Archive for category Industry Talk

Industry Talk: Contractors Imprisoned In Iraq Planned An Escape, Suffered Under Care Of Guards

Jan 1

Posted by Matt in Fiji, Industry Talk, Iraq | 2 Comments

He said the detainment brought back the horrors of the late Saddam Hussein’s brutal and sadistic regime to Iraqi nationals who were part of his extraction team.
“The Iraqi members of my team were absolutely terrified, they had been through this during Saddam’s terror reign and with the death of the dictator they thought it was all over. The detainment and psychological torture brought back vivid memories for them,” Mr Fisher shared.

Well, here is part 2 of this whole thing and we are now starting to get a better picture of what happened to these guys. I am also disgusted with what Iraq did to these men. I see the words in these testimonies below like ‘psychological torture, filth, squalor, moments of terror, fearful, deplorable, lives threatened, food placed on the ground with flies, and they are supposed to be our ally.’  If Iraq’s intent was to bring back the days of what it was like under Saddam, then they did a great job.

As to the details, I guess they were working for Triple Canopy and it wasn’t just 3 contractors, but 7 contractors. The other 4 were local Iraqi security specialists. They were also on a mission to retrieve equipment for the US government during this draw down.

There was also another thing mentioned that perked me up.

Rep. Pete King (R-L.I.) said he learned from Melissa Antiohos that her husband was in an Iraqi jail.
“He received virtually no assistance at all from his own government,” said King. “Nobody from the American embassy out in Baghdad went to see him at all.”
The U.S. State Department declined to discuss the charges made by King.
Antiohos said what happened to him was “unfortunate, given our contribution to their nation.”
“They are supposed to be our ally,” he said.

It is hard for me to imagine that the US Embassy was not immediately working on the release of these folks? But if true, that is not cool at all. This contractor team had Americans in it, they were doing a job for the US government through a contract, and a matter like this should have been handled and fixed on day one. I mean we have plenty of diplomats and State folks in Iraq, complete with a massive security force and logistics.

Now in the second article below, that is when the whole ‘planning to escape’ thing came up. I imagine SERE training was kicking in with Alex (former Special Forces) and the others, and based on how long they were detained and their treatment, I am sure some escape planning was in order. Here is the quote below.

According to the 41-year-old (Mark Fisher), the Iraqi military played psychological games with them promising imminent release while pointing loaded automatic machine guns at them. “Their favourite words were ‘believe me’ and ‘you’re going home tomorrow’ but it didn’t happen for 18 days.
“After hearing these words for the first few days, we knew that our captors were playing games with us and that’s when we began plotting our escape,” he said.

Unbelievable. Well guys, pass this one around and get the word out. If Triple Canopy makes a statement, I will post that as well. -Matt

 

imageIndustry Talk: Contractors Imprisoned In Iraq Planned An Escape, Suffered Under Care Of Guards

Freed security contractor Alex Antiohos, left, is joined by U.S. Rep. Peter King during a news conference Friday.

Long Island contractor held in an Iraqi jail for three weeks speaks out about ‘deplorable’ conditions
Rep. Peter King said no U.S. embassy officials went to visit him
BY Matthew Lysiak & Corky Siemaszko
Friday, December 30 2011
For the Long Island contractor who was trapped in an Iraqi jail for three weeks, it was filth, squalor and uncertainty interrupted by “moments of terror.”
“I was definitely fearful at times,” a weary-looking Alex Antiohos said Friday. “But I was making a concerted effort to suppress my emotions and my feelings in order to ensure that everyone remained calm.”
Antiohos, 32, spoke out three days after he and two other Americans were released by their Iraqi captors.
“I’m thrilled, thrilled to be home,” said the 32-year-old former Green Beret. “I’m looking forward to spending time with my family and ringing in the new year.”
Antiohos, who lives in North Babylon, was working for a private security firm in Iraq. His ordeal began on Dec. 9, when he and two colleagues were detained by members of the Iraqi Defense Ministry while escorting a convoy.
They said the papers of Antiohos and the other Americans — Jonas March of Savannah, Ga., and Kevin Fisher of Fiji — were not in order.
For 24 hours, Antiohos said they were held at a checkpoint with 15 Iraqi nationals. He said he called his wife, Melissa, and fully expected to be released.
Then, suddenly, they were arrested.
“Very surprised,” a guarded Antiohos said when asked for his reaction. “One would expect that the Iraqis would be a little more friendly.”
The worst was yet to come.
The trio were taken to a “filthy” facility in Mahmudiyah, which is part of the infamous “Triangle of Death.”
“It was deplorable,” Antiohos said. “There was limited electricity, no heat. It’s difficult to describe. In general, your average American would consider it appalling.”
And the food was even worse.
“Food placed on the ground with flies,” he said. “No running water.”
The Iraqi guards mostly left the prisoners alone. But when a high-ranking officer appeared, they got “aggressive,” he said.
“There were lives threatened,” he said. “That kind of thing. We were treated fairly most of the time with moments of terror.”
As the days wore on, Antiohos said they wondered when the U.S. government would spring them. It was, he said, “very frustrating.”
Rep. Pete King (R-L.I.) said he learned from Melissa Antiohos that her husband was in an Iraqi jail.
“He received virtually no assistance at all from his own government,” said King. “Nobody from the American embassy out in Baghdad went to see him at all.”
The U.S. State Department declined to discuss the charges made by King.
Antiohos said what happened to him was “unfortunate, given our contribution to their nation.”
“They are supposed to be our ally,” he said.
Story here.

