Archive for category Publications

Publications: Freedonia Report On Global Demand For Security Services

This publication is very expensive, but you can buy bits and pieces of it at your own choosing. I am not getting any kickbacks or anything from this group, and I am only putting this out there as information for the readership to check out.

To go along with my post on crowdfunding, the global demand for security is increasing, and the factors driving the demand are evident in this report.

Factors such as rapid gains in economic activity, rising personal incomes, foreign investment activity, and concern that public safety forces are overburdened, corrupt, or unable to provide sufficient protection will boost gains. Furthermore, increasing regulation and a trend toward greater professionalism in many of these local security service markets will improve public trust in security service businesses, thereby driving gains.

I have seen these trends and talked about them here on the blog. China is blowing up when it comes to security services. Africa will definitely need services, and thanks to the cartels in Mexico, security will continue to be in high demand.  The US continues to be the largest consumer of security services in the world, which is interesting. Also, the progression towards ISO certification for maritime PMSC’s–which will probably carry over to land based PMSC’s in the future, is a sign of this ‘professionalizing’ of the industry. Check it out. -Matt

 

Global demand for security services is driven by rising urbanization, the real and perceived risks of crime and terrorism, and a belief that public safety measures are insufficient.
World demand to 7.4% annually through 2016
Global demand for private contract security services will increase 7.4 percent annually to $244 billion in 2016. In general, demand for security services is driven by rising urbanization, the real and perceived risks of crime and terrorism, belief that public safety measures are insufficient, and growth of a middle class with assets to protect and the means to pay for supplementary security measures. The security service market will also be supported by an improved economic environment and building construction activity.
Developing areas to see strongest gains in demand

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Publications: RAND–Out Of The Shadows, A Survey On Contractor Health

Awhile back I was contacted by RAND to help promote this survey. I agreed because there was not enough information out there on the subject of contractor physical and mental health in these wars. So it is cool to see a final product and available for folks to check out.

The information provided is pretty revealing and I highly suggest reviewing the document if you are interested in either getting into this industry, or just learning about the actual health of this industry.

Now for some of the interesting tidbits that I found in the survey.

Only 16 percent of contractors sampled had ever made a DBA claim. Among those whose most recent contract had been funded by the U.S. government, 22 percent reported that they had made a DBA claim. The DBA mandates that all civilian employees working outside the United States on U.S. military bases or under a contract with the U.S. government for public works or national defense have access to workers’ compensation for injuries or deaths sustained as a result of such employment. We found that, among respondents who applied for benefits, 57 percent of claims were approved and 37 percent were either denied or still being processed at the time of the survey. (Six percent of respondents reported that they did not know the outcome of their DBA claim.) Contractors from the United States were more likely to file DBA claims than those from other countries. -page 20

Only 57 percent approved?  This is a horrible statistic, but not new. The survey mentioned the findings of T. Christian Miller’s report as well, which I posted several years back.

In a series of articles for ProPublica, T. Christian Miller reported on the types of physical and mental health problems affecting contractors, including loss of limbs,burns, loss of hearing or eyesight, various wounds (such as from shrapnel, gunshots, mortar attacks, or IEDs), PTSD, TBI, depression, suicidal ideation, and suicide. Despite the reported frequency and severity of these problems, Miller (2009a) found that between 2002 and 2007, “insurers had denied 44 percent of all serious injury claims” under the DBA and that they “also turned down 60 percent of contractors who claimed to suffer psychological damage, such as post-traumatic stress disorder.” He highlights systemic flaws in the DBA—along with a lack of regulation and enforcement by the U.S. Department of Labor and the monopoly of insurance company AIG—as contributors to the high rate of DBA claim denial.

 It just blows me away that ’60 percent of contractors’ with PTSD or some mental health issue, were turned down! And according to this recent survey, only 57 of these folks surveyed had that had DBA claims, had them approved. That has to change and contractors have sacrificed in this war. They deserve better than that, and it is shameful contractors are treated like this.

They also mentioned a company that specializes in providing mental health services. Back in 2008, I wrote a brief deal about Mission Critical Psychological Services and it is good to see they are still doing their thing.

