Feral Jundi

Tuesday, May 1, 2012

Industry Talk: PSC That Handled The White House’s ‘Burn Bag’, Files For Bankruptcy

This isn’t good. lol I mean a lot of attention is put on overseas security contracts, but what about stuff like this? I am not familiar with TW & Co. but it is odd to me that they would owe this much in taxes and no one, to include the Secret Service, did not know about this? Or they knew what was going on, and they just looked the other way. Who knows?

Which also begs the question, why is a company like this even allowed to ‘sell off’ it’s contracts, and especially after showing such irresponsibility? How about kicking them off the contract, and re-bid the thing using ‘best value’ as a tool to get the best deal for the White House?

The 617-worker company said it would use the bankruptcy case to shut down its operations and sell off its 22 contracts for the best price it can find.

And if the Secret Service is in charge of this stuff, that maybe they should keep a little closer tabs on the companies that operate this close to the Presidency? (although they have been busy with their own problems recently….)

In my view, every company that works there, should be the best and most squeaky clean companies out there.  Hopefully, whomever they sell these 22 contracts too will be responsible folks that actually pay their taxes. –Matt

 

Security Firm Handled White House’s ‘Burn Bag’
By Katy Stech
April 30, 2012
The government contractor that disposed of the White House’s secrets kept one of its own: It hasn’t paid its taxes in full since 2008.
That admission came spilling out into bankruptcy court less than a week after Maryland-based security-guard provider TW & Co. filed for Chapter 11 protection owing nearly $3 million on its federal tax bill. The 617-worker company said it would use the bankruptcy case to shut down its operations and sell off its 22 contracts for the best price it can find.
“The end game is an orderly liquidation,” bankruptcy attorney James Greenan told Bankruptcy Beat.
So far, a bankruptcy judge has allowed the company to transfer management of its biggest contracts to a subcontractor, ensuring that the federal institutions like the historic Winder Building, some Smithsonian buildings and several Air Force bases don’t go unwatched as the company searches for a buyer to take on the work permanently.

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Saturday, April 28, 2012

Somalia: South African Contractor Killed In Puntland

Rest in peace to the fallen and my heart goes out to the friends and family of Lodewyk Pietersen. As to the particulars of this incident, the article states that he was killed by his bodyguard after an argument. A Somali version of a green and blue incident, and these type of incidents are not exclusive to Afghanistan.

I thought it was interesting that reports mentioned that these contractors might be going out on missions with the PMPF. Here is a quote from Garowe online. (on a side note, if the PMPF is doing land operations, then why are they wearing bright blue uniforms?-camouflage anyone? lol)

Although reports are still unclear instructor Pietersen accompanied the PMPF in the operation and was killed shortly after entering Hul-Anod district.
Puntland forces have encountered resistance in Hul-Anod before in March 2011 pirates holding a Danish family hostage attacked Puntland forces that were stationed in the district, 5 soldiers were killed.
The Puntland government approved Friday’s operation by the PMPF and it is unclear what exactly occurred in Hul-Anod Friday afternoon but Puntland authorities have already set up an investigation into the killing of Mr. Pietersen.

And the report below said.

The statement said the trainer was killed while accompanying Puntland’s maritime forces on a government-approved mission targeting pirates near Hul-Anod, a coastal area favored by pirates who use it as a base to hijack ships for ransom.

So perhaps Saracen Int. are accompanying these guys on missions and it would make sense. Contractor mentors have been used in other wars, like in Afghanistan with the Afghan Border Patrol mission. Mentors can watch how these guys do business, and help correct training deficiencies and assist in management efforts so future missions have higher success rates.

Hopefully Puntland or Saracen will do some vetting of all of their bodyguards contracted to protect trainers, and make sure that they have folks that they can trust. If they catch the killer, we will see what this guy was all about. Was he mentally ill or an enemy combatant of some type? Perhaps the killer was sympathetic to the pirates, or working for the pirates in Hul-Anod? –Matt

Edit: 04/28/2012- I was given a heads up in an email about a few corrections. Somalia Report is reporting this bit of information, and it sounds like Lodewyk had a full blown mutiny on his hands, and not some rogue body guard. Here is a quote from the website below. Also, I was told that this was not a Saracen International contractor, but some other company that took over when their contract was suspended.