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Fiji man plotted escape from Iraqis
Felix Chaudhary
Monday, January 02, 2012
DURING his 18-day detainment and psychological torture at the hands of the Iraqi military, a Fiji man began planning his group’s escape.
Mark Fisher, a former Republic of Fiji Military Forces sergeant and an employee of United States security contractor Triple Canopy Incorporated and his fellow workers were held captive for 18 days while retrieving equipment left behind by the US Army pull out.

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Industry Talk: Afghanistan Seizes Millions Of Dollars Worth Of Armored Vehicles And Weapons From Private Security Firms

Dec 29

Posted by Matt in Afghanistan, Industry Talk | No Comments

Kimberley Motley, an American lawyer in Kabul who advises security firms, said company executives were taken aback by the crackdown. They had opened their books to the government as a good-faith gesture, she said, in hopes that they could remain involved in the security industry as risk-mitigation consultants under the APPF model.
“A lot of companies are being penalized for trying to transparently run their security companies,” Motley said. The bulk of the equipment being seized, she said, was imported during years when there were “limited laws that dictated how they should operate.”

This government in Afghanistan is something else. First they ask the companies to see their books, and the companies comply in good faith, and then the government says ‘hey, let’s seize their valuable equipment’ listed in that book. Not a thought or care about any prior arrangements or contracts that allowed those companies to have that stuff in the first place. No compensation for that equipment, and just out-right take it for their own use. Boy, that is the kind of thing that will attract investors and business…….pffft.

The other thing that gets me about this whole deal is that part of what makes the private industry so effective, is the ability of the principal to just fire a poor company. If one security firm does not perform, then the principal goes with the next best company. The only thing the government should be involved with, is making sure everyone plays nice and that they deal specifically with the bad ‘agents’ or companies that ruin it for everyone else. That is how the free market is supposed to work.

With this arrangement, none of these NGO’s or companies investing in Afghanistan will have that option to ‘fire’ their protective detail.  And because Afghanistan is so corrupt anyways, all of these companies and groups thoroughly expect to not only get a poor service, but to be extorted and ripped off in the process. They have no choice in the matter, and to be honest, I do not blame them for making the decision to not do business in Afghanistan under those circumstances.

Hell, this whole deal of the government seizing property from these private companies should be a loud message to all. “Come to Afghanistan and get ripped off.” lol That should be their motto, and plaster it all over their flag or something. -Matt

 

Afghanistan cracks down on contractors
By Ernesto Londoño
December 2011
Afghan officials have seized millions of dollars worth of armored vehicles and weapons from private security firms in recent weeks, a move that has exacerbated concerns about the government’s plan to replace the hired guns that protect convoys and installations with an unprepared state-run guard force.
The crackdown is being carried out even though the Afghan Public Protection Force failed to meet any of the six benchmarks that were set out for it when President Hamid Karzai formally announced a plan to ban private security firms by March 20. An assessment team led by the NATO military coalition, which is heavily involved in the creation of the Afghan force, concluded in the fall that the guard force is far from ready to take over.
Diplomats, development experts and company executives worry that the abolition of private security contractors within three months could endanger Afghans and foreigners supporting NATO and its allies, halt reconstruction projects and open new channels for corruption.

