Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

KBR: Feds Should Pay Lawsuit Damages

Associated Press at ABC News  November 28, 2012

An Iraq war contractor that lost an $85 million verdict to a group of sickened Oregon soldiers has filed a lawsuit seeking to force the federal government to pay the soldiers’ damages.

In early November, 12 Oregon National Guard soldiers won the verdict against Kellogg Brown and Root, an engineering and construction firm that helped lead the reconstruction work in post-war Iraq. The soldiers were exposed to a toxin while guarding an Iraqi water plant.

In the new lawsuit, KBR also demands that the government pay more than $15 million in its attorneys’ fees.

At the heart of the suit is a so-called indemnification clause that KBR alleges it agreed to with the U.S. Army Corps of Engineers in March 2003. The clause was designed to protect KBR against “unusually hazardous risks” in its work in Iraq.

In a Nov. 16 filing in the U.S. Court of Federal Claims, KBR argues the clause makes the government responsible for the results of its actions in Iraq, including the Oregon verdict.

“Based upon an erroneous legal and factual analysis of the terms of the indemnification agreement, (the Army Corps) has refused to indemnify (KBR) for the costs of defending against the various third-party lawsuits,” KBR attorneys wrote, “and has refused to participate or assume direct responsibility in defending (KBR) in the underlying tort litigations.”

KBR said in the suit that it had no insurance to cover its wartime work, and the government’s refusal to involve itself in lawsuits constitutes a breach of the indemnification agreement.

Please read the entire article here

November 28, 2012 Posted by | Civilian Contractors, Contractor Oversight, Follow the Money, Iraq, KBR, Toxic, Wartime Contracting | , , , , , , | Leave a comment

US sues contractors over troop trailers in Iraq

Associated Press at The Blaze  November 20, 2012

The U.S. government has filed a civil lawsuit accusing a Houston-based global construction company and its Kuwaiti subcontractor of submitting nearly $50 million in inflated claims to install live-in trailers for troops during the Iraq War.

The lawsuit names KBR Inc. and First Kuwaiti Trading Co., alleging they overcharged for truck, driver and crane costs, and misrepresented delays in providing around 2,250 trailers meant to replace tents used by soldiers earlier in the invasion.

In one instance, the contractors allegedly claimed they paid $23,000 to lease one crane per month when the actual price was about $8,000, according to the lawsuit, which was filed this week in U.S. District Court in Rock Island, Ill., and first appeared in federal court records Tuesday.

KBR, once the engineering and construction arm of Halliburton, has faced lawsuits before related to its work in Iraq. One of the most prominent involved a soldier electrocuted in his barracks shower at an Army base. That case was eventually dismissed.

In the case involving the trailers, Jim Lewis, the U.S. Attorney for the Central District of Illinois, said “KBR and First Kuwaiti did not provide an honest accounting.”

Stuart Delery, a U.S. deputy assistant attorney general, said in a Department of Justice statement regarding the lawsuit that contractors “are not permitted to profit at the expense of the taxpayers at home who are supporting our men and women in uniform.”

November 21, 2012 Posted by | Civilian Contractors, Contractor Corruption, Contractor Oversight, Follow the Money, Government Contractor, Halliburton, Iraq, KBR, Lawsuits | , , , , , , | 1 Comment

‘Unsatisfactory’ Mega-Contractor, DynCorp, Re-Ups on Another Big Military Deal

Spencer Ackerman at Wired’s Danger Room  November 2, 2012

Just days after an inspector general report revealed that a giant Pentagon contractor performed “unsatisfactory” work in Afghanistan, the U.S. Air Force awarded the firm another multimillion-dollar pot of cash.

Virginia’s DynCorp, which performs everything from private security to construction for the U.S. military, has re-upped with Air Force to help pilots learn basic flying skills on the T-6A/B Texan II aircraft, a training plane. The deal is only the latest between DynCorp and the Air Force on the Texan II: In June, the Air Force Materiel Command gave the company a deal worth nearly $55 million for training services. The latest one, announced late Thursday, is worth another $72.8 million, and lasts through October 2013.

