security contractors in Iraq. The GAO has begun to review contractors there, building on previous reports, spokesman Paul Anderson said. "We're still early in the process."
"The Army's decision to once again remove Erinys from the bidding process is bad economics and demonstrates the fundamental flaws in this procurement," said an Erinys spokesman. "We are taking steps to ensure that our proposal is given fair treatment on a level playing field, in accordance with applicable government laws and regulations."
ArmorGroup spokesman Patrick Toyne Sewell declined to comment. ArmorGroup already is one of the largest security firms in Iraq, with more than 1,200 employees. Aegis, which also has about 1,200 contractors in Iraq, declined as well to comment on the new contract, but Kristi M. Clemens, the firm's executive vice president, touted its work on the current contract.
The Army is expected to make a final decision soon. "We are proceeding with discussions and preparation for award," said Chuck D. Martino, deputy chief of staff of the Joint Contracting Command-Iraq/Afghanistan in Baghdad.
The Army has eliminated another British firm, Erinys Iraq, but that company is contesting the decision in sealed documents filed in the U.S. Court of Federal Claims, said sources who spoke on condition of anonymity because the contract review process is confidential. It was unclear yesterday whether the Army had chosen other finalists, but two other firms confirmed that they, too, are out of the running -- Control Risks of Britain and Blackwater Security Consulting of North Carolina.
The battle for the lucrative contract has drawn the attention of members of Congress who have questioned the use of private security contractors, about 20,000 of whom operate in Iraq, and whether the military should be outsourcing such critical tasks as security and intelligence to private firms. Based on a request from a member of Congress, the Special Inspector General for Iraq Reconstruction is conducting its second audit of Aegis.
Meanwhile, federal lawmakers have requested that the Government Accountability Office, Congress's investigative arm, also look into the use of private security contractors in Iraq. The GAO has begun to review contractors there, building on previous reports, spokesman Paul Anderson said. "We're still early in the process."
"The Army's decision to once again remove Erinys from the bidding process is bad economics and demonstrates the fundamental flaws in this procurement," said an Erinys spokesman. "We are taking steps to ensure that our proposal is given fair treatment on a level playing field, in accordance with applicable government laws and regulations."
ArmorGroup spokesman Patrick Toyne Sewell declined to comment. ArmorGroup already is one of the largest security firms in Iraq, with more than 1,200 employees. Aegis, which also has about 1,200 contractors in Iraq, declined as well to comment on the new contract, but Kristi M. Clemens, the firm's executive vice president, touted its work on the current contract.
The Army is expected to make a final decision soon. "We are proceeding with discussions and preparation for award," said Chuck D. Martino, deputy chief of staff of the Joint Contracting Command-Iraq/Afghanistan in Baghdad.
Labels: Aegis Defense Services, Armorgroup, Blackwater Security Consulting, Chuck D. Martino, contracts, Control Risks, Erinys Iraq, GAO, Iraq, Iraq reconstruction, USACE
Monday, April 02, 2007
quarter of U.K. Iraq aid budget spent on private security companeis
Security, Finance
(BI-ME) - The UK authorities have spent US$330 million on hiring private security companies in Iraq in the past four years, the equivalent to around a quarter of the entire Iraq aid budget, it has emerged. A further US$80 million has been spent on private guards in Afghanistan since 2004. The security costs, mainly for guards for British staff and facilities, were revealed in a parliamentary answer from the Foreign Office Minister Kim Howells. They reflect the huge quantities of money that the UK and the US have had to divert from humanitarian and reconstruction resources to deal with the deteriorating security environment in both countries.
In Iraq, a total of £145 million (US$290 million) has been spent on security guards to protect UK assets, with a further £20 million (US$40 million) going on police training and security advisers to the Iraqi government. The UK Iraqi aid budget over the same period was £644 million (US$1,288 million). The big beneficiaries have been the New York-based risk consulting company Kroll and the UK companies ArmorGroup and Control Risks. ArmorGroup, which is headed by the Conservative MP Sir Malcolm Rifkind, earned 50% of its revenues from Iraq last year.
Five years ago the UK government published a Green Paper on regulating private security companies but political action has not been forthcoming. John Hilary, Campaigns Director of War on Want, which has been pressing for legislation, says there is political resistance at the top. "As the pressure mounts on Blair and Brown to withdraw troops from Iraq, there is a growing possibility that their role will be increasingly taken up by these private military companies," he said. "It's easier for the government to allow this privatisation of war and turn a blind eye to regulation. It may be politically expedient but this flies in the face of a more ethical approach to actions of British companies overseas."
The rising cost of security at the expense of development aid reflects the American experience. According to the latest audit of US spending, 34% of the US$21 billion allocated for Iraqi reconstruction has been diverted to security, an increase from US$4.56 billion to US$6.31 billlion. For private contractors, the cost of security is now running at an average of 12% for each contract.
Chunks of the UK's Department for International Development's aid budget have also been diverted, according to latest figures from officials in Baghdad. In the last financial year more than £6 milllion (US$12 million) has been spent on private security companies. Over the four-year period, almost US$100 million has been allocated to the Foreign Office-led programme aimed at reforming the Iraqi police and prison service. The programme has yet to achieve its main objective of cleaning up the militia-infiltrated police in Basra, the UK policed area in the South of Iraq.
In Iraq, a total of £145 million (US$290 million) has been spent on security guards to protect UK assets, with a further £20 million (US$40 million) going on police training and security advisers to the Iraqi government. The UK Iraqi aid budget over the same period was £644 million (US$1,288 million). The big beneficiaries have been the New York-based risk consulting company Kroll and the UK companies ArmorGroup and Control Risks. ArmorGroup, which is headed by the Conservative MP Sir Malcolm Rifkind, earned 50% of its revenues from Iraq last year.
Five years ago the UK government published a Green Paper on regulating private security companies but political action has not been forthcoming. John Hilary, Campaigns Director of War on Want, which has been pressing for legislation, says there is political resistance at the top. "As the pressure mounts on Blair and Brown to withdraw troops from Iraq, there is a growing possibility that their role will be increasingly taken up by these private military companies," he said. "It's easier for the government to allow this privatisation of war and turn a blind eye to regulation. It may be politically expedient but this flies in the face of a more ethical approach to actions of British companies overseas."
The rising cost of security at the expense of development aid reflects the American experience. According to the latest audit of US spending, 34% of the US$21 billion allocated for Iraqi reconstruction has been diverted to security, an increase from US$4.56 billion to US$6.31 billlion. For private contractors, the cost of security is now running at an average of 12% for each contract.
Chunks of the UK's Department for International Development's aid budget have also been diverted, according to latest figures from officials in Baghdad. In the last financial year more than £6 milllion (US$12 million) has been spent on private security companies. Over the four-year period, almost US$100 million has been allocated to the Foreign Office-led programme aimed at reforming the Iraqi police and prison service. The programme has yet to achieve its main objective of cleaning up the militia-infiltrated police in Basra, the UK policed area in the South of Iraq.
Labels: Armorgroup, Control Risks, Foreign Office Minister Kim Howells, Kroll, private security companies, Sir Malcolm Rifkind