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Industry Talk: Civilians To Guard Marine Base In Afghanistan

Dec 28

Posted by Matt in Afghanistan, Industry Talk | 2 Comments

This is fantastic news. Check this out. In the solicitation below, they are going to use ‘Best Value Criteria’ for the selection of what company they will go with. So that means they will not be selecting companies by who is the ‘lowest priced and technically acceptable’, or what I call the lowest bidder. Outstanding news and this is exactly what I and others have been harping on for awhile now.

You don’t pick your doctor based on who is the ‘lowest priced, technically acceptable’ and it does not make sense to pick a security company like that either. In both cases, lives are at risk and at Camp Leatherneck, our Marines deserve better.

Now of course this also requires the government to do their due diligence and actually find a good company to do business with. And if they can implement key components into the contract to either keep that company in check, or have the means to get rid of them and go with a better partner, then they should exercise that option. They should also work hard and really understand the dynamics of the company and how they treat their people, once they are hiring and fielding folks. A company can talk a great game, but the proof is in the pudding. And the test is if the base security is sound and the services delivered are exactly what the contract stipulates.

The thing the government should also focus on is the happiness of the guards themselves. Are they getting paid what they were promised, is the company treating them fairly, are they paying their people on time, are they pleased with the living conditions, are they happy with their leadership, is the company giving them good weapons and kit, and is the company doing all they can to take care of their people. Because if you have a happy guard force, then they will work that much harder to keep their job and do well on that contract. Sure it is a war zone and there will be some discomfort with the assigned duties and the environment itself, but there are still a lot of areas that a company can control and do well at in order to keep their folks happy.

The government should also focus on the leadership out in the field and ask them if they are getting the support necessary from headquarters? You get some of these companies that could care less about their managers out in the field, and are horrible at supporting them when for example they are trying to discipline a contractor or get certain equipment that is vital to the mission. Like I said, headquarters should be purely focused on making sure their people on the ground in that war zone are happy and taken care of. If not, then that is when you get the high attrition rate or you have leaders and workers that slack off and could care less about doing a good job. You also have a hard time properly managing these contracts if you have folks that are constantly leaving because they hate working for the company.

The other thing about this contract that perked me up is that they will be fielding 166 guards, and those guards are all to be vetted with a secret security clearance and come from the US or Commonwealth nations. That is great, and that means you will not see a TWISS deal for this contract where Ugandans or similar contractors are guarding the facility.

This is the first such requirement recognized at a Marine Corps installation that requires a higher force-protection standard; therefore, this procurement will be restricted to the citizens of the United States, United Kingdom, Australia, New Zealand, or Canada (FVEY EXPAT). This procurement will contain Classified Information. Therefore, Offerors must also have a current facility clearance, have the appropriate business licenses to carry arms, and operate as a business in Afghanistan.

The other element of this contract that is interesting to me is the weapons. For this deal, contractors will be operating some serious firepower. Which is great, and that is the way it should be. It also explains why there is more of a focus on a ‘higher force-protection standard’.

Personnel will be expected to wear body armor, man security towers and be familiar with the M16A4 rifle, M4 carbine and M9 pistol, plus crew-served weapons such as the M240B heavy machine gun and M2 .50-caliber machine gun. A typical workweek will last up to 72 hours, military documents said.

I wouldn’t mind seeing some mortars or even a Carl Gustav or two thrown in there? Why not some Mk 19′s as well? I mean if you are going to give contractors M 240B’s and M2′s, then why not give them as many tools as necessary to get the job done? But if the Marines feel this appropriate for the base defense, or that maybe a military unit will be manning the bigger more lethal stuff, then that is fine.