But the Air Force’s lucrative vote of confidence in DynCorp comes not even a week after the Special Inspector General for Afghanistan Reconstruction blasted the company for performing “unsatisfactory” construction work at an Afghan Army base in Kunduz. The base was “at risk of structural failure” when the watchdogs initially inspected, but the Army Corps of Engineers chose to settle DynCorp’s contract, a move that awarded the company “$70.8 million on the construction contracts and releas[ed] it from any further liabilities and warranty obligation.” (.pdf)

A DynCorp spokeswoman, Ashley Burke, told Bloomberg News that the company disputed the special inspector general’s findings. For its part, the special inspector general took to tweeting photographs of what it called “DynCorp’s failed work at #Afghan #Army Base in #Kunduz.

Please read the entire post here

November 2, 2012 Posted by | Afghanistan, Civilian Contractors, Contract Awards, Contractor Oversight, Department of Defense, DynCorp, Follow the Money, Government Contractor, Private Military Contractors, SIGAR, Wartime Contracting | , , , , , , , | Leave a comment

The Ronco Riff

October 25, 2012

Voluntary Today, Involuntary Tomorrow

Another Successful Flush by Wackenhut G4S

Will the last Ronco Consulting Corporation Employee out please close the lid ?

October 25, 2012 Posted by | Afghanistan, ArmorGroup, Bomb Disposal, Civilian Contractors, Contractor Casualties, Contractor Oversight, Demining, ERW, Explosive Ordnance Disposal, Explosive Remnants of War, Follow the Money, Friendly Fire, G4S, Government Contractor, Iraq, Landmines, Lawsuits, Mine Clearance, Ronco, Ronco Consulting Corporation, State Department, Sudan, Taxes, United Nations, United Nations Board of Inquiry, Vetting Employees, Wackenhut | , , , , , , , , , , , , , , | 1 Comment

Iraq convoy was sent out despite threat

Unarmored trucks carrying needed supplies were ambushed, leaving six drivers dead. Records illuminate the fateful decision.

“Can anyone explain to me why we put civilians in the middle of known ambush sites?”

“Maybe we should put body bags on the packing list for our drivers.”

T Christian Miller The LA Times  September 3, 2007

Senior managers for defense contractor KBR overruled calls to halt supply operations in Iraq in the spring of 2004, ordering unarmored trucks into an active combat zone where six civilian drivers died in an ambush, according to newly available documents.

Company e-mails and other internal communications reveal that before KBR dispatched the convoy, a chorus of security advisors predicted an increase in roadside bombings and attacks on Iraq’s highways. They recommended suspension of convoys.

“[I] think we will get people injured or killed tomorrow,” warned KBR regional security chief George Seagle, citing “tons of intel.” But in an e-mail sent a day before the convoy was dispatched, he also acknowledged: “Big politics and contract issues involved.”

KBR was under intense pressure from the military to deliver on its multibillion-dollar contract to transport food, fuel and other vital supplies to U.S. soldiers. At Baghdad’s airport, a shortage of jet fuel threatened to ground some units.

After consulting with military commanders, KBR’s top managers decided to keep the convoys rolling. “If the [Army] pushes, then we push, too,” wrote an aide to Craig Peterson, KBR’s top official in Iraq.

The decision prompted a raging internal debate that is detailed in private KBR documents, some under court seal, that were reviewed by The Times.

One KBR management official threatened to resign when superiors ordered truckers to continue driving. “I cannot consciously sit back and allow unarmed civilians to get picked apart,” wrote Keith Richard, chief of the trucking operation.

Six American truck drivers and two U.S. soldiers were killed when the convoy rumbled into a five-mile gauntlet of weapons fire on April 9, 2004, making an emergency delivery of jet fuel to the airport. One soldier and a seventh trucker remain missing.

Recriminations began the same day.

“Can anyone explain to me why we put civilians in the middle of known ambush sites?” demanded one security advisor in an e-mail. “Maybe we should put body bags on the packing list for our drivers.”