The South African national was monitoring a troop of Somali anti-piracy police ordered into Timirishe village in a move against pirates of the ali Salabeen clan.  When ordered to proceed with the mission, the troops began firing their guns into the air and into the ground, apparently in an effort to warn the pirates.
Sources at the scene told Somalia Report that the mentor then approached the group to encourage them forward and was shot and killed. There is still confusion over the exact motive and exactly who the killers were. PMPF sources told Somalia Report that an investigation is underway.

Edit: 04/29/2012 The name of the company was Sterling Corporate services. Here is a quote from Lloyds back in February of this year.

It is understood that the force currently stands at around 300 officers and  more will be added in time, with UAE-registered private security firm named Sterling Corporate Services having been retained to train the troops

Puntland Maritime Police Force(PMPF)Photo-Garowe Online

 

South African security trainer killed in Somalia
April 28, 2012
A South African security trainer was killed by his bodyguard in Somalia’s semiautonomous region of Puntland, officials said Saturday.
Puntland’s government said in a statement Saturday that it had launched an investigation into Friday’s killing. The statement identified the man as Lodewyk Pietersen, and said he worked for Saracen International, a security firm that trains anti-piracy forces in Puntland. The statement said the South African was 55 and married with children.
South African foreign ministry spokesman Clayson Monyela said Saturday no official word has been received from consular staff handling South African interests in Somalia.
“We have not yet been alerted to such an incident,” he said.

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Thursday, April 26, 2012

Publications: Selective Privatization Of Security: Why American Strategic Leaders Choose To Substitute PSC’s For National Military Forces, By Bruce Stanley

This study argues that when political leaders chose to reduce their nation’s military force structure, they may face conflicts beyond their anticipated scope and duration. Such decision- makers are left with no choice but to legalize and legitimize the use of PMCs resulting in the increased use of PMCs as a deliberate tool of foreign policy.

A big hat tip to David Isenberg for finding this paper and posting his commentary about it. What makes this so significant is that the author of the paper is actually using qualitative and quantitative analysis to prove exactly what the reason is for the rise of the use of private security contractors. It is this kind of analysis that can be pointed to as ’empirical’ evidence for what is really going on with this industry. Here is what David had to say about the paper:

Considering how many times over years I have critiqued the private military and security (PMSC) industry for making claims without providing evidence to back it up, it is always noteworthy to find that rare person who tries to fill that empirical evidence gap.

Absolutely. This is important stuff, and especially for those that are policy makers in government. It is also important information that companies can use for strategic business planning.

I also really enjoyed the use of economic theory in this paper. In essence, this model of dissertation is pretty close to what I would use for something like Offense Industry.  It is also interesting to point out that the author did come across some speed bumps when it came to incomplete data.

To be accurate in analysis, you need good data. Because the US government didn’t record as well as they could of, all of the contractors involved with this war and what they did, that studies like this one can suffer a little. The author pointed this out, but he was able to come to some interesting conclusions.