Oh, and one more thing. I personally like the guard shift system of three shifts of eight hours. The 12 hour shift is too long and I question how sharp guards can actually be after doing 12 hour shifts for multiple months? Having worked both types of shifts, it is my opinion that the 8 hour shift is the optimum schedule for keeping a guard force happy and sharp. It also helps to have one day off a week, just so guards can disconnect from the job and just relax. It is little things like that, that will make all the difference in the world on these contracts. Either way, I am glad to see that someone is listening to reason when it comes to these contracts. -Matt

 

Civilians to guard Marine base in Afghanistan
By Dan Lamothe
Wednesday Dec 28, 2011
U.S. commanders want civilian contractors to provide military security at the Marine Corps’ largest base in Afghanistan as a planned withdrawal of U.S. forces from the war-torn country expands.
The contracted security personnel will guard Camp Leatherneck, the sprawling, 1,500-acre-plus installation that serves as the Corps’ main hub of operations in Helmand province and home to II Marine Expeditionary Force (Forward), commanded by Maj. Gen. John Toolan. To date, coalition forces have handled security at Leatherneck, but commanders have discussed using contractors for months in anticipation of a smaller Marine footprint, said Lt. Col. Riccoh Player, a Marine spokesman at Leatherneck.

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Legal News: Iraq Releases 3 Security Contractors That Have Been Detained Since December 9th

Dec 27

Posted by Matt in Industry Talk, Iraq, Legal News | No Comments

I have no clue what company these guys were working for, but stuff like this burns me up. The US has had plenty of time to plan for the withdrawal of troops from Iraq, and prepare the legal battlefield for security contractors and others. These folks must have legal protections or some kind of an agreement established with Iraq so that these contractors can perform the service they were hired to do.

The other thing that bothers me with this is that two of these contractors were Americans. Yet again, why isn’t the DoS fighting tooth and nail to get every reasonable protection and agreement they can with Iraq so that US citizens at the least are treated fairly and with dignity. I mean someone should be reminding Iraq about how much blood and treasure the US has expended in this whole thing. Or remind them that we did not take their oil and other treasures, like most armies would have done in the past. (yep, I went there….)

The partners of US contractors deserve to be treated fairly and with dignity as well. The Fijians have certainly lost contractors in this war doing extremely dangerous missions all over Iraq. Missions that helped support efforts to rebuild Iraq and helped to encourage peace and stability there. There are and will be other contractors from other parts of the world who are supporting the mission to rebuild post war Iraq, and to treat them with disrespect is not right.

Either way, I think most contractors in Iraq have the feeling that regardless of whatever laws or agreements that are passed or lack there of, Iraq will do whatever they want. So I expect to see more of this kind of thing over the next year or couple of years. And contractors will do in Iraq, like they normally do in all countries where there is no SOFA, or has a corrupt/weak legal system. They will accomplish the task as best they can, and take huge risks in the process. I am sure money will be thrown all over the place in order to buy off a police officer or ministry official, or free a contractor from detention, or whatever. That is how these things work…. -Matt

 

NY Rep. King: Iraq releases 3 security contractors
December 27, 2011
A U.S. congressman from New York says three security contractors, including two Americans, have been released by Iraqi Army forces after they were held for more than two weeks.
Republican Peter King announced the releases of the men Tuesday. He identifies them as an Army veteran from Long Island, a former National Guardsman from Savannah, Ga., and a man from Fiji. He says they were working for a security firm when Iraqi Ministry of Defense officials rejected paperwork prepared on their behalf by the Iraqi Ministry of Interior and held them Dec. 9.
The men weren’t charged with any crimes. King says they were released Tuesday after efforts by his office, the State Department, the U.S. embassy in Baghdad, the Defense Department and the White House.
Story here.

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Industry Talk: Comparing Today’s State-Owned Firms To The East India Company

Dec 26

Posted by Matt in History, India, Industry Talk | 1 Comment

The parallels between the East India Company and today’s state-owned firms are not exact, to be sure. The East India Company controlled a standing army of some 200,000 men, more than most European states. None of today’s state-owned companies has yet gone this far, though the China National Offshore Oil Corporation (CNOOC) has employed former People’s Liberation Army troops to protect oil wells in Sudan. The British government did not own shares in the Company (though prominent courtiers and politicians certainly did). Today’s state-capitalist governments hold huge blocks of shares in their favorite companies.

I really liked this article because of it’s comparisons to today’s state-owned companies. Especially Chinese state-owned companies and their use of armed security. Now the big question is, will we see a day in which a modern state-owned company would have a standing army as large as the East India Company army? Who knows, but that is something I do like to track on this blog.