Individual private companies have also developed programs to address the psychological challenges facing contractors, though there is limited publicly available information on how these programs are structured or the types of support they offer. For example, Mission Critical Psychological Services is a U.S.-based firm that provides psychological support services to firms in the contracting industry. Asked to estimate the number of contractors suffering from mental health issues, its CEO stated, “I think the numbers are in the thousands, maybe tens of thousands. Many are going undiagnosed. These guys are fighting demons, and they don’t know how to cope” (Risen, 2007). -page 45

I hope to see more companies pop up to meet the demand of contractor mental health, and especially after reports like this bringing attention to the matter. Or maybe, PMSC’s will be more focused on paying attention to this. Especially when they get their various certifications that show how compliant they are or when they are signatories to things like the ICoC. Check this quote out.

The extent to which the diverse array of contracting companies rely on private providers of psychological services tailored to the industry is unclear. However, recent U.S. and international codes and standards aimed at regulating the private security industry, in particular, clearly mandate that these firms establish policies that promote a safe and healthy working environment, including policies that address the psychological health of employees. One such requirement is embedded in the American National Standards Institute/ASIS International document Management System for Quality of Private Security Company Operations (known as the PSC.1 standard), which states, “The organization shall establish, implement, and maintain procedures to promote a safe and healthy working environment including reasonable precautions to protect people working on its behalf in high-risk or life threatening operations consistent with legal, regulatory, and contractual obligations.” One of the procedures specified is “medical and psychological health awareness training, care, and support” (American National Standards Institute and ASIS International, 2012,p. 24). The inclusion of such a requirement in the PSC.1 standard is significant, because compliance with the standard is now mandated in all DoD- and UK government-funded contracts. Moreover, the International Code of Conduct, a multi-stakeholder initiative aimed at industry self-regulation to which more than 600 private security companies are now signatories, includes a similar provision requiring that signatory companies adopt policies that support a safe and healthy working environment. This requirement specifically mentions a requirement for policies that address psychological health (“International Code of Conduct for Private Security Service Providers,” 2010,section 64d, p. 14). -page 45

Why is this important? Well for one, if you look at past incidents of contractors ‘snapping’ like with the Fitzsimmons case in Iraq, you can see why it is so important for companies to care about this stuff. Unfortunately, they do not care.

It is my experience as a contractor that none of the companies I have worked for, presented any kind of program that focused on the mental health of it’s contractors. I was never informed of any services and was just expected to deal with issues on my own.

Nor have I have ever worked with anyone in the past that has filed a DBA as a contractor for mental health issues–even though I know there are guys who should. Hell, this year alone, I am aware of two contractors that I worked with in the past that committed suicide recently–one of which was a friend. So I know there are mental issues out there, and yet the companies are not really getting involved with this stuff.

The report also mentioned the fact that many contractors are prior veterans and may have gotten their PTSD from service in the military, which I concur. So with that said, the VA should be highly responsive to the needs of these veterans. Should, is the key word, because you get an earful from guys on contract on how crappy the VA is when dealing with this stuff.  Several issues I have seen with contractors whom are veterans, are sleeping issues and TBI or traumatic brain injury. Or the use of pain killers to deal with past injuries. As for mental stuff, it is there, but guys usually don’t like going there.

On the positive side, contracts are a great way for veterans to come together again and share experiences. This is called armed group therapy. lol. Many contractors are attracted to this type of work, because it gets them back in the game of war, and gets them amongst a group that understands war. It is hard for guys to relate to others whom have not experienced that stuff, so that is what makes contracting a plus for veterans.

It is also interesting to note that if you watch AFN (Armed Forces Network) commercials overseas on TV, you are constantly bombarded by deals about suicide in the military or PTSD in the military. The services are constantly trying to reach out to Joes, and work the problem of suicide and PTSD. There are no commercials reaching out to contractors with similar health issues–even though there are more contractors in the war zones than there are military folks. There are no commercials at all geared towards contractors, which is interesting. With such health issues identified by RAND and others, some kind of effort to reach out to contractors could save lives.

Some other factoids that were of interest to me were the combat experiences and living conditions of contractors overseas. The one group of contractors that saw the most combat in this survey were the transportation security contractors or PSD/Convoy guys. The folks that go outside the wire and are exposed to the same dangers as the military, who all have to travel the same roads.

