Friday, October 12, 2007
State Dept. may limit or phase out use of private security guards in Iraq
(AP) -- The State Department may phase out or limit the use of private security guards in Iraq, which could mean canceling Blackwater USA's contract or awarding it to another company in line with an Iraqi government demand, The Associated Press has learned. Such steps would be difficult given U.S. reliance on Blackwater and other contractors, but they are among options being studied during a comprehensive review of security in Iraq, two senior officials said.
Condoleezza Rice to order the top-to-bottom review from a commission headed by Patrick Kennedy, one of the State Department's most experienced management officials. Kennedy has been told to concentrate on several key issues, according to the officials, who spoke on condition of anonymity because the review is still under way. Among them:
-Changes to the rules of engagement under which State Department security contractors operate, particularly for approaching suspicious vehicles, which is at the crux of the Sept. 16 incident. Blackwater insists its guards were fired upon, although Iraqi witnesses and the Iraqi government maintain the guards opened fire with no provocation when a vehicle got too close.
-Whether Blackwater's secretive corporate culture, reputed to have encouraged a "cowboy-like mentality," has led to its employees being more likely to violate or stretch the existing rules than those of the two other private security firms, Dyncorp and Triple Canopy, the State Department uses in Iraq.
-Whether it's feasible to eliminate or drastically curtail the use of private foreign contractors to protect U.S. diplomats in Iraq. And, if so, how to replace them.
Rice is eager for changes and has already accepted and implemented initial steps Kennedy urged in a preliminary report last week. They included improving government oversight of Blackwater by having federal agents accompany convoys and installing video cameras in their vehicles. Officials in the tight-knit world of security operatives in Baghdad said Blackwater was preparing a reorganization and possible downsizing. The officials spoke on condition of anonymity because of the issue's sensitivity. The company, based in Moyock, N.C., does not speak publicly about its operations or plans. Calls and e-mail messages left with Blackwater on Wednesday were not returned.
A top aide to Prime Minister Nouri al-Maliki told the AP that Washington was considering the findings of the Iraqi government's report into the incident and calls for reform. "But so far there has been no concrete answer from the U.S. Embassy showing it was definitely going to drop Blackwater," the aide said. The aide said the al-Maliki government told the U.S. Embassy, "We will draft and pass laws that would lift the immunity on these security companies to stop their reckless behavior."
Kennedy has been in Iraq for nearly two weeks with one of three outside experts Rice named to the commission, Eric Boswell, a former diplomat and intelligence official. The other two, retired Army Gen. George Joulwan and former Ambassador Stapleton Roy, were being briefed on the mission at the State Department on Wednesday before heading to Baghdad.
The officials said Kennedy's team was not expected to recommend eliminating all private contractors because it would have a profound impact on how U.S. diplomats work in Iraq. The State Department's own Bureau of Diplomatic Security lacks both the manpower and equipment, notably helicopters, to do the job, they said.
Blackwater is now the biggest of the three firms working for the department in Iraq with about 1,000 employees and handles protection in and around Baghdad, the most dangerous areas of the country. It has been paid as much as $1 billion for its work in Iraq. Dyncorp and Triple Canopy, which work in the north and south, are far smaller and face resource constraints.
Under the terms of the department's Worldwide Personal Protective Security contract, which covers privately contracted guards for diplomats in Iraq, Blackwater, Dyncorp and Triple Canopy are the only three companies eligible to bid on specific task orders there. If Blackwater goes, the slack would almost certainly have to be picked up by one or more other companies, which may require certifying other firms to bid, including non-U.S. ones, the officials said.
Of interest to the department is the possibility of forming Iraqi companies with Iraqi employees to protect U.S. diplomats as local guards do for embassy staff in other countries, they said. That would bring the guards fully under the jurisdiction of Iraqi law but is not a short-term option given inadequate training facilities. The Pentagon has been reluctant to provide security for diplomats but another alternative might be joint State-Defense department patrols. Yet another would be hiring Blackwater and other private guards as temporary U.S. government employees, the officials said.
Condoleezza Rice to order the top-to-bottom review from a commission headed by Patrick Kennedy, one of the State Department's most experienced management officials. Kennedy has been told to concentrate on several key issues, according to the officials, who spoke on condition of anonymity because the review is still under way. Among them:
-Changes to the rules of engagement under which State Department security contractors operate, particularly for approaching suspicious vehicles, which is at the crux of the Sept. 16 incident. Blackwater insists its guards were fired upon, although Iraqi witnesses and the Iraqi government maintain the guards opened fire with no provocation when a vehicle got too close.
-Whether Blackwater's secretive corporate culture, reputed to have encouraged a "cowboy-like mentality," has led to its employees being more likely to violate or stretch the existing rules than those of the two other private security firms, Dyncorp and Triple Canopy, the State Department uses in Iraq.
-Whether it's feasible to eliminate or drastically curtail the use of private foreign contractors to protect U.S. diplomats in Iraq. And, if so, how to replace them.