The Russians have also expanded the lethality of one of it’s state-owned companies. Back in 2007, Russia signed into law allowing Gazprom and Transneft to arm their security force for the protection of pipelines and facilities. Gazprom is a huge company and they are the largest natural gas extractor in the world, and the largest company in Russia.

Now what I always pondered with this stuff is the clash between state-owned companies and private-owned companies. Or state -owned companies and their private security or private military, clashing with other military forces or PMC’s. Especially on the high seas.

There was a recent threat warning where the Iranian navy might target merchant vessels in the Straits of Hormuz. In this situation, if there was an armed private force on a merchant vessel that was contracted by a ‘state-owned’ company, then that could be a situation where private force would combat a government force to protect company assets and personnel. The potential is there.

I guess my point is that back in the day, the East India Company had to protect it’s vessels from attacks by states and non-state actors all the time. They also raised an army on land to protect company assets as well, and this article identified the trend of these state owned companies and their private military or security as only getting bigger and more lethal in order to deal with expansion and control. A 200,000 man standing army, all under the control of a company is pretty impressive if you ask me.

The other thing I was interested in with this article was the mention of the bond as a means of dealing with the principal agent problem. Here is the quote:

The Company’s success in preserving its animal spirits owed more to necessity than to cunning. In a world in which letters could take two years to travel to and fro and in which the minions knew infinitely more about what was going on than did their masters, efforts at micromanagement were largely futile.
The Company improvised a version of what Tom Peters, a management guru, has dubbed “tight-loose management”. It forced its employees to post a large bond in case they went off the rails, and bombarded them with detailed instructions about things like the precise stiffness of packaging. But it also leavened control with freedom. Employees were allowed not only to choose how to fulfil their orders, but also to trade on their own account. This ensured that the Company was not one but two organisations: a hierarchy with its centre of gravity in London and a franchise of independent entrepreneurs with innumerable centres of gravity scattered across the east. Many Company men did extremely well out of this “tight-loose” arrangement, turning themselves into nabobs, as the new rich of the era were called, and scattering McMansions across rural England.

In modern times, we have the luxury of phones, cameras, the internet, jet aircraft, cars, overnight shipping, you name it. We have all of these tools at our disposal for the war effort, and yet we continue to have problems where a subcontractor on continent A, screws up something, and the head shed on continent B hasn’t a clue on what is going on. Or head quarters believes that things are getting taken care of, just because of emails and video conferencing–but they aren’t.

One of the solutions the East India Company came up with in their world that lacked the technologies of connectedness that we take for granted today, is the simple bond. That, and this ‘tight loose management’ concept that gave their company men ‘rules and guidelines’, but also the freedom necessary to make things happen throughout the world. And a man’s word was backed up by a bond, in which if they violated, they would literally pay for their mistake or violations.

It is such a simple little thing, and yet I am still perplexed as to why it is not used more in today’s contingency contracting? The East India Company depended on it, Renaissance period mercenaries and the towns that hired them in Italy depended upon it, and our Continental Congress and early Privateers all used the bond as a means of keeping everyone honest and on task. Perhaps problems with today’s contracting could have been minimized if we implemented a license and bonded concept for those contracts?

Cool article and check it out. -Matt

 

EastIndiamanIndustry Talk: Comparing Todays State Owned Firms To The East India Company

An armed East Indiaman vessel.

 

The East India Company
The Company that ruled the waves
As state-backed firms once again become forces in global business, we ask what they can learn from the greatest of them all
Dec 17th 2011
A POPULAR parlour game among historians is debating when the modern world began. Was it when Johannes Gutenberg invented the printing press, in 1440? Or when Christopher Columbus discovered America, in 1492? Or when Martin Luther published his 95 theses, in 1517? All popular choices. But there is a strong case to be made for a less conventional answer: the modern world began on a freezing New Year’s Eve, in 1600, when Elizabeth I granted a company of 218 merchants a monopoly of trade to the east of the Cape of Good Hope.
The East India Company foreshadowed the modern world in all sorts of striking ways. It was one of the first companies to offer limited liability to its shareholders. It laid the foundations of the British empire. It spawned Company Man. And—particularly relevant at the moment—it was the first state-backed company to make its mark on the world.