Training and advising contractors were the second most dangerous, which makes sense with all of the green on blue incidents involving contractors happening in places like Afghanistan. Also, by nationality in this survey, the US contractors saw more combat than any other nationality surveyed. Although I doubt this would be the case if Afghan or Iraqi contractors were more involved in this survey. lol

The living conditions of contractors were interesting as well. The worst living conditions experienced were the transportation guys. Living in transient tents all the time or sleeping in your truck can get old. You also work really long hours and the whole 12 hour shift concept seems to be used more and more by companies. Which really sucks, because this hinders sleep, thus making it difficult to keep sharp on the job. More companies neglect giving time off out in the field as well, and there is not enough emphasis on giving folks a break out there so they can recharge. Getting good sleep and not being overworked is crucial to security operations, and this is neglected all the time by the companies.

The best living conditions were experienced by the maritime security folks and logistics/maintenance folks.

Interesting report and check it out for yourself. Companies should take the time to read this and get a better feel for what is going on out there with their people, or try to work harder to meet the needs of their people. Thanks to RAND and authors, and to all of the contractors that participated in this survey. Hopefully this will get the conversation going on the true health of this industry, and how to meet the needs of contractors. -Matt

 

 

Read the report here.

Read the summary here.

This is a quick report done on AIG and the way they have treated DBA claims of contractors. Horrible treatment is all I have to say, and the statistics support that.

 

Contractors Who Worked in Conflict Zones Suffer High Rates of PTSD, Depression and Get Little Help
December 10, 2013
Private contractors who worked in Iraq, Afghanistan or other conflict environments over the past two years report suffering from post-traumatic stress disorder and depression more often than military personnel who served in recent conflicts, according to a new RAND Corporation study.
Researchers found that among the contractors studied, 25 percent met criteria for PTSD, 18 percent screened positive for depression and half reported alcohol misuse. Despite their troubles, relatively few get help either before or after deployment.
“Given the extensive use of contractors in conflict areas in recent years, these findings highlight a significant but often overlooked group of people struggling with the after-effects of working in a war zone,” said Molly Dunigan, co-author of the study and a political scientist with RAND, a nonprofit research organization.
The results are from an anonymous online survey of 660 people who had deployed on contract to a theater of conflict at least once between early 2011 and early 2013. The study attracted participants through several methods, including contacting individual companies and trade associations and posting links to the survey on websites and blogs. It is the first survey to examine a broad range of deployed contractors, not just those who provide security services.

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Publications: SIGAR Report–Concerns Remain About APPF’s Capabilities And Costs

Thus, the APPF acts as a monopoly service provider. Although contracted security costs for the majority of projects decreased, the average rate for armed local guard services increased as much as 47 percent for projects under the APPF. These costs could increase even more over time and implementing partners—left with no other options for local armed guard services—would have no choice but to pay the higher prices.

Pretty damning. Basically clients are using RMC’s as standard security providers, all because the APPF is so ineffective. That, and this ineffective force will have a monopoly soon, and will be able to charge whatever they want.

But here is the really bad part of this story. The loss of life because of this poor security force. Check out this quote:

Traders have informed the Wolesi Jirga about the onslaughts on the Kabul-Kandahar highway that have resulted in the death of 6 drivers and burning of 250 trucks with commercial goods over the past 6 months.
According to the Pajhwok Afghan News PAN), businessman Abdul Wali Wardak said their problems had increased after the responsibility of providing security for logistics vehicles was transferred to the Afghan Public Protection Force (APPF).
Afghanistan Chamber of Commerce and Industries Chief Mohammad Qurban Haqjo confirmed the losses and said the APPF has failed to provide the needed security for logistics vehicles and prevent the attacks caused by the insurgents.