Rice is eager for changes and has already accepted and implemented initial steps Kennedy urged in a preliminary report last week. They included improving government oversight of Blackwater by having federal agents accompany convoys and installing video cameras in their vehicles. Officials in the tight-knit world of security operatives in Baghdad said Blackwater was preparing a reorganization and possible downsizing. The officials spoke on condition of anonymity because of the issue's sensitivity. The company, based in Moyock, N.C., does not speak publicly about its operations or plans. Calls and e-mail messages left with Blackwater on Wednesday were not returned.
A top aide to Prime Minister Nouri al-Maliki told the AP that Washington was considering the findings of the Iraqi government's report into the incident and calls for reform. "But so far there has been no concrete answer from the U.S. Embassy showing it was definitely going to drop Blackwater," the aide said. The aide said the al-Maliki government told the U.S. Embassy, "We will draft and pass laws that would lift the immunity on these security companies to stop their reckless behavior."
Kennedy has been in Iraq for nearly two weeks with one of three outside experts Rice named to the commission, Eric Boswell, a former diplomat and intelligence official. The other two, retired Army Gen. George Joulwan and former Ambassador Stapleton Roy, were being briefed on the mission at the State Department on Wednesday before heading to Baghdad.
The officials said Kennedy's team was not expected to recommend eliminating all private contractors because it would have a profound impact on how U.S. diplomats work in Iraq. The State Department's own Bureau of Diplomatic Security lacks both the manpower and equipment, notably helicopters, to do the job, they said.
Blackwater is now the biggest of the three firms working for the department in Iraq with about 1,000 employees and handles protection in and around Baghdad, the most dangerous areas of the country. It has been paid as much as $1 billion for its work in Iraq. Dyncorp and Triple Canopy, which work in the north and south, are far smaller and face resource constraints.
Under the terms of the department's Worldwide Personal Protective Security contract, which covers privately contracted guards for diplomats in Iraq, Blackwater, Dyncorp and Triple Canopy are the only three companies eligible to bid on specific task orders there. If Blackwater goes, the slack would almost certainly have to be picked up by one or more other companies, which may require certifying other firms to bid, including non-U.S. ones, the officials said.
Of interest to the department is the possibility of forming Iraqi companies with Iraqi employees to protect U.S. diplomats as local guards do for embassy staff in other countries, they said. That would bring the guards fully under the jurisdiction of Iraqi law but is not a short-term option given inadequate training facilities. The Pentagon has been reluctant to provide security for diplomats but another alternative might be joint State-Defense department patrols. Yet another would be hiring Blackwater and other private guards as temporary U.S. government employees, the officials said.
Labels: Ambassador Stapleton Roy, Army Gen. George Joulwan, Blackwater, DynCorp, Eric Boswell, Nouri Al-Maliki, Patrick Kennedy, Triple Canopy, Worldwide Personal Protective Security contract
Thursday, July 19, 2007
Defense contractors challenge LOGCAP IV award, seek stay from GAO
Contracts
(Government Executive) - Faced with the prospect of missing out on the Army's most lucrative logistics contract in Iraq, a pair of teams of defense contractors is challenging the service's decision to award the work to three rival companies. Last week, Contingency Management Group LLC, a team composed of AECOM Government Services, Shaw Group and PAE Government Services, filed a protest with the Government Accountability Office, claiming that the Army's Sustainment Command improperly evaluated the group's proposal for the Logistics Civil Augmentation Program (LOGCAP) IV contract. The team is seeking a stay of the new contract until GAO can review the July 11 protest.
Two days later, IAP Worldwide Services Inc., a Cape Canaveral, Fla., contractor, filed its own protest, also citing improper technical or price evaluations, according to Michael Golden, GAO's chief procurement attorney. IAP led a team of contractors that included industry giants Lockheed Martin, CACI and Blackwater. Officials with Contingency Management Group and IAP both declined to discuss the reasons for the protest.
The Army awarded its mammoth 10-year LOGCAP IV contract last month to three firms: the incumbent contractor, Kellogg, Brown and Root Services of Houston; former contract holder DynCorp International LLC of Fort Worth, Texas; and Fluor Intercontinental Inc. of Greenville, S.C. The three companies are each capped at $5 billion per year, although the Army does not expect the firms to reach the maximum value in any given year.
A fourth contractor, Serco Inc. of Vienna, Va., was awarded a $225 million support contract last February. The Army says Serco will assist in its planning and provide independent cost estimates, but will not play any oversight role or conduct any inherently governmental work.
In an e-mailed statement, KBR deferred questions about the protests to the Army, stating only that the company is "proud to have been chosen as one of three logistics support providers under the LOGCAP IV contract. We look forward to continuing our service to the U.S. forces deployed in the Middle East."
The three prime contractors will compete to deliver fuel, water and food, as well as field operations such as postal services, laundry and sanitation, to troops stationed in Iraq and Afghanistan. The indefinite quantity/indefinite delivery contract has a one-year base with nine option years and could be worth as much as $150 billion.