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Industry Talk: Siemens Government Technologies Appoints General Stanley McChrystal To Chair Board Of Directors

Dec 21

Posted by Matt in Industry Talk, Technology | No Comments

Congratulations to Siemens Government Technologies and to General McChrystal. Boy, this last year we have seen a lot of outstanding leaders move on to the private sector and that is great news.

As for this deal, I am not sure what SGT will be focusing in on specifically. Perhaps a representative can come up and fill in a few of those blanks? I noticed on the website that they will be partnering with Boeing for DoD Energy Modernization and I am sure that includes a whole range of technologies to get us more efficient and self reliant. In the video, it talks about energy security and the costs to DoD, and those are very important to the operational capability of today’s military. -Matt

 

Industry Talk: Siemens Government Technologies Appoints General Stanley McChrystal To Chair Board Of Directors

Siemens Government Technologies, Inc. Appoints General Stanley McChrystal to Chair Board of Directors
Dec. 19, 2011
Siemens Government Technologies, Inc., the newly developed Federal business arm of Siemens in the U.S., has appointed three external board members to strengthen business activities as Siemens builds its presence in the Federal market. General Stanley McChrystal, former Commander of the U.S. and International Security Assistances Forces Afghanistan, will serve as Chairman of the Board. He will be joined by former U.S. Army Lieutenant General John Sylvester and retired Lockheed Martin and General Electric executive Robert Coutts who will serve as board members.
“Our newly appointed board members bring a wealth of experience in identifying the challenges of the Federal marketplace and knowing how to meet these needs,” said Judy Marks, President and CEO of Siemens Government Technologies, Inc. “Siemens has the capabilities to provide solutions to reduce energy consumption, increase efficiencies, offer sophisticated medical services for our nation’s warfighters and achieve infrastructure improvements as a key strategic partner for the Federal government.”

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Finance: Taxes For Contractors 2011, By Luke Fairfield CPA

Dec 21

Posted by Matt in Finance, Industry Talk | 1 Comment

These newsletters come out about this time every year and they are a wealth of information. Probably the big one here is Luke’s suggestion of setting up a S Corp. Especially with the increased scrutiny by the IRS on those who have been claiming the foreign income exclusion.

Check it out below and definitely email him and his team if you have questions or are looking for a CPA. As you can see, he is a busy guy and Luke has partnered with another CPA to keep up. I also put his newsletter in the blue bar up top under Taxes For Contractors if you need to find it again. -Matt

 

Greetings!

For all you ex-teams, ex-pats, ex special forces, security contractors and operators out there I hope this letter finds you well.  In an attempt to keep you current with your tax filings I am sending out this letter as a year end reminder that 2011 is almost over.  There are some important new tax law changes this year such as the foreign tax being withheld in Afghanistan and increased IRS scrutiny of the foreign income exclusion and on Schedule C filers which I will address below.  Feel free to pass this email on to anyone in your situation who could use the help or anyone that I missed on this email. As always, I will do my best to minimize your tax bill and provide relevant advice for your situation.

Important Updates for 2011:
1) Audits on the foreign income exclusion have greatly increased. Those of you filing a Schedule C as an IC seem to be of particular interest.  This is due to the IRS opening a new office specifically dealing with this type of tax return.  In a typical audit, you are asked to provide some or all of the following:
a. A letter from your employer stating your work location and job duties for the year.
b. Letter of Authorization from the DOD stating your qualification to work overseas.
c. Copy of your passport to include any visa stamps.
d. A schedule of days outside the US for the period in question.
e. A copy of receipts for expenses claimed as deductions.
f. A copy of your work contract.
g. If claiming bona fide residency, they want to know where you lived, for how long and if it was your intention to remain overseas for a certain period.
2) Based on these audits, I strongly recommend starting an S Corporation for anyone who is an IC getting a 1099.  This appears to greatly reduce audit risk.  Additionally, if you do not think you could provide the above information or prove your qualification think twice about claiming it as you will most likely incur a 10 – 20% penalty on the additional tax due.

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Industry Talk: The UN Is Looking For A Few Good Security Firms In Libya

Dec 16

Posted by Matt in Industry Talk, Libya | No Comments

Here you go folks. If you have an office in Libya, or are thinking of setting up shop in Libya, definitely give UNSMIL a call when there. They reached out to me in an email which I posted below, and are in the market for some ‘good professional companies that can provide the mission in Libya with security services’.