Pathetic…. Read the report below if you want to check out SIGAR’s recommendations. -Matt

 

WHAT SIGAR FOUND
The effect of the transition to the Afghan Public Protection Force (APPF) has been minimal on projects in SIGAR’s sample, but only because implementing partners hired risk management companies (RMCs) to fill APPF capacity gaps and perform critical functions. Without RMCs, the APPF would be unable to provide the full range of security services needed by U.S. Agency for International Development (USAID) implementing partners. Contracts with implementing partners require the APPF to provide an appropriate number of capable and trained guards, as determined by the APPF in conjunction with the implementing partner, and a sufficient number of properly trained officers and non-commissioned officers to oversee the guards. However, for five projects that use APPF services, RMCs perform critical functions and fill gaps in APPF capabilities in recruiting, training, and supervision. Further, implementing partners reported that APPF officers and non-commissioned officers provided little benefit and were unable to perform required duties.

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Publications: Contractor Support Of USCENTCOM AOR, 3rd Quarter FY 2013

This is the latest DASD program support report. Here are the highlights from the report.

Afghanistan
In 3rd quarter FY13 there were approximately 101.8K DoD contractors in Afghanistan. The overall contractor footprint in Afghanistan decreased by 5.5% from 2nd quarter FY13.
The contractor to military ratio in Afghanistan is 1.43 to 1 (based on 71.5K military as of June 7, 2013).
There will be substantial contractor reductions over this fiscal year, as a result of base closures, the return to expeditionary standards, and transition of security to the APPF.
Local Nationals (LN) currently make up 36.7% of the DoD contracted workforce in Afghanistan. The use of LNs remains important to COIN strategy.

The big one in Afghanistan is that there are more contractors than military folks there. It’s a contractor’s war now and local nationals make up a huge portion of that work force.

Iraq
In 3rd quarter FY13, the total number of contractors supporting the U.S. Government in Iraq (DoD + DOS) was approximately 10.3K. There will be substantial contractor reductions in 2013 reflecting consolidation of sites, completion of ongoing activity, and increased utilization of host country service and labor.
The DoS and DoD continue to refine the requirements for contract support. Some contractor personnel employed under DoD contracts are supporting State Department and other civilian activities under the Chief of Mission, Iraq. These DoD contractors are provided on a reimbursable basis.

In Iraq, the name of the game is DoD and DoS working with one another and using each other’s resources in order to accomplish the mission. Which makes sense because the former military resource everyone depended upon is gone, so now it’s all about supporting one another with the limited resources that are there.

The other thing to factor into the contractor equation is all the turmoil going on throughout these regions. For Iraq, Syria is being closely watched and monitored. The current presence in Iraq is vital for that mission and contractors will be very much in need to secure that effort and supply the beans/bullets/bandages.

Not to mention that as Al Qaeda gets stronger in Syria, they will be taking that capability back into Iraq to clean house. The raids they are doing in Syria and becoming more complex and bold and they are using that knowledge and applying it in Iraq. As a result, Iraq is definitely seeing a pick up in violence and complex attacks. A great example is the recent prison assault at Abu Ghraib in which 500 Al Qaeda prisoners escaped as a result. But check out how they did it.

Monday’s attacks came exactly a year after the leader of al Qaeda’s Iraqi branch, Abu Bakr al-Baghdadi, launched a “Breaking the Walls” campaign that made freeing its imprisoned members a top priority, the group said in a statement.Sunni Islamist militants have in recent months been regaining momentum in their insurgency against Iraq’s Shi’ite-led government, which came to power after the U.S. invasion to oust Saddam Hussein.The group said it had deployed suicide attackers, rockets, and 12 car bombs, killing 120 Iraqi guards and SWAT forces in the attacks in Taji, north of Baghdad, and Abu Ghraib, the prison made notorious a decade ago by photographs showing abuse of prisoners by U.S. soldiers.Interior ministry and medical sources said 29 police and soldiers were killed, and 36 wounded.

 12 car bombs? That is quite the assault! (the Taliban were able to release 400 prisoners in the Sarposa prison escape.)DoS is concerned about the surge in violence as well. Here is a quote.

The attacks on the prisons at Abu Ghraib and Taji were carefully synchronized operations in which members of the Qaeda affiliate used mortars to pin down Iraqi forces, employed suicide bombers to punch holes in their defenses and then sent an assault force to free the inmates, Western experts said.

We are concerned about the increased tempo and sophistication of Al Qaeda operations in Iraq,” said a senior State Department official, who requested anonymity because he did not want to be seen as commenting on Iraq’s internal affairs.