Please read the entire story here

October 9, 2012 Posted by | Civilian Contractors, Contractor Casualties, Contractor Oversight, Contractors Missing, Defense Base Act, Department of Defense, Follow the Money, Halliburton, Iraq, KBR, Lawsuits, Politics, Private Military Contractors, Safety and Security Issues, Wartime Contracting | , , , , , , , , , , | Leave a comment

Will ArmorGroup, AGNA, G4S, finally be held accountable for the deaths of Paul McGuigan and Darren Hoare??

The programme-makers heard stories of contractors being forced to work on dangerous missions with inadequate equipment, incident reports sanitised to protect company reputations and numerous deaths of former soldiers.

One security contractor, Bob Shepherd, said: “We know when a soldier dies it’s all over the newspapers, it’s on the TV. But we never know when security contractors die.

“For the companies it’s bad for business, for the government it’s hiding the true cost of these conflicts.

“If the British taxpayers knew the total numbers of people that have died on behalf of British security companies in places like Iraq and Afghanistan they would be shocked.”

BBC News Oct 1, 2012

Security firm G4S was sent warnings not to employ an armed guard in Iraq just days before he murdered two colleagues, a BBC investigation has found.

Private security guard Paul McGuigan, from the Scottish Borders, was shot dead by Danny Fitzsimons in 2009 in Baghdad while on a protection contract.

Another man, Australian Darren Hoare, was also killed.

All were working for UK contractor G4S, which was operating under the name ArmorGroup in the region.

Violent criminal

In a BBC documentary, it is revealed that a G4S worker sent a series of emails to the company in London, warning them about Fitzsimons’s previous convictions and unstable behaviour.

The anonymous whistleblower signed one email “a concerned member of the public and father”.

The worker warned G4S: “I am alarmed that he will shortly be allowed to handle a weapon and be exposed to members of the public.

“I am speaking out because I feel that people should not be put at risk.”

Another email, sent as Fitzsimons was due to start work in Baghdad, said: “Having made you aware of the issues regarding the violent criminal Danny Fitzsimons, it has been noted that you have not taken my advice and still choose to employ him in a position of trust.

“I have told you that he remains a threat and you have done nothing.”

Within 36 hours of arriving in Iraq in August 2009, Fitzsimons – a former paratrooper – had shot and killed the two men after what he claimed was a drunken brawl.

Paul McGuigan Paul McGuigan was killed by Fitzsimons

An Iraqi colleague was also wounded as Fitzsimons tried to flee the scene.

Fitzsimons had worked as a private security contractor before in Iraq, but he had been sacked for punching a client.

At the time he was taken on by G4S, Fitzsimons also had a criminal record, was facing outstanding charges of assault and a firearms offence, and had been diagnosed by doctors as having PTSD (post-traumatic stress disorder).

In the documentary, the parents of Paul McGuigan call for the company to face criminal charges over the killing.

His mother Corinne Boyd-Russell, from Innerleithen in the Borders, said: “[Fitzsimons] fired the bullets. But the gun was put in his hand by G4S ArmorGroup. They put the gun in that man’s hand.

“I want G4S to be charged with corporate manslaughter and be held accountable for what they did.”

Corinne Boyd-Russell Corinne Boyd-Russell wants G4S charged with corporate manslaughter

The parents of Danny Fitzsimons, who is serving 20 years in a Baghdad prison after being sentenced for the murders in February 2011, were also shocked to hear about the existence of the emails.

Liz Fitzsimons, from Manchester, said: “And they still took him out there? They [G4S] need to be taken to task for that.

“The people who we feel are responsible, who we hold responsible for putting that gun in Danny’s hand, are without a shadow of a doubt G4S.”

A G4S spokesman admitted that its screening of Danny Fitzsimons “was not completed in line with the company’s procedures”.

It said vetting had been tightened since the incident.

Regarding the email warnings, the spokesman G4S told the BBC it was aware of the allegations but that an internal investigation showed “no such emails were received by any member of our HR department”.

He did not say whether anyone else in the company had seen them.

An inquest into the death of Paul McGuigan, a former Royal Marine, is due to begin in December.