As to the type of missions, who knows?

I also posted a quick story below on a few of the security companies already in Libya. The cool thing with this story is that it sounds like the new government has changed it’s mind about foreign security. Here is the quote:

Since Libya’s new leaders have yet to succeed in creating a national army to protect the oilfields, Western security companies will have to fill the gap.
The oilmen are paying top dollar for security so they can repair damaged fields and get oil production going again.
Several weeks ago, London’s HIS security consultancy was reporting that the NTC was unwilling to allow private security firms into the country. This, it said, “is acting as a brake on the country’s resurgent oil production.” That, however, appears to have changed as security slumped.

You are probably wondering why the NTC is changing their mind? Well now that Ghaddafi is out, a few of the tribes throughout Libya are fighting with the NTC over who controls what. So the NTC is not able to get everyone under the same tent for the sake of the country and their security forces are over extended trying to deal with it all. And oil production is directly impacted by that instability, which is not good for rebuilding.

Bottom line, western companies want and demand security for their technicians and executives, and the NTC is now allowing them to contract with security companies to keep the oil flowing. That oil is what will help rebuild the country, and private security is a big part of that process. Or until the NTC can get a handle on the security of the country.  It looks like private security will also be a big part of the UN’s mission in Libya as well. -Matt

 

Dear Sir,
Thanks for your response below.
However, please note the United Nations in UNSMIL based in Tripoli and a branch in Benghazi is looking for good professional Companies that can provide the mission in Libya with a security services.
If your Company has a branch in Libya and you are is interested, kindly advice in order to provide you with a vendor registration form to register your company for bidding exercise.
Thanks; regards.
Anne Marie Hougaz-Laferla
Procurement Officer
UNSMIL – Libya
Tel.: 218-91-222-0094
E-mail: hougaz@un.org

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Security firms hustle in lawless Libya
Dec. 9, 2011
As rival militias in postwar Libya wage turf wars in Tripoli and the interim government struggles to form a national army, Western mercenaries are moving in to fill the security vacuum in the oil-rich North African state.
Under the circumstances, it’s not surprising that the executive bureau of the National Transitional Council, striving to govern a country wracked by gunfire and political feuding, is giving these companies the time of day.
Western oil companies and other business groups hustling to get a piece of Libya’s oil and natural gas wealth want protection before they start investing large amounts of money in the new Libya following the defeat and ignominious death of leader Moammar Gadhafi in an eight-month civil war.
“Compared to former Finance Minister Ali Tarhouni’s rather hostile attitude, Libya’s new leadership is showing greater openness toward foreign private security companies,” observed the Intelligence Online newsletter, which has headquarters in Paris.

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Industry Talk: US Military Steps In To Man Gates In South Korea As G4S Struggles To Fill Slots

Dec 16

Posted by Matt in Industry Talk, South Korea | 1 Comment

U.S. officials said Joeun Systems was paid a total of about $118 million over the past five years for its services, but G4S was the lowest acceptable bidder for the next five-year contract at a price of about $109 million.
As G4S took over gate security at most U.S. military bases in South Korea at the beginning of this month, only 60 of the 850 guards who worked for Joeun Systems had agreed to sign on with the new contractor, according to officials with the guards’ union.
On Thursday, G4S said it has hired about one-third of the 600-plus guards it will need to secure all the posts. Many of those hired are former Joeun Systems employees, G4S officials say.

Here is an interesting little story from South Korea. We have a case here where the US military rebid the contract for base security, and G4S beat out the incumbent firm named Joeun Systems Corp. From the sounds of it, it looks like this contract was another Lowest Priced, Technically Acceptable contract mechanism victim. Meaning G4S was the lowest bidder, and paying the price for being the lowest bidder. The US military is also paying the price now for going cheap.

Joen Systems Corp. of course is protesting, and all of the guards that worked for them are union and are not willing to move over to G4S to take a lower salary. Which is totally understandable.

The interesting thing here is that our military bases there are using local security folks. Which is fine, but if the US military cares to have quality folks protecting these camps, then pay the extra amount and contract with American companies to do this work. Or use the Best Value mechanism of contracting, and not necessarily go with the lowest bidder for these things. Because if you are going to use local companies or local workers, then you will more than likely be dealing with that host nation’s unions. Or folks will organize naturally to protect their salaries if they do not have a union.  We saw the same thing happen in Iraq with the TWISS contracts. LPTA is a crappy way to go, and has all sorts of problems associated with it.

