Feral Jundi

Saturday, June 19, 2010

Industry Talk: U.S. Training Center Wins $120 Million Afghan Contract

     Yep. They won it alright, and if anyone at all doubts how desperate the US government is for manpower in this war, this is proof positive. The only reason why a company like this, wins this kind of contract, is because they can deliver.

     Obviously Xe is disliked by the government, but the government dislikes dead federal employees or losing the war even more.  Plus time is not on their side.  The administration has to show success in Afghanistan, and part of that strategy involves the civilian surge.(along with this military surge) Xe and the rest of my community are essential for that civilian surge to happen.  The war strategists know this, DoS and DoD knows this, and that is just the way it is.

     While big military is out killing the Taliban and doing the heavy lifting, who do you think will be doing the convoy, static and PSD work for all of these civilians?  The Afghan companies? (wait, we are investigating them for their dealings with the Taliban-yikes)  We could initiate the draft? (Oh, now that is even more politically unacceptable–election killer) We could use the National Guard and IRR? (wait, we are using them for the border or gulf spill clean up) Congress could vote for more troops to be sent to Afghanistan? (that would make the venture even more of a re-election killer for a congress and administration already on the ropes) We could put the call out to more countries to send troops? (wait, no one can afford to send any more–something about a world wide recession) How about some Ugandans? (already using them in Iraq) Any others?…. We could contract with DynCorp or Triple Canopy instead of Xe for this job? (we will and are already using them for this work, and DoS has already made their choice as to who is more capable at this time and for this contract/location–best value)

     I guess my point is, is that using security contractors and companies like Xe is essential to the war effort at this time. That is the best way I can spell it out for the reader. How are we not, if the DoS is willing to bite it’s lip and contract with this company? How is it not if we are now in the quarter million range as far as contractor numbers in both Iraq and Afghanistan?  How are we not after close to 2,000 dead and well over 40,000 injured?

     For the protection of federal employees and property in places like Iraq and Afghanistan, the best forces available right now, are the ones the companies have to offer. That is this war, and that is the politics of this event. –Matt

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Firm once known as Blackwater gets Afghan contract

June 19, 2010

KABUL, Afghanistan — Part of the company once known as Blackwater Worldwide has been awarded a more than $120 million contract to protect new U.S. consulates in the Afghan cities of Herat and Mazar-e-Sharif, the U.S. Embassy said Saturday.

The United States Training Center, a business unit of the former Blackwater, now called Xe Services, was awarded the contract Friday, embassy spokeswoman Caitlin Hayden said.

The company won the contract over two other American firms — Triple Canopy and DynCorps International, she said. The one-year contract can be extended twice for three months each for a maximum of 18 months.

Under the name Blackwater, the Moyock, North Carolina-based company provided guards and services to the U.S. government in Iraq, Afghanistan and elsewhere but came under sharp criticism for its heavy-handed tactics in those missions.

(more…)

War Art: ‘That Guy’, From LMS Defense-The Comics

That Guy

That Guy’ by LMS Defense- The Comics.  Artwork by Righteous Duke.

Friday, June 18, 2010

Industry Talk: CSPAN–War Time Contracts And Private Security Firms

Afghanistan: The War Between State Capitalism And Free Markets

     But executives with international mining firms said in interviews that while they believed that Afghanistan’s mineral deposits held great potential, their businesses were not planning to move into the country until the war was over and the country more stable.

     “There are huge deposits there,” said David Beatty, chief executive of Rio-Novo Gold, a mining company based in Toronto. “But as chief executive, would I send a team to Kandahar? And then call a guy’s wife after he gets shot? No.”

*****

     I was reading an excellent book the other day called “The End of the Free Market: Who Wins the War Between States and Corporations” by Ian Bremmer, and it was quite the read.  Basically, if you track the actions of countries like China in places like Iraq, Africa or Afghanistan, you start to get the idea that something is going on here. That state owned companies have the advantage over private industry in these war ravaged and resource rich countries. That reality is what worries me, and in the larger battle over resources in this world, we need to make some adjustments.

     The problem is that private industry just does not want to take the risk of entering these places, because there is just too much liability.  Besides, a private company does not have the full weight and support of a country behind it, but a Chinese owned company does. That is a huge advantage.

    I have talked about clashes before between free markets and state capitalism in the past, and a prime example was the battle between China and Google.  Another example was between Chinese companies and all of the privately owned oil companies going after contracts in Iraq. In both examples, China is able to win contracts or do whatever they want to bend the markets to their advantage, all because they have the full strength of a country behind such endeavors.  They can absorb risk, do whatever they want to their people, pay whatever they want, etc., and this hybrid machine called state capitalism is definitely a factor to deal with in the market place.