The revelations in the Fitzsimons case come just weeks after G4S found itself at the centre of a crisis over its inability to meet its commitment to recruit security staff for the Olympics in London.

It is the biggest security company in the world in an industry that is worth about £400bn globally

WARNINGS ABOUT KILLER OF SCOT WENT UNHEEDED  October 1, 2012

Danny Fitzsimons was sentenced to at least 20 years in an Iraqi prison last year

CONTROVERSIAL security firm G4S ignored warnings not to employ an armed guard in Iraq who went on to murder two of his colleagues, it has been claimed.

Danny Fitzsimons was sentenced to at least 20 years in an Iraqi prison last year for killing Scot Paul McGuigan and Australian Darren Hoare in Baghdad in 2009.The parents of Paul McGuigan, 37, have now called for G4S ArmorGroup to face criminal charges for failing to heed the warnings and sending Fitzsimons to Iraq.Now a new BBC Scotland documentary has revealed that G4S was warned not to employ Fitzsimons, who was suffering from Post-Traumatic Stress Disorder, and had been fired by a previous security contractor for punching a client.

It emerged that a whistleblower sent two e-mails to the London-based company, which operates as Armorgroup in Iraq, expressing concerns that Fitzsimons’ unstable behaviour made him unsuitable to be handling weapons in a war zone.

The first e-mail, revealed in tonight’s BBC Scotland Investigates: Britain’s Private War programme, reads: “I am alarmed that he will shortly be allowed to handle a weapon and be exposed to members of the public. I am speaking out because I feel that people should not be put at risk.”And in a second e-mail, sent as 32-year-old Fitzsimons was about to start work in Baghdad, the whistleblower adds:“Having made you aware of the issues regarding the violent criminal Danny Fitzsimons, it has been noted that you have not taken my advice and still choose to employ him in a position of trust.

“I have told you that he remains a threat and you have done nothing.”Paul McGuigan’s mother, Corinne Boyd-Russell, from Innerleithen, in Peebleshire, said: “Fitzsimons fired the bullets. But the gun was put in his hand by G4S ArmorGroup.“I want G4S to be charged with corporate manslaughter and be held accountable for what they did.”

The parents of Fitzsimons were also shocked to hear about the existence of the e-mails.

Mother Liz Fitzsimons, from Manchester, said: “The people who we feel are responsible, who we hold responsible for putting that gun in Danny’s hand, are without a shadow of a doubt G4S.”

The news comes just months after the UK Government was forced to call in 1,200 troops to police the Olympic Games venues after G4S failed to provide enough staff.

The firm recently won a £20million contract to manage the electronic tagging of Scottish offenders.

A spokesman for G4S said: “Although there was evidence that Mr Fitzsimons falsified and apparently withheld material information during the recruitment process, his screening was not completed in line with the company’s procedures.

“Our screening processes should have been better implemented in this situation, but it is a matter of speculation what, if any, role this may have played in the incident.”

September 30, 2012 Posted by | ArmorGroup, Civilian Contractors, Contractor Casualties, Contractor Oversight, Defense Base Act, Follow the Money, G4S, Lawsuits, Legal Jurisdictions, Post Traumatic Stress Disorder, Private Security Contractor, Ronco, Ronco Consulting Corporation, Safety and Security Issues, Security Clearances, State Department, Vetting Employees, Wackenhut | , , , , , , , , , , , , , , , , , | Leave a comment

Will No One Rid Me of This Turbulent Company?

by David Isenberg at Huffington Post

also see at Davids Blog

Now that the London Olympics are receding into memory and the world has moved on to other pressing sports issues, like substitute NFL referees, the time is right to look back and ask one very important question; namely, just how badly did G4S screw up?

You remember G4S, don’t you? That is the British private security company that was unable to provide enough guards for the Summer Games and failed to disclose its problems in the buildup to the event. Its performance was so bad that the British got mad at Mitt Romney back in July when he, in one of his rare absolutely honest statements, indirectly mentioned its obvious lack of readiness.

