Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Pentagon to Withhold Lockheed Payments Over Tracking Flaws

Bloomberg Businessweek  Tony Capaccio  February 28, 2012

Lockheed Martin Corp., the No. 1 U.S. defense contractor, is the first company to have payments withheld under a new Pentagon rule intended to correct deficiencies with internal systems that track cost, schedules, accounting and purchases, according to the Defense Department.

The Pentagon will withhold about $1 million a month in billings from Lockheed’s aeronautics division until the unit fixes longstanding shortcomings with its cost and schedule tracking system, Shay Assad, the Pentagon’s director of pricing, said today in an interview.

The money will be paid once the deficiencies are fixed, he said. The Pentagon today informed Lockheed’s Fort Worth, Texas- based aircraft unit that the withholding will start in March with billings made under a new production contract of about $4 billion for as many as 30 F-35 fighters, Assad said. The funds held back will amount to 2 percent of billings instead of the maximum 5 percent, he said.

That’s because Lockheed was deemed to have submitted an adequate corrective action plan, which is now under review by the Pentagon’s Defense Contract Management Agency, Assad said. The agency manages the new rule for Pentagon contracts.

“This is a step that’s available to the customer under the terms of the contract,” Joe Stout, a spokesman for Bethesda, Maryland-based Lockheed, said in an e-mailed statement

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February 28, 2012 Posted by | Civilian Contractors, Contractor Oversight, Government Contractor | , , , , , , , | Leave a comment

Defense Contractor EOD Technology announces layoffs

Knoxville Biz  February 28, 2012

Lenoir City defense contractorEOD Technology said Tuesday it is laying off 48 headquarters employees.

In a news release, the company said it was restructuring its business model in response to federal budget cuts, especially those associated with its work in Iraq and Afghanistan.

The release said several government contracts to protect U.S. troops and manage explosive ordnance were expected to extend well into 2012, but have ended earlier than expected because of accelerated U.S. troop withdrawal plans. Following the layoffs, EODT will have 250 American employees and 3,000 foreign nationals. The company said employees who are laid off will be offered severance packages.

“Our employees are remarkable, highly skilled people who are part of protecting the lives of American troops and foreign nationals,” Matt Kaye, EODT’s CEO, said in the release. “As any organization that works with government understands, we recognize that the budget environment is always changing, sometimes unexpectedly. Unfortunately, we must take this action, as many companies have been forced to do, to remain competitive.”

The company said it is boosting its emphasis on land mine removal and disposal, and expanding its work with the oil and gas industry.

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February 28, 2012 Posted by | Civilian Contractors, EODT, Explosive Ordnance Disposal, Explosive Remnants of War, Government Contractor, Landmines, Mine Clearance, Private Military Contractors | , , , , | 1 Comment

Risk Safety, Have Govt Contract Fees Reduced

WASHINGTON Courthouse News  February 28, 2012

The Department of Defense may reduce or deny award fees to government contractors found to jeopardize the health or safety of government personnel, under an interim rule now adopted as final.

This rule also modifies the requirement that information on the final determination of award fee be entered into the Federal Awardee Performance and Integrity Information System.
Specifically, the DoD employee must

“Include in the evaluation criteria of any award-fee plan, a review of contractor and subcontractor actions that jeopardized the health or safety of government personnel, through gross negligence or reckless disregard for the safety of such personnel, as determined through-(1) Conviction in a criminal proceeding, or finding of fault and liability in a civil or administrative proceeding …; or (2) If a contractor or a subcontractor at any tier is not subject to the jurisdiction of the U.S. courts, a final determination of contractor or subcontractor fault resulting from a DoD investigation.”
Also: “In evaluating the contractor’s performance under a contract that includes the [reduction or denial clause], the contracting officer shall consider reducing or denying award fees for a period if contractor or subcontractor actions cause serious bodily injury or death of civilian or military government personnel during such period. The contracting officer’s evaluation also shall consider recovering all or part of award fees previously paid for such period.

February 28, 2012 Posted by | Civilian Contractors, Contractor Oversight, Government Contractor, Safety and Security Issues | , , , , , , , , | Leave a comment