     So how do companies compete against such a thing?  That is a question that I am not qualified to answer. The book provides some answers, and I highly suggest folks to check it out. All I can provide in this conversation are some ideas to alleviate concerns about risk in these countries.  Private security is what private industry (along with free market supporting governments like the US) uses to protect their investments, and that is what I specialize in.  In this war between state capitalism and free markets, security contractors are right there on the front lines.

     One thing that can happen to help in our fight against state capitalism, is for capitalist countries to empower private security to do their job. If you make it impossible or difficult for us to be effective, then of course the risk will go up for those investors.  This is a fine line to walk, but it is necessary to address if you want to benefit from that free markets that capitalism needs in order to flourish.

     Now with Afghanistan, we have a deal where Chinese companies are aggressively pursuing these mineral claims and the rest of the world wants nothing to do with the things.  They fear the risk due to the war and politics of the region, and rightly so. With that said, all and effort must be made by the coalition to make that market more attractive to private industry and to allow private industry to do what it needs to do in order to alleviate that risk.  Because right now, we are losing that war between state capitalism and free markets in the places where the West has done all of the heavy lifting and dying. –Matt

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Afghanistan Moves Quickly to Tap Newfound Mineral Reserves

By ALISSA J. RUBIN and MUJIB MASHAL

June 17, 2010

KABUL, Afghanistan — The Ministry of Mines announced Thursday that it would take the first steps toward opening the country’s reserves to international investors at a meeting next week in London even as Afghans expressed a mixture of hope and doubt about the government’s commitment to develop the country’s newly documented mineral wealth.

The focus of the meeting will be the Hajigak area of Bamian Province, which has major iron ore deposits, the Mines Minister, Wahidullah Shahrani, said at a news conference here.

It was Mr. Shahrani’s first public appearance since news that the country had at least $1 trillion in untapped mineral resources became public after an article appeared Monday in The New York Times that detailed findings of the Pentagon and United States Geological Survey. Afghan officials described the $1 trillion estimate conservative and said their estimates suggested the reserves could be worth as much as $3 trillion.

“This good news has the potential of adding a lot of value to the economy of Afghanistan and it will serve the development of Afghanistan,” Mr. Shahrani said.

The previously unknown deposits include huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium. With so many minerals that are essential to modern industry, Afghanistan could be transformed into one of the most important mining centers in the world, according to American officials.

Two hundred mining investors from around the world have been invited to next week’s meeting in London where they will offer suggestions for how to develop the iron ore deposits at Hajigak, said Craig Andrews, the principal mining specialist for Afghanistan for the World Bank.

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Jundism: War Zone Corruption Allegations Up Sharply

     In Iraq, investigators have opened 67 fraud cases this year, compared with 69 for all of 2009, according to the Special Inspector General for Iraq Reconstruction (SIGIR). In Afghanistan, it’s 42 cases this year vs. four last year.

     Stuart Bowen, who heads SIGIR, says more tipsters are coming forward. “Some of these people have come back to the States, so they’re out of the threat zone,” he says. “Perhaps what they saw is gnawing at their conscience.” 

*****

     To me, this is great news.  It indicates to me that there is finally a connection between the guy on the ground and the folks tasked with investigating this stuff. That means guys and gals are talking and sending in tips because ‘they have the courage to do what is right‘ and the IG is acting on it. So bravo to you folks out there that are sticking it to these shady people and companies that think they can get away with this stuff.

     It also indicates that there are finally more investigators out there to actually investigate these tips.(contractors have been submitting stuff for awhile now) Although the government and tax payers would have been better served if they would have focused on this in the beginning of the war. Arguably, things would have been less screwed up if they had this manpower in the first place and it is a shame it has gone on this long like it has. The lesson to me, is you must have the necessary manpower and sound leadership in place to expand and contract with the dollars/stuff/people going in and out of war zones. Flexible and scaleable oversight is crucial. This kind of oversight is necessary not only for ensuring the tax payer gets a good value for their money, but that the actions of contractors or military folks does not negatively impact the war time strategy with their actions.

     That last part I cannot stress enough.  With today’s 24/7 media, the internet, blogs, cameras in smart phones, social media, etc., it is almost impossible to operate out of the public’s view. That means when a company screws up or does something it should not have done, the whole world ends up finding out about it.  And then whatever program and strategy that company was a part of in the war, is now threatened by that company who chose the wrong path. That is unacceptable in my view.