Summary
This dissertation was framed around the question of why there has been a rapid growth in the reliance on the private security industry in US foreign policy in the past two decades. More importantly this dissertation sought to demonstrate: first, that the use of private security contractors by the United States is not a new phenomenon; second, that the recent increased use of private security as an instrument of military policy or foreign policy may in fact be a consequence of deliberate policy decisions of successive presidential administrations; and third, that the security environment in the target state of an intervention is a factor that results in an increase of private security contractors. The goal of this dissertation was to move beyond most of the extant literature which describes the phenomenon, and develop theory that helps explains why there has been a rapid growth in the reliance on the private security industry.
This study argues that when political leaders chose to reduce their nation’s military force structure, they may face conflicts beyond their anticipated scope and duration. Such decision- makers are left with no choice but to legalize and legitimize the use of PMCs resulting in the increased use of PMCs as a deliberate tool of foreign policy. Using “supply-demand” theory as the theoretical approach, this dissertation built upon the three key influences emphasized first by Singer (2003) and then by others: the decreasing supply of national troops, decreasing national defense budgets, and the rising demand from global conflicts and humanitarian emergencies.
As the previous chapters demonstrate the basic theory and thus insights from the descriptive literature have value, however they failed to provide a fully exhaustive explanation of this important phenomenon. The additional elements added to the relatively spare theory resulted in a more convincing explanation of the increased use of PMCs. In sum, this study added precision to our understanding of the causes of the increased use of PMCs.
This chapter examines the findings of my dissertation, a few methodological problems, and suggests some areas for further research. The next section presents the theoretical discussion and empirical findings and conclusions from the qualitative and quantitative section. The section that follows provides a few suggestions on how to improve the research design. The final section offers a few policy prescriptions and areas for further research.
Findings
This study asserted that the private security industry fills vacuums created when the US government does not have the means or the will to fully provide domestic and international security. To understand the broader context of the private security industry’s relationship to mature democracies this dissertation focused initially on five hypotheses:
H1: When military outlays decrease there is an increase in the use of private security.
H2: When the size of a national military decreases there is an increase in the use of private military security.
H3: When the number of a military disputes, military engagements and militarized conflicts increases there is an increase in the use of private security internationally.
H4: When the duration of a military conflict increases there is an increase in the use of private security.
H5: When there is a decrease in bureaucratic controls and regulations there is an increase in the use of private security.
Three additional hypotheses were added to this study upon completion of the case studies. They are:
H6: When there is a force cap placed on the size of the military force there is an increase in the use of private security.
H7: When there is no host nation supporting the intervention there is an increase in the use of private security.
H8: When the security environment is non-permissive there is an increase in private security.
Using a mixed methods approach, the hypotheses were tested using both a qualitative and quantitative approach. The qualitative approached relied on the case method, using a series of structure focused questions to compare the outcome of three historical cases where the US used private contractors. As a result, the controlled comparison helped identify the outcome of the dependent variable, private contractors, and provided a historical explanation of private contractors in relation to a set of independent variables. In this instance, structured, focused comparison helped to tease out exactly how supply, demand and other pressures help to stimulate the rise of PMCs.
The quantitative approach relied on a statistical method, using interrupted time series to examine the use of private contractors by the US from 1950 to 2010. The quantitative component analyzed a larger time period and increased the generalizability of the findings. It also provided insight on the relative explanatory weight of different causal influences.
The findings of this research demonstrates that the three key influences asserted in the extant literature the decreasing supply of national troops, decreasing national defense budgets, and the rising demand from global conflicts and humanitarian emergencies are very important to understanding the rise of the private security industry in the past two decades. Yet as this dissertation shows the nature of the security environment in the target state and the reduction (or elimination) of bureaucratic controls in the acting state are also important to explaining the increased reliance of the private security industry. Two other variables that were prevalent in the case studies that may be a factor in the increased reliance on private contractors: limitations on the number of troops committed to an intervention, and the duration of the intervention.

So that is is pretty interesting. A company can literally look at the current situation and say that if their country decreases the size of their military force, the size of that military’s budget decreases, and there is a dramatic increase in conflict/emergencies, that the demand for force will more than likely point towards the use of PMSC’s. And you can see that going on throughout the world as we speak.

But the thing that I look at is the strategic uses of PMSC’s. I have always argued that this industry is a strategic asset, and not a liability–regardless of the few hiccups this industry has had over the years. We are what made the concept of an ‘All Volunteer Force’ work. Here is the quote that grabbed my attention.

Policy Implications
State policy makers may be able to use the results of this study to inform decisions on military budgeting, structure, or civil-military relations. As the worldwide economic crisis continues, policy makers faced with budget choices will look to reduce their military expenditures and possibly their military force structure. However, if they are faced with foreign policy problems requiring military intervention, then it should not be surprising if they substitute national military forces for private security forces. It is likely that more state policy makers may move towards the legalization of private security companies. Thus, the trend towards legalization leads toward further legitimization of the use of private security contractors. The US has certainly set the example in the past twenty years for other nations to follow.

This legalization process is the one thing that I am always on the look out.  The Letter of Marque is probably the most significant legal mechanism out there for authorizing companies to wage war in the name of the state.

As to current legalization processes, I would have to say that it has been slow and tedious. But we are seeing movement, and the Commission on Wartime Contracting is a prime example of that effort. I point to the recent legislation that members of this commission put forth–which helps to further legitimize this industry.