As it turns out, the most charitable thing one can say is that G4 did badly, very badly. Others, such as British Members of Parliament would be much harsher. As evidence, consider the newly released report put out by the British Parliament’s Home Affairs Committee. In the conclusion the report states:

Reports commissioned by LOCOG [London Organising Committee of the Olympic and Paralympic Games] in the months preceding the Games indicated clearly that there were problems with G4S’s recruitment, training and communications. They also found that the management information presented to LOCOG by G4S were fundamentally unreliable. G4S, meanwhile, continued to insist that it was in a position to deliver its contract. Although Mr Buckles [G4 CEO] claims to have acted on all the relevant recommendations, the final outcome suggests that the changes to the data G4S were reporting to LOCOG were more presentational than substantial. The data were at best unreliable, if not downright misleading, and the most senior personnel in the company must take full responsibility for this.

To paraphrase what King Henry the Young said of Thomas Becket, Archbishop of Canterbury in the 12th century, will no one rid me of this turbulent company?

This, by the way, was not some unfortunate confluence of events that nobody could anticipate; a perfect storm, as it were. There were many warning signs. For example:

It seems that the penny finally dropped with G4S management on 3 July, when Mr Taylor-Smith [Chief Operating Officer of G4] telephoned Mr Buckles to inform him there would be a shortfall of staff. Mr Buckles was on holiday at the time, which suggests that this was something more than a routine call. But Mr Buckles did not mention the scale of the problem to the Home Secretary when he spoke to her on 6 July, the same day on which Mr Horseman-Sewell was boasting recklessly in the press that G4S would have been more than capable of simultaneously delivering multiple Olympic security projects around the world. Neither did Mr Buckles disclose the scale of the problem when he met the Home Secretary on 10 July. It is clear that by this stage the Home Office had realised that something might be seriously amiss, as Charles Farr [Director-General of the Office for Security and Counter-Terrorism at the Home Office and Chair of the Olympic Security Board] had already begun to put contingency plans into place. But it is astonishing that G4S took a further week to tell its partners how bad things were.

G4S’s debacle was far more than a black eye just for G4S. It set back the entire security industry in the United Kingdom.

Please read the entire post here

September 28, 2012 Posted by | Civilian Contractors, Contractor Oversight, Follow the Money, G4S, Private Security Contractor, Ronco, Ronco Consulting Corporation, Wackenhut | , , , , , | 1 Comment

Goldman Sachs downgrades G4S

StockMarketWire.com  September 27, 2012

Goldman Sachs downgrades G4S from sell to conviction sell, target price cut from 264p to 231p

September 27, 2012 Posted by | ArmorGroup, Contractor Corruption, Contractor Oversight, Follow the Money, G4S, Government Contractor, Ronco, Ronco Consulting Corporation, Wackenhut | , , , , , , | Leave a comment

Tierney and Cummings Seek Administration Help on Legislation to Save Taxpayers Billions on Defense Base Act Insurance

“IT”S TIME TO FIX THIS PROGRAM”

Washington, DC (Sept. 11, 2012)— September 17, 2012

Today, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform, and Rep. John F. Tierney, Ranking Member of the Subcommittee on National Security, Homeland Defense and Foreign Operations, sent a letter to the Office of Management and Budget requesting support for, and input on, H.R. 5891, The Defense Base Act Insurance Improvement Act of 2012.

“This is a common-sense bill that would save the American taxpayers billions of dollars,” said Tierney. “Numerous government audits have concluded that we are paying too much for workers’ compensation insurance for overseas government contractors, and that these workers aren’t getting what they deserve. It’s time to fix this program.”

The legislation would transition the existing Defense Base Act (DBA) insurance program to a government self-insurance program. According to a 2009 Pentagon study, this change could save as much as $250 million a year. The study found: “In the long run, the self-insurance alternative may have the greatest potential for minimizing DBA insurance costs, and it has several administrative and compliance advantages as well.”

“We are sponsoring this legislation because several audits of the current DBA program have documented enormous unnecessary costs incurred by taxpayers,” Cummings and Tierney wrote.