Also, because they are local, they will also have more impact in the local media stations and get more sympathy from their fellow citizens.  Either way, dealing with unions and contract disputes will always be an issue when trying to modify contracts and pay less for the same services. All I have to say is that paying the industry standard is the safe way to go, because you definitely do not want disgruntled guards tasked with force protection. Especially with the threat of North Korea, or any number of other threats that are unique to overseas posts. -Matt

 

GIs still manning gates in S. Korea as contractor struggles to fill slots
By JON RABIROFF AND ASHLEY ROWLAND
December 15, 2011
U.S. soldiers continue to man the gates at U.S. military bases in South Korea more than two weeks after a new security firm failed to hire enough employees to get the job done.
Despite the fact that the firm, G4S, continues to be short-staffed and in violation of its contract, U.S. military officials say they are willing to give the company more time to get up to speed.
Both sides insist the situation will soon be resolved, that security at the bases has not been compromised and disruptions have been kept to a minimum.

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Industry Talk: Xe Services Announces Name Change To ACADEMI

Dec 12

Posted by Matt in Industry Talk, Iraq | No Comments

Plato’s Akademia, established in the third century B.C., was an institution that produced the best thinkers and warriors alike. These were elite individuals capable of facing the challenges of the time thanks to a strong foundation in training, strategy and strength, both mental and physical.

Interesting news. I am wondering if this will help things at all for future contracts?  In interviews, CEO Ted Wright said they plan on pursuing contracts in Iraq again, and that would be quite the thing.  Here is a quote from CNN’s interview with him:

“The day I’m allowed to do business in Iraq will be success,” said Wright. “If the government of Iraq let’s us do business there again, you know we’ve been successful.”

As to the new business focus of ACADEMI, here was a little hint as to what they are thinking:

Wright would like to double the training side of the business. His company boasts one of the country’s largest, most well-equipped training facilities, located in Moyock, in sparsely populated northeastern North Carolina. He’s also exploring new business opportunities when it comes to certifying bodyguards for high net-worth individuals, such as celebrities or executives. He’d also like to expand the company’s number of commercial clients such as oil and gas companies, and insurers who do business in dangerous parts of the world.

“Hopefully we can reduce insurance rates for their clients so that they can bring us on as an offering to say, ‘Hey listen, go use these people, they’re gonna come and do an assessment for you and they’re gonna improve your security environment and your insurance rates will go down,” said Wright.

Now that is cool. Maybe they might get into the maritime security game again?  That industry needs quality folks and those shipping companies would benefit greatly from reduced insurance rates based on using the services of a company like ACADEMI. Even if they do not get into that game, the energy sector is still a massive market. Things are also getting more dangerous and unstable, and the world is highly dependent on the free flow of oil. Security is a crucial element of the free flow. -Matt

 

ACADEMI Hi res LogoIndustry Talk: Xe Services Announces Name Change To ACADEMI

 

Leading Training and Security Services Provider Xe Services Announces Name Change to ACADEMI
New name draws on company legacy while building on new leadership, governance and strategy.
Dec 12, 2011
USTC Holdings, LLC, the investor consortium that acquired Xe Services, LLC, including its main holding U.S. Training Center, Inc. in December 2010, today announced ACADEMI as the new name and brand for Xe Services. The name ACADEMI (pronounced “academy”) was selected to better communicate the new company’s focus on future growth.
“We have had a year of extraordinary changes that have resulted in a new, better company,” President and CEO Ted Wright said in a statement. The ACADEMI name communicates both our legacy and where we are going as a company in the future. This is more than a simple name change,” Wright continued. “Rather it is a reflection of the changes we have made while retaining those elements that made us who we are today — the best in our industry.”
The announcement of ACADEMI is the culmination of a year of change as part of the company’s new chapter of growth. Upon acquiring Xe Services and its core operating subsidiaries in December 2010, USTC Holdings, LLC indicated that it would form a new Board of Directors, including independent unaffiliated directors, to manage the company and enhance its governance and oversight capabilities.

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