As the industry is further legitimized by lawmakers seeking better controls over it, then the comfort in using such a force for foreign policy increases.  Most of all, it allows this nation to enjoy their ‘peace dividend’ at the end of wars, but at the same time have a mechanism in place that can support a call up of force for whatever emergency or conflict that may come up.

The use of the ICoC and the standardization process that is currently going on throughout the world is another example. Efforts like this will further legitimize the use of private security and will help to increase it’s use. Even with the current grey areas of legal use, we are seeing the maritime security industry grow at an incredible pace. Armed guards on boats is definitely another example of this increased use of private security.

As for actual strategy, sometimes private force is the better option. It gives politicians the ability to quietly buildup or draw down for a conflict. Private forces fill in the gaps as the use of force is debated, depending on the current political environment. Meaning one day, a President might have a specific strategy for a conflict that a nation is involved with, and then within a month when that President is voted out of office by a President with a different strategy, then that military must be able to flex with that.  Private security is what allows for that flexibility.  Likewise, PMSC’s have been used by two Presidents of different parties, both with different strategies, and in multiple wars over the last ten years. Obviously someone likes us. lol

In fact, we have actually reached a point in the war where there were more contractors than military force in places like Afghanistan. Or that contractors became the primary force representing US interest in places like Iraq.

In closing, it is amazing to me that we have this massive officer corps for the military, numerous think tanks, and plenty of military colleges that all focus on the use of ‘military force’.  And yet, private force is making this much of an impact on the way we do business? Does anyone else see the imbalance here? Where are the think tanks dedicated to the use of PMSC’s?  Where are the PMSC colleges and universities? What institutions other than the military or business schools produce the future leadership of ‘private security and military companies’?

It is also odd to me that there are so few voices talking about this.  I can count on my hand, the number of blogs or journalists that purely focus on PMSC’s. It is nice to enjoy a niche like this as a blogger. But for how significant this industry is, and how fast it has grown, I would have thought that more folks would have come into the mix to analyze and synthesize about this industry. Interesting stuff, and it really makes you think. A big hat tip to Bruce Stanley for the work he put into this! –Matt

Link to paper here.

Monday, April 23, 2012

Afghanistan: New Pact–US Ready To Defend Afghanistan For At Least A Decade After 2014 Drawdown

Filed under: Afghanistan,Industry Talk,Strategy — Tags: , , — Matt @ 11:51 AM

“If the Taliban are back in the political process, being imposed on us, the Afghan people will definitely resist, paving the way for another war to happen,” Zia Massoud told Reuters in an interview at his home in Kabul.

“If the Taliban want peace, we are ready to make peace, but if they want to fight, there will be a fight. That’s it. If you coddle them, give them a political address and other gains, they will never be ready for any talks,” he said. -Daily Outlook Afghanistan, January 21 2012

There are two deals with this that are of importance. Afghanistan is a strategic position for the US to keep tabs on Al Qaeda/Taliban in Pakistan. So having some type of presence in Afghanistan helps in that goal.

The second deal is that as troops pull out, the Taliban will increase their attacks and you will begin to see the strengths and weaknesses of the Afghan government rear their ugly head. Not that we haven’t seen this already, but when the Afghans are up against an enemy that has been fighting a professional military like the west, I tend to think that the Afghan army and police will have some issues. So having some kind of presence in Afghanistan as this new dynamic unfolds will be crucial.

With that last part, my attention is on the latest formation of Afghans whom have come together to show solidarity against the Taliban and an Afghan government that shows weakness in the face of the Taliban. This group is called The National Front, or what is basically the new Northern Alliance. One of the members of this new Northern Alliance crew is Ahmad Zia Massoud, the brother of the late Afghan ‘Lion of Panjshir’– Ahmad Sha Massoud.

Why is this important?  Because I think in a world where the Taliban are surging and causing a lot of pain, the weak leaders will crumble, and the strong leaders will rise to the top and meet the challenge of opposing the Taliban. My hopes are that Karzai crumbles, and goes back into his hole where he belongs, and the National Front grows a leader that can stick it to the Taliban and get Afghanistan on the right path.  Here is what the Asia Times had to say about the National Front.