The existing system has been a boondoggle for private insurance companies, which have reaped enormous profits under the program. According to an Oversight Committee investigation, insurance companies providing DBA insurance in Iraq and Afghanistan have made enormous underwriting profits that are significantly higher than those of traditional workers’ compensation insurers.

The letter from Tierney and Cummings requests support for the legislation and notes that “OMB may be evaluating similar options.”

September 18, 2012 Posted by | Afghanistan, AIG and CNA, Civilian Contractors, Contractor Casualties, Contractors Kidnapped, Contractors Missing, Defense Base Act, Department of Defense, Follow the Money, Private Military Contractors, Private Security Contractor | , , , , , , , | Leave a comment

War Profiteer of the Month-G4S

30 Aug 2012 — javier at War Resistors International

G4S plc (formerly Group 4 Securicor) is a British multinational security services company headquartered in Crawley, United Kingdom. It is the world’s largest security company measured by revenues and has operations in around 125 countries. G4S was founded in 2004 by the merger of the UK-based Securicor plc with the Denmark-based Group 4 Falck.

In 2004 G4S bought private military and security company (PMSC) ArmorGroup and in doing so joined the shadowy world of privatised war. PMSCs have been accused of profiting from war, conflict, and political instability at the expense of security and human rights.

The British government has already played a large role in the growth of this industry by endorsing its widespread use in Iraq and Afghanistan. In the three years 2007-2009 the industry earned £62.8 million in contracts from the UK government. Almost all of the Foreign Office’s contracts have gone to ArmorGroup, now part of G4S. In June this year, defence secretary Philip Hammond, announced 30,000 Army jobs would go amid spending cuts, citing the need to use “more systematically the skills available in the reserve and from our contractors”.

Please read the history of G4S and more here

August 31, 2012 Posted by | ArmorGroup, Civilian Contractors, Contractor Corruption, Contractor Oversight, Follow the Money, G4S, Ronco, Wackenhut | , , , , , , | 2 Comments

Sisters of Bingley former soldier demand answers over Afghan disaster

The family has also been told that Global Security, the company he was working for at the time, had refused to pay out his life insurance

Telegraph and Argus  August 20, 2012

The family of a soldier turned bodyguard who was killed in a plane crash in Afghanistan more than two years ago is still battling for a full explanation as to what led to the disaster.

Rebecca Lake, said her family was being “kept in the dark” despite an on-going fight for justice for her brother Daniel Saville, 40, a former Coldstream guard, who was among three Britons who perished when Pamir Airways Flight 1102 crashed north of Kabul, Afghanistan, on May 17, 2010.

Mr Saville, who grew up in Wilsden , Haworth and Allerton , Bradford, had been only a few weeks away from his return to Britain from working as a private security contractor for a US government agency trying to combat the cultivation of heroin.

A damning official report blaming the failure of the aircraft’s captain and Afghan air traffic control for causing the disaster has been obtained from the Foreign Office by the Telegraph & Argus using the Freedom of Information Act.

But Mrs Lake, 45, of Clayton Heights , Bradford, has made a fresh plea to the authorities to keep her family fully informed of developments as lawyers continue a compensation battle in the US for the British victims of the doomed plane which had been flying on false documents.

She said that, despite investigations in the war-torn country, it had been “difficult” for the Afghan authorities to fully investigate and bring to justice those who were to blame for causing her brother’s death.

The family has also been told that Global Security, the company he was working for at the time, had refused to pay out his life insurance.

Mrs Lake said: “We really have no idea about what is going on. As far as we are concerned, everything is at a standstill.

“We really do not think that we are going to get any answers. There has been fault admitted somewhere, just not to us. We have not even had an apology or explanation.

Please read the entire article here

August 20, 2012 Posted by | Afghanistan, Civilian Contractors, Contractor Casualties, Defense Base Act, Follow the Money, Legal Jurisdictions, Private Security Contractor | , , , , , | Leave a comment

Marine Veteran KBR PTSD Casualty Wade Dill July 16, 2006

After many years of surviving an extremely abusive Overly Zealous Defense

Wade Dill’s  family was finally provided death benefits under the Defense Base Act

These benefits were recently taken away by the Benefits Review Board when Attorney Bruce Nicholson, who was actively pursuing a settlement with KBR/AIG’s Attorney Michael Thomas, had a contract with the widow, was the attorney of record with the BRB, did not as much as respond to the Appeal.

