Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Dubai Firm Overbilled Pentagon $900 for $7 Part, Bowen Says

Bloomberg at SF Gate      July 31, 2011

A U.S. contractor in Iraq overbilled the Pentagon by at least $4.4 million for spare parts and equipment, including $900 for an electronic control switch valued at $7.05, according to a new audit.

Based on the questionable costs identified in a $300 million contract with Dubai-based Anham LLC, the U.S. should review all its contracts with the company in Iraq and Afghanistan, which total about $3.9 billion, said Special Inspector General for Iraq Reconstruction Stuart Bowen.

“The audit found weak oversight in multiple areas that left the government vulnerable to improper overcharges,” Bowen wrote in the forward to his 30th quarterly report, released today. The contract in question was funded with a combination of money earmarked for Iraqi Security Forces and Army operations and maintenance funds.

Among the “egregious examples of overbilling” by Anham were $4,500 for a circuit breaker valued at $183.30, $3,000 for a $94.47 circuit breaker and $80 for a small segment of drain pipe valued at $1.41

Please read the entire article at SF Gate

July 31, 2011 Posted by | Contractor Corruption, Contractor Oversight, Iraq, SIGIR | , , , , | Leave a comment

Monitoring Responsibilities for Serious Incidents Involving Private Security Contractors Once U.S. Military Forces Leave Iraq Have Not Been Determined (SIGIR 11-019)

LETTER FOR SECRETARY OF STATE      July 29, 2011
                  U.S. AMBASSADOR TO IRAQ
                  SECRETARY OF DEFENSE
                  COMMANDER, U.S. CENTRAL COMMAND
                  COMMANDING GENERAL, U.S. FORCES–IRAQ

Monitoring Responsibilities for Serious Incidents Involving Private Security  Contractors Once U.S. Military Forces Leave Iraq Have Not Been Determined     (SIGIR 11-019)

In September 2007, Blackwater, Inc., a private security contractor (PSC) under contract with the
Department of State (DoS), was involved in an incident that resulted in the death of 17 Iraqi
civilians.  As a result of the incident and its repercussions, the Department of Defense (DoD) and
DoS took actions to improve their coordination and oversight of PSCs involved in serious
incidents.1   In April 2009, the Special Inspector General for Iraq Reconstruction (SIGIR)

reported on the DoD system for reporting, investigating, and remediating serious incidents
involving PSCs in Iraq.2      Because of the planned withdrawal of U.S. military forces from Iraq in

December 2011, SIGIR reviewed the U.S. government’s current and planned oversight of PSCs
in that country.  In April 2011, SIGIR reported on the relationship between the U.S. Army Corps
of Engineers’ Gulf Region District’s reconstruction activities and its security contract
requirements with Aegis Defense Services, Limited.3

SIGIR’s objectives for this report were to determine (1) changes in the serious incident reporting
and investigating system since SIGIR’s 2009 report, (2) plans for the system after U.S. military
forces leave Iraq, and (3) coordination of serious incidents with the Government of Iraq (GOI).
SIGIR also followed up on the status of recommendations in its April 2009 report.  SIGIR will
be issuing separate reports on the current status of those recommendations.

SIGIR performed this audit under the authority of Public Law 108-106, as amended, which also
incorporates the duties and responsibilities of inspectors general under the Inspector General Act
of 1978 and in furtherance of a mandate in Section 842 of the National Defense Authorization
Act for 2008, Public Law 110-181, pertaining to contracts for the performance of security and
reconstruction functions in Iraq.      SIGIR encountered significant constraints imposed by DoS’
Bureau of Diplomatic Security.  The Bureau was unresponsive to SIGIR’s requests for

1 According to DoD guidance a serious incident includes, but is not limited to, “any damage of equipment or injury

to persons, attacks, any weapons discharge, criminal acts, traffic accidents, incidents involving ISF [Iraqi Security
Forces] and any incident believed to have possible strategic or operational impact. Incidents where aggressive
personal behavior and share the road policies are violated shall be reported.”
2  Opportunities To Improve Processes for Reporting, Investigating, and Remediating Serious Incidents Involving

Private Security Contractors in Iraq, SIGIR 09-019, 4/30/2009.
3  Gulf Region District Is Adjusting Its Aegis Security Contract Requirements for Changes in Reconstruction

Activities in Iraq, SIGIR 11-015, 4/27/2011.

July 31, 2011 Posted by | Civilian Contractors, Contractor Oversight, Iraq, Legal Jurisdictions, Private Security Contractor, SIGIR | , , , , | Leave a comment

BP ‘has gained stranglehold over Iraq’ after oilfield deal is rewritten

New terms mean company will be paid even when production is disrupted, critics claim

The Guardian July 30, 2001

BP has been accused of taking a “stranglehold” on the Iraqi economy after the Baghdad government agreed to pay the British firm even when oil is not being produced by the Rumaila field, confidential documents reveal.

The original deal for operating Iraq‘s largest field – half as big as the entire North Sea – has been rewritten so that BP will be immediately compensated for civil disruption or government decisions to cut production.

This potentially could influence the policy decisions made by Iraq in relation to the Opec oil cartel, and is a major step away from the original terms of an auction deal signed in the summer of 2009, critics claim.

“Iraq’s oil auctions were portrayed as a model of transparency and a negotiating victory for the Iraqi government,” said Greg Muttitt, author of Fuel on the Fire: Oil and Politics in Occupied Iraq. “Now we see the reality was the opposite: a backroom deal that gave BP a stranglehold on the Iraqi economy, and even influence over the decisions of Opec.”

The concerns are shared by the Platform campaign group, which has obtained copies of the original and amended contracts and on Sunday will publish them on its website.

Please read the entire story here

July 31, 2011 Posted by | Civilian Contractors, Iraq, Politics | , , , , | Leave a comment