“This is the first time that the leadership of the Tajik, Uzbek and Hazara communities [of Afghanistan] has come to a common line of thinking … In essence, the Northern Alliance is being resuscitated as a political entity. … As the Northern Alliance groups see it, Pakistani strategy is to wait out the period between now and 2014 – the date set for the US troop withdrawal – and then regroup the Taliban and make a bid to capture power in Kabul. Their strong show of unity in Berlin suggests that they will not roll over and give way to an exclusive US-Taliban-Pakistan settlement being imposed on their nation.”

So in my view, having some troops/contractors on hand to help train Afghan forces, and bide our time until ‘real’ Afghan leadership surfaces, could make for a good little alternate plan, on top of dealing with threats in Pakistan.

Kind of a repeat of 2001 where SF units were able to help the Northern Alliance deliver crushing blows to the Taliban.  In that case, Afghans truly feared and hated the Taliban, and were fighting them with a sense of purpose. I mean look at what the Taliban did to the Hazaras back in 1998?

On August 8, 1998 the Taliban launched an attack on Mazar-i Sharif. Of 1500 defenders only 100 survived the engagement. Once in control the Taliban began to kill people indiscriminately. At first shooting people in the street, they soon began to target Hazaras. Women were raped, and thousands of people were locked in containers and left to suffocate. This ethnic cleansing left an estimated 5,000 to 6,000 dead.

Now of course the Hazaras have done all they can to get back at the Taliban, but my point here is that there is some bad blood between the members of the National Front and the Taliban. These guys do not plan on living under Taliban rule–or under a government that appeases the Taliban.

I also think that common Afghans, many of whom are Pashtun, might have no problem with the Taliban. That is a nice attitude to have, seeing how the west has kept the Taliban from imposing their rule on the people. But if the Taliban do take over, look out. The people can kiss goodbye what little freedoms they enjoyed, and the Taliban will take them back into medieval times.  Pulling out the majority of troops and letting Afghans deal with this new potential reality might be a good thing. It would force people to re-evaluate what they really want–oppression or freedom?

There are other reasons to being in Afghanistan, like having an eye on Iran. But dealing with Al Qaeda/Taliban in Pakistan and being in position to support (if they need it) a new National Front as it forms are the ones that stand out to me.

As to the contracts in the future? One thing is for sure. If you sell Afghanistan military hardware, then you need the support/mentors/trainers to help them with that stuff. Also, all of those reconstruction contracts and investors looking to do business in Afghanistan will still need protection or advisers to help them navigate that place. (especially as the APPF falters) Also, diplomatic missions will continue to be important, hence WPS will still be in place. Then of course getting all of that equipment out of Afghanistan will be crucial as well. Here is a quote about how much money will be spent there in the future.

The U.S. pledged in the agreement to continue to fund Afghan security forces after 2014. It does not say how much money this will involve, but says it should be enough to support the force. U.S. officials have said they expect to pay about $4 billion a year to fund Afghan forces, but the funding would have to be approved by Congress.

On a side note with the equipment in theater, I am wondering how much we will leave versus how much will be taken out?  It is extremely expensive to get stuff into and out of Afghanistan, and perhaps we might see a lot more equipment just handed over to the Afghans? Compare that to Iraq and the massive operation to get equipment out of there.  Who knows, but I do know that contractors will be crucial to that effort.

In essence, what you are seeing in Iraq now, will probably repeat itself in Afghanistan.  So contractors will have utility in one shape or another in Afghanistan to make the transition go smoothly and support the continuing efforts. –Matt

 

Ahmad Zia Massoud.

 

Afghan-US pact: US ready to defend Afghanistan for at least a decade after 2014 drawdown
April 23, 2012
Washington has pledged in a newly agreed strategic pact to help defend Afghanistan militarily for at least a decade after the country formally takes control of its own security, an Afghan official said Monday.
The draft agreement signed on Sunday also says the U.S. will only take such actions with Afghan agreement. The United States also pledged it will not launch attacks on other countries from Afghan soil, according to sections of the accord read out in parliament by Afghan National Security Adviser Rangin Dadfar Spanta.
Afghan officials had previously said that they would not allow their country to be used to launch drone attacks into Pakistan or other neighboring countries after the deadline for most foreign forces to withdraw by the end of 2014.
“Considering that stability in Afghanistan would be stability for Central Asia and South Asia, the United States emphasizes that any kind of interference in Afghan affairs would be a matter of concern for the United States,” he said, quoting from the Dari language version of the agreement.