While Bruce Nicholson is the one who apparently purposely abandoned the claim, Michael Thomas and the BRB were more than happy to carry on without notifying the widow that AIG’s appeal of her claim was unopposed.

Our thoughts are with you today Barb

July 15, 2012 Posted by | AIG and CNA, Civilian Contractors, Contractor Casualties, Defense Base Act, Follow the Money, Halliburton, KBR, Post Traumatic Stress Disorder | , , , , , , , , , , , | Leave a comment

Cummings Introduces Legislation to Reform Defense Base Act Insurance Program

Crossposted from The Defense Base Act Compensation Blog

In addition to cost concerns, the current system has failed to ensure that all injured workers obtain health care services, disability payments, or death benefits they and their families deserve

‘There is absolutely no reason American taxpayers should be lining the pockets of private insurance companies,” said Cummings. “This bill would save billions of dollars while improving the ability of contractor employees who risk their lives in war zones to obtain the medical care and support they deserve.”

Committee on Government and Oversight Reform  June 6, 2012

Washington, DC (June 6, 2012) —Rep. Elijah E. Cummings, Ranking Member of the House Oversight and Government Reform Committee, introduced legislation today that would save taxpayers huge sums of money by transitioning the existing workers’ compensation insurance system for overseas government contractors away from private sector insurance companies to a federal self-insurance program.

“There is absolutely no reason American taxpayers should be lining the pockets of private insurance companies,” said Cummings. “This bill would save billions of dollars while improving the ability of contractor employees who risk their lives in war zones to obtain the medical care and support they deserve.”

According to a 2009 Pentagon study, Congress could save as much as $250 million a year by transitioning the existing Defense Base Act (DBA) insurance program to a government self-insurance program. The study found: “In the long run, the self-insurance alternative may have the greatest potential for minimizing DBA insurance costs, and it has several administrative and compliance advantages as well.”

Cummings’s legislation, H.R. 5891, The Defense Base Act Insurance Improvement Act of 2012, would direct the Departments of Defense and Labor to establish a self-insurance program in which the government would pay directly for medical benefits and disability benefits rather than utilizing private insurance companies.

The existing system has been a boondoggle for private insurance companies, who have reaped enormous profits under the program. According to an Oversight Committee investigation, insurance companies providing DBA insurance in Iraq and Afghanistan have made enormous underwriting profits that are significantly higher than those of traditional workers’ compensation insurers.

The current DBA system requires contractors to purchase workers’ compensation insurance for employees working overseas from private insurance carriers, and the contractors and insurance companies negotiate their own rates. Since the costs of the insurance premiums are often built into the price of the contract with the government, there is little incentive for contractors to limit insurance costs.

Cummings’s bill would set a six month deadline for the Departments of Defense and Labor to develop an implementation strategy to transition to a self-insurance program, and it would require the strategy to be executed within a year after the bill is enacted.

The legislation would also require the Departments of Defense and Labor to issue a report one year after the program is implemented to assess its effectiveness in terms of cost-savings and the delivery of benefits.

In addition to cost concerns, the current system has failed to ensure that all injured workers obtain health care services, disability payments, or death benefits they and their families deserve. An analysis by ProPublica found that private insurance companies had denied about 44% of serious injury claims and about 60% of claims by employees suffering psychological damage such as post-traumatic stress disorder.

At the request of Congressman Cummings, the Domestic Policy Subcommittee held a hearing in 2009 to evaluate these findings, which confirmed that the Defense Base Act is in desperate need of reform.