The use of mortars is interesting and we saw this weapon used in the Benghazi attack. An effective mortar team can do a lot of damage very quickly if they are able to get in close and have the targeting data.

I wanted to bring these examples up in this post because it is relevant to contractor usage. With increased danger comes more dependence on solid security and defenses. If we want a presence in Iraq to monitor Syria or Iran or the internal developments in Iraq, then security contractors and support will be needed to continue that mission. Or we could pull out altogether….or send troops back in, and I don’t think neither of these options are of national interest.

For Afghanistan, the Taliban will continue to apply the pressure as more troops pull out. They will also do all they can to test the government and show how ineffective they are by making things more chaotic and dangerous. Much like what is going on in Iraq now. Contractors will be there to fill the vacuum left by these departing troops and they will have to deal with this increased danger. (contractor deaths are up to 3357 as of June)

Contractors will continue to train, continue to finish building projects, and continue as normal. We are essential to the massive logistics game of leaving Afghanistan as well. From breaking down camps or equipment deemed too costly to ship, or supporting those who are left, contractors will keep the machine running. -Matt

 

Contractor Support Of USCENTCOM AOR, 3rd Quarter FY 2013

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Publications: Stability Operations Magazine, January-February 2013

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Publications: IG Review Of Best Value Contracting For DoS Local Guard Programs

After reading the latest report on the Benghazi attack called Flashing Red: A Special Report On The Terrorist Attack At Benghazi, I came across another really cool report they referenced in regards to Best Value contracting. I thought it was pretty interesting and worthy of some attention here.

Here is the quote about it from the Benghazi report.

Though a few members of the February 17 Brigade and the Libya Shield militia assisted the Americans on the night of the attack, the security that these militias and the local police provided to U.S. personnel was woefully inadequate to the dangerous security environment in Benghazi.
The unarmed local contract guards also provided no meaningful resistance to the attackers. The Department of State’s Inspector General had previously found that concerns about local security guards were not limited to Libya. A February 2012 Department of State Inspector General (IG) report found that more than two-thirds of 86 diplomatic posts around the world surveyed reported problems with their local guard contractors. Of those posts that reported problems with their contractors, 37 percent said there was an insufficient number of local guards and 40 percent said there was insufficient training. The IG found that overseas diplomatic posts, particularly those in high-threat situations beyond Iraq, Afghanistan, and Pakistan urgently needed best-value contracting, which takes into account the past performance of contractors.
Recommendation: When it becomes clear that a host nation cannot adequately perform its functions under the Vienna Convention, the Department of State must provide additional security measures of its own, urgently attempt to upgrade the host nation security forces, or decide to close a U.S. Diplomatic facility and remove U.S. personnel until appropriate steps can be taken to provide adequate security. American personnel who serve us abroad must often work in high risk environments, but when they do, we must provide them with adequate security. That clearly was not the case in Benghazi on September 11, 2012.
Recommendation: The Department must conduct a review of its local guard programs and particularly the use of local guard contractors at high-risk posts who do not meet appropriate standards necessary for the protection of our personnel or facilities.

Did you read that highlight? Urgently needed Best Value contracting….. and this is the IG saying this. lol Myself and others have been promoting the concept for awhile now and at least the IG get’s it. It sounds like DoS is starting to see the light as well.

The one interesting point that was discussed is the 10 percent price preference rule and how local guard force companies were just partnering with US companies in order to qualify. Here is a quote:

U.S. companies or qualified joint ventures “shall be evaluated by reducing the bid by 10 percent.” Based on an examination of contract competition documents for 35 local guard contracts, OIG found that the 10 percent price preference given to qualifying U.S. companies had no effect on the outcome of the awards. OIG further determined that it is easy for foreign companies wishing to take advantage of the price preference to become eligible by simply forming a joint venture with a U.S. company, thus largely negating the purpose of the preference.

So private industry found a loophole and exploited it to win contracts. With that said, I agree with the IG’s take on the 10 percent rule, and that it needs to be changed in order for it to be effective. Here is their suggestion.

Review the need for a 10 percent price preference given to U.S. companies bidding on local guard contracts because the preference has not been demonstrated to be a factor in recent local guard competitions.

Check it out below and it will be located in my Scribd or here on the blog for future reference. -Matt

 

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