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Friday, April 20, 2012

Industry Talk: ASIS Receives ANSI Approval For World’s First Standard To Support The Code Of Conduct For PSC’s

Filed under: Industry Talk — Tags: , , , , , — Matt @ 5:35 PM

“This remarkable international effort demonstrates the importance of this industry sector in support of peace and stability around the globe,” says Dr. Marc Siegel, commissioner, ASIS International Global Standards Initiative and chairman of the Technical Committee. “PSCs need to conduct their business and provide services in a manner that respects human rights and laws. The standard creates a differentiator for PSCs to assure quality of services while maintaining the safety and security of their operations with respect for human rights and fundamental freedoms.”

Now this is cool. With ANSI approval, the ICoC is one step closer to being an ISO standard.  Or basically a standard that is officially recognized world wide as the standard to judge or pick a company by. So if a company in India meets the ISO standard, then a client from the US could contract with that group and know what that minimum standard that company is abiding by–in order to have that ISO standard.

It’s kind of like this. ISO has been crucial to the automobile industry. It is what allows the global market place for cars to exist.  If a car made in China is made to an ISO standard, then that car can be sold in another market/country that has the confidence that it is safe and built to a standard that is internationally recognized. So that is the angle here for PSC’s.

A standard also helps in the principal agent problem. If the principal will only work with companies that have an ISO stamp, and that agent knows that principals will not look at their company unless they have an ISO stamp of approval, then you can see where the value is to both parties. Without that standard, then a principal has to use other less efficient means of finding out who is good, and who is not. But the big one here is that the ISO would have value, because to not meet those standards would make you not marketable. Especially if one company in the US, wants to work for a client in Europe–both parties would know the standard that is expected.

Why standards matter (from the ISO website)
Standards make an enormous and positive contribution to most aspects of our lives.
Standards ensure desirable characteristics of products and services such as quality, environmental friendliness, safety, reliability, efficiency and interchangeability – and at an economical cost.
When products and services meet our expectations, we tend to take this for granted and be unaware of the role of standards. However, when standards are absent, we soon notice. We soon care when products turn out to be of poor quality, do not fit, are incompatible with equipment that we already have, are unreliable or dangerous.
When products, systems, machinery and devices work well and safely, it is often because they meet standards. And the organization responsible for many thousands of the standards which benefit the world is ISO.
When standards are absent, we soon notice.
ISO standards:
-make the development, manufacturing and supply of products and services more efficient, safer and cleaner
-facilitate trade between countries and make it fairer
-provide governments with a technical base for health, safety and environmental legislation, and conformity assessment
-share technological advances and good management practice
-disseminate innovation
-safeguard consumers, and users in general, of products and services
-life simpler by providing solutions to common problems
Check out the ISO Cafe for more examples of the impact of this system.

Very cool and we will see how it goes. We will see how long it takes to get from ANSI all the way up to ISO, but this is a big step closer to that goal. Good job to all involved and a big congrats to ASIS. –Matt

 

ASIS International Receives ANSI Approval for World’s First Standard to Support the Code of Conduct for Private Security Service Providers
Alexandria, VA
April 20, 2012
ASIS International(ASIS), the preeminent organization for security management professionals worldwide, received ANSI approval for its standard, Management System for Quality of Private Security Company Operations – Requirements with Guidance(ANSI/ASIS PSC.1-2012). Developed by a Technical Committee comprised of more than 200 members from 24 countries, this standard establishes a mechanism for Private Security Companies and their clients to provide demonstrable commitment, conformance, and accountability to the principles outlined in the International Code of Conduct (ICoC) for Private Security Service Providers.
Private Security Service Providers including Private Security Companies (collectively “PSCs”) play an important role in protecting state and non-state clients engaged in relief, recovery, and reconstruction efforts; commercial business operations; diplomacy; and military activity. The purpose of this standard is to improve and demonstrate consistent and predictable quality of services provided by PSCs while maintaining the safety and security of their operations and clients within a framework that aims to ensure respect for human rights, national and international laws, and fundamental freedoms.

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