The use of multiple contractors is a departure from the sole-source strategy the Army has employed since the first LOGCAP contract was awarded in 1992. The change is "designed to enhance competition and reduce overall risk," said Daniel Carlson, a spokesman for the Army.
Previous incarnations of the logistics contract relied primarily on cost-plus task orders in which the Army and the contractor negotiated a price based on an estimate and adjusted the cost as needed. The government then paid the contractor a base reimbursement fee -- typically 1 percent -- on every task order and an additional 2 percent award fee if the work was done efficiently and honestly.
But watchdogs say the contract has been prone to abuse. KBR, which until recently was a subsidiary of Halliburton, was roundly criticized for its work on the 2001 LOGCAP III contract. Reports by GAO, the Defense Department inspector general and the Defense Contract Audit Agency found KBR overbilled the government for fuel and failed to justify $1.8 billion worth of work in Iraq and Kuwait.
And just days after the Army awarded the LOGCAP IV contract, the Special Inspector General for Iraq Reconstruction released a report alleging that KBR provided its employees with better housing than U.S. soldiers, overspent on food by $4.5 million and failed to provide accurate measurements of the fuel services it provided. KBR is in the process of reviewing the report, company spokeswoman Heather Browne said.
DynCorp, meanwhile, has been rapped for providing vague invoices on a State Department contract in Iraq, while Fluor was heavily criticized for its work on a temporary housing contract for Gulf Coast residents in the wake of Hurricane Katrina.
The Army plans to begin using its new LOGCAP IV contract in October, although the protests could delay its implementation. KBR's current LOGCAP contract expires in December, but the Army could exercise an option and extend it if needed.
Two days later, IAP Worldwide Services Inc., a Cape Canaveral, Fla., contractor, filed its own protest, also citing improper technical or price evaluations, according to Michael Golden, GAO's chief procurement attorney. IAP led a team of contractors that included industry giants Lockheed Martin, CACI and Blackwater. Officials with Contingency Management Group and IAP both declined to discuss the reasons for the protest.
The Army awarded its mammoth 10-year LOGCAP IV contract last month to three firms: the incumbent contractor, Kellogg, Brown and Root Services of Houston; former contract holder DynCorp International LLC of Fort Worth, Texas; and Fluor Intercontinental Inc. of Greenville, S.C. The three companies are each capped at $5 billion per year, although the Army does not expect the firms to reach the maximum value in any given year.
A fourth contractor, Serco Inc. of Vienna, Va., was awarded a $225 million support contract last February. The Army says Serco will assist in its planning and provide independent cost estimates, but will not play any oversight role or conduct any inherently governmental work.
In an e-mailed statement, KBR deferred questions about the protests to the Army, stating only that the company is "proud to have been chosen as one of three logistics support providers under the LOGCAP IV contract. We look forward to continuing our service to the U.S. forces deployed in the Middle East."
The three prime contractors will compete to deliver fuel, water and food, as well as field operations such as postal services, laundry and sanitation, to troops stationed in Iraq and Afghanistan. The indefinite quantity/indefinite delivery contract has a one-year base with nine option years and could be worth as much as $150 billion.
The use of multiple contractors is a departure from the sole-source strategy the Army has employed since the first LOGCAP contract was awarded in 1992. The change is "designed to enhance competition and reduce overall risk," said Daniel Carlson, a spokesman for the Army.
Previous incarnations of the logistics contract relied primarily on cost-plus task orders in which the Army and the contractor negotiated a price based on an estimate and adjusted the cost as needed. The government then paid the contractor a base reimbursement fee -- typically 1 percent -- on every task order and an additional 2 percent award fee if the work was done efficiently and honestly.
But watchdogs say the contract has been prone to abuse. KBR, which until recently was a subsidiary of Halliburton, was roundly criticized for its work on the 2001 LOGCAP III contract. Reports by GAO, the Defense Department inspector general and the Defense Contract Audit Agency found KBR overbilled the government for fuel and failed to justify $1.8 billion worth of work in Iraq and Kuwait.
And just days after the Army awarded the LOGCAP IV contract, the Special Inspector General for Iraq Reconstruction released a report alleging that KBR provided its employees with better housing than U.S. soldiers, overspent on food by $4.5 million and failed to provide accurate measurements of the fuel services it provided. KBR is in the process of reviewing the report, company spokeswoman Heather Browne said.
DynCorp, meanwhile, has been rapped for providing vague invoices on a State Department contract in Iraq, while Fluor was heavily criticized for its work on a temporary housing contract for Gulf Coast residents in the wake of Hurricane Katrina.
The Army plans to begin using its new LOGCAP IV contract in October, although the protests could delay its implementation. KBR's current LOGCAP contract expires in December, but the Army could exercise an option and extend it if needed.
Labels: Blackwater, CACI, Contingency Management Group LLC, DynCorp, Fluor, GAO, Halliburton, IAP Worldwide Services Inc., KBR, Lockheed Martin, LOGCAP IV, PAE Government Services, Shaw Group