June 6, 2012 Posted by | Civilian Contractors, Contractor Casualties, Defense Base Act, Department of Defense, Follow the Money | , , , , , , , , , | Leave a comment

Federal contractors get 10 percent raise

“Excessive reimbursements are wrong and must stop,” Mack said. “We call on Congress to follow the lead of those members who have already recognized the importance of lowering the executive compensation cap so that taxpayers are no longer liable for these wasteful and unnecessary payments.”

Washington Post  Joe Davidson  The Federal Diary May 7, 2012

Uncle Sam isn’t as flush as he used to be, but he still has enough money to pay individual private contractors as much as $763,029.

That’s the federal cap on reimbursement to executives of private firms doing government work. The cap was raised in April, from $693,951, by the Office of Federal Procurement Policy

It’s worth pointing out that this 10 percent raise comes as federal employees are in the midst of a two-year freeze on basic pay rates.

But Obama administration officials had no choice in raising the cap. The compensation formula was set by law.

“In accordance with an outdated statute, the federal government was forced to raise the cap on agency reimbursements to contractors for the pay of senior executives who contract with the government,” said Moira Mack, an Office of Management and Budget spokeswoman. “With this latest congressionally mandated increase, taxpayers will be on the hook for contractor reimbursements far in excess of what is reasonable.”

A notice to federal agency heads, from Lesley A. Field, acting administrator of the Office of Federal Procurement Policy, said “this rate of growth in the cap . . . has far outpaced the rate of inflation, the rate of growth of private-sector salaries generally, and the rate of growth of Federal salaries — forcing our taxpayers to reimburse contractors for levels of executive compensation that cannot be justified for Federal contract work

Please see the original and read more here

May 7, 2012 Posted by | Civilian Contractors, Contractor Oversight, Follow the Money, Government Contractor | , , | Leave a comment

America’s Shame: The U.S. Government’s Human Trafficking Dilemma

Project on Government Oversight  May 7, 2012

For Vinnie Tuivaga, the offer was the answer to a prayer: A job in a luxury hotel in Dubai–the so-called Las Vegas of the Persian Gulf–making five times what she was earning as a hair stylist in her native Fiji.

She jumped at the chance, even if it meant paying an upfront commission to the recruiter.

You probably know how this story is going to end. There was no high-paying job, luxury location or easy work.

Tuivaga and other Fijians ended up in Iraq where they lived in shipping containers and existed in what amounted to indentured servitude.

Journalist Sarah Stillman told Tuivaga’s story and that of tens of thousands of other foreign workers in acute detail almost a year ago in her New Yorker piece, “The Invisible Army.”

In some cases, Stillman found more severe abuses and more squalid living conditions than what Tuivaga and her fellow Fijians experienced.

But like Tuivaga, thousands of foreign nationals in the U.S. government’s invisible army ended up in Iraq and Afghanistan war zones because they fell victim to human traffickers.

Let that sink in.

This human trafficking pipeline wasn’t benefitting some shadowy war lord or oppressive regime. No, these are workers who were feeding, cleaning up after, and providing logistical support for U.S. troops—the standard-bearers of the free and democratic world.

In its final report to Congress last year, the Commission on Wartime Contracting said it had uncovered evidence of human trafficking in Iraq and Afghanistan by labor brokers and subcontractors. Commissioner Dov Zakheim later told a Senate panel that the Commission had only scratched the surface of the problem. He called it the “tip of the iceberg.”

In essence, despite a 2002 presidential directive that set a “zero tolerance” on human trafficking, modern-day slavers have been operating with impunity under the aegis of the U.S. government.

Nick Schwellenbach, who until last month was the director of investigations at the Project On Government Oversight (POGO), and author David Isenberg also wrote about the conditions some of these foreign workers endured in Iraq.

Nick and David uncovered documents that showed how one U.S. contractor—in this case KBR—was well aware that one of its subcontractors, Najlaa International Catering Services, was involved in trafficking abuses.

Please see the original and read more here

May 7, 2012 Posted by | Afghanistan, Civilian Contractors, Contingency Contracting, Contractor Corruption, Contractor Oversight, Follow the Money, Halliburton, Human Trafficking, Iraq, KBR, Politics | , , , , , , , , , | 1 Comment

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