     Plus, I just love seeing shady companies/managers/individuals who screw over their fellow contractors or the government, get the heat. So keep sending in those tips to the IG, because what you have to say matters. It is an easy way to keep a company honest and on their toes. And maybe, just maybe, companies will actually start listening to their people and taking care of these problems or wrongdoing before they make their way to Youtube or the desk of the IG.

     Now one tip that I would like to present to the IG, if any of those guys are listening, is that you should also make an effort to connect with the ‘non-english’ writing, or computer illiterate contractors.  An Iraqi or Afghani contractor should have the means of connecting with you, because those folks see all sorts of wrong doings within their companies. The hordes of TCN’s from all over the world who are working on the bases, are in the same boat as well, and there should be an effort to reach out to them.  Perhaps a multi-language tip submit program involving anonymous call ins could be implemented there, because speaking a grievance would probably be better than them writing it.  Plus they could do it anonymously from the convenience of their phone. Interpreters could then translate the message and investigators can go from there.

     Also, there needs to be some pressure on the companies involved with TWISS.  I am getting lots of emails from expats and Ugandans about how screwed up that program is. And because this is an LPTA (lowest price, technically acceptable) program, the companies have all been racing to the bottom to out bid the other guy.  As a result, you have the lowest paid expats in the industry supervising poorly vetted Ugandans or whatever TCN group, and that dynamic does not promote a well running machine.  If anything, expats could care less about doing a good job, and those individuals only look at the job as a stepping stone to go onto something else. Most contractors involved with TWISS that I have talked with couldn’t wait to get out of that contract.

     LPTA does not work, it is a race to the bottom, and eventually LPTA is going to hurt the wartime strategy. The vetting of TCN guard forces like Ugandans is poor as well, and I place the blame on companies who are more concerned with cutting costs to outbid the other guy. They will say things like ‘that was the job of the training company we use in Uganda, and we had no part in that’ or ‘well company X in Uganda said they were good to go’.  Pffft. Meanwhile they man posts in Iraq with folks who are ill or cannot shoot a weapon or whatever, all because the vetting process is ‘technically acceptable’ and ‘lowest cost’. And why would US companies spend the money on this if they didn’t have to?

     It is a ‘race to the bottom’, and the government thinks this is a good idea. Wait until a poorly supervised or poorly vetted Ugandan kills some civilian or soldier, or fails at performing the duties of their post? That is not to say that there are not squared away expats or Ugandans in this program. But it is the program itself and the contracting vehicle that supports it, lends itself to such a screwed up set of circumstances. If the IG wanted a program to investigate, TWISS and the pathetic results of LPTA would be a good one to focus on. –Matt

Edit: 06/21/2010 -Doug Wethington from DCIS just responded in the comments below, and I wanted to put his information in an edit. Here is the important part:

I can also tell you we activity seek “non-English” sources of information for the reasons you site. We know these folks have valuable information and we try diligently to get the word out that we are interested in hearing what they have to say. I welcome any suggestions that will assist us with those efforts. We also welcome email tips, in whatever language, to:   icctf@iraq.centcom.mil

Forgot to add, the only phone number we currently have where a recording could be left and tranlation accomplished is the Defense hotline at 800-424-9098. I will take your suggestion and see if we can get a dedicated line with a recorder to receive complaints in country. Thanks for the advise.v/r

Douglas Wethington, Regional Director of Investigations, DCIS

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War zone corruption allegations up sharply 

By Aamer Madhani

June 17, 2010

WASHINGTON — The U.S. government, which is pressing Iraqi and Afghan leaders to get tough on internal corruption, is doing the same in its ranks.

Cases of suspected fraud and other wrongdoing by U.S. troops and contractors overseeing reconstruction and relief projects in Iraq and Afghanistan are up dramatically.

James Burch, the Defense Department’s deputy inspector general for investigations, says his agency is investigating 223 cases — 18% more than a year ago.

Investigators have charged an Army officer with pocketing cash meant to pay Iraqi civilian militiamen, contractors offering an Army officer $1 million for the inside track on a road project in Afghanistan, and three contractors for an alleged conspiracy to steal hundreds of thousands of dollars worth of fuel from a U.S. base in Baghdad.

Army Maj. John Cockerham was sentenced in December to 17½ years in prison for accepting $9 million in bribes for contracts to sell water and other supplies to the U.S. military.

(more…)

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