Feral Jundi

Friday, March 23, 2012

Publications: Structuring A Sustainable Letters Of Marque Regime, By Lieutenant Todd Hutchins

A big hat tip to David Isenberg for finding this paper and writing an excellent article about it. Also bravo to the California Law Review for publishing this paper and hopefully between this site and David’s, we can really promote this thing. I am always on the lookout for modern legal interpretations of, and the possible uses for the LoM.

It is also cool that the author of this paper is an officer in the US Navy and a current JAG student. Maybe he can come up and talk a little about any feedback he has received for this paper, and the reason why he chose this particular topic.

Now for a couple of points of interest. Lt. Hutchins is more focused on an international LoM system, as opposed to countries issuing LoM’s. You know, I don’t think this approach would work, just because personally speaking, I would rather answer to the laws and customs of my own country versus answering to an international court. What is to prohibit any biases towards me and my nationality in such a international court?  So personally, I would much rather have a LoM issued by a country whose legal system I trust and would give me the best odds in a trial of my peers–from my country.

I still think companies would seek an internationally issued LoM. Especially if the profit margin was there. If it is not, then the risk will definitely not equal the reward and this industry will not thrive. You really need to make the enemy into the ‘Blufin Tuna’ or ‘Buffalo’ of prizes.

Which brings me to my next point. Offense Industry requires a strong profit motive for the destruction or capture of a declared enemy. The reward must equal or be greater than the risk in this case. I tend to lean towards greater than the risk, just because we want extreme competition for this highly valuable enemy.

So the question with this is if the enemy has enough assets that can be seized and decided upon in a prize court. The guys with the money are on land or hiding out in Dubai or wherever. How will a company be able to seize their assets on the international stage?

Now privateers like Captain Morgan did do land raids to capture enemies and their assets. He was quite successful at it, and if we were to target Somali pirates, then allowing companies to raid wealthy Somali investors in Somalia or elsewhere would be key. But then that would require special agreements with those countries that these investors are hiding in. The LoM would have to be very specific and comprehensive in this regard.

Or, the issuing party could throw in bounties and create a false market out of the whole thing. To artificially attach value to these targets, as well as allow companies to seize assets. That to me would be optimum, just because you really have to sweeten the pot for companies to get involved with this thing. Perhaps the 10 percent that governments would receive via prize courts, would go back into the pot for bounties and costs of running prize courts?  Raising money for bounties is a factor when creating artificial values of targets.

I also applaud the author for identifying how expensive the current Defense Industry is for maritime security. I have mentioned in the past that DI’s are costly, and they do nothing to eliminate the problem. If anything, DI’s profit from the continuation of war or piracy, and it is against the best interest of these participants to remove the very thing that gives them their reason for existence. But DI’s have their place, and I believe that in order to reduce the costs of DI, you need to also implement an offensive capability. You will always need guards to protect that in which you love, but you must also have a force tasked with hunting the bad guys–to keep them off balance and put them on the defense. And ultimately, you would like to make piracy into a very unprofitable game for all parties thinking about getting into that business.

Finally, I would like to add one more deal to this review, just to emphasize the significance of profit and reward in warfare. This quote comes from Sun Tzu.

Now in order to kill the enemy, our men must be roused to anger; that there may be advantage from defeating the enemy, they must have their rewards…Therefore in chariot fighting, when ten or more chariots have been taken, those should be rewarded who took the first. Our own flags should be substituted for those of the enemy, and the chariots mingled and used in conjunction with ours. The captured soldiers should be kindly treated and kept….This is called, using the conquered foe to augment one’s own strength.- Paragraphs 16, 17, 18, Chapter 2, ‘Waging War’.

Even Sun Tzu understood the value of reward in war.  Might I add that the interpretation of ‘rewards’ refers to spoils, and not some ideological reward of just ‘winning’. Although that has it’s place for incentive, but feeling good about a win does not pay the bills as they say. lol

I should also note that Sun Tzu also delved into the concept of the cost of protracted war. It is expensive, and if there is no element of a strategy focused on eliminating an enemy, and industry is only used for defense, then the costs will continue to drain the treasures of those nations and companies with interest in the matter.

There is no instance of a country having benefited from prolonged warfare…It is only one who is thoroughly acquainted with the evils of war that can thoroughly understand the profitable way of carrying it on. –Paragraphs 6,7, Chapter 2, ‘Waging War’.

That pretty much sums up why wars should be fought as quickly as possible, and why there should be thought about creating an industry that profits from ending it, and not ‘carrying it on’. Something to give balance or even counter strong DI’s that come about from prolonged warfare. –Matt

 

 

Structuring A Sustainable Letters Of Marque Regime: How Commissioning Privateers Can Defeat the Somali Pira…

Friday, March 2, 2012

Legal News: McCaskill, Webb Introduce Comprehensive Contracting Reform Legislation

Thanks to POGO for posting this news and I would love to hear some feedback from our community on this. As an American and as a tax payer, I am all about contracting reform that leads to savings and minimizing waste and fraud. As a contractor, I am also enthused because I want to see good companies rewarded, and poor companies punished in this industry. Any tools that help make this process called contingency contracting more efficient, an asset to national interest and security, and rewards good behavior/punishes bad when doing business with private industry, is a good thing.

Below I have posted two videos made by the Senators that describe this legislation and all of the work that went into it. POGO provided a basic summary of some of the key points in this legislation on their website and here is a PDF of the legislation.

I guess the only reservation I have is the secondary effects of legislation like this. It is very hard to tell how some of this stuff will impact the guy on the ground. Will it increase the quality of contracts out there?  Will it hinder my ability to provide security services on these contracts?  Will this legislation hamstring national security, or enhance it?

Another fear is that now that the wars are winding down, that the lessons learned about contracting during war time will disappear or be marginalized. They mentioned this fear in the videos below, and it is food for thought.

My final point is that bravo to both Senators for recognizing the value of contractors. We are the other ‘All Volunteer’ force that makes our current volunteer military system work. These wars would have been radically different if the forces and support forces were raised by a draft. I personally think that a military supported by a contractor force is far more effective than a ‘slave army’.

A slave army is one where many of the participants are there because they are forced to be there. There is quite the difference between a military and contractor force filled with folks who want to be there or want to fight, and a conscripted military partially filled with folks who do not want anything to do with fighting or being in a war.

This system makes all the difference for war planners and political leaders who need time and flexibility when fighting an enemy and/or country that is not easily defeated within a short period of time. They need that flexibility for the politics of war, and they need that flexibility when situations change dramatically in a war–like losing partners in a coalition.

Does it make it easier for a country to go to war?  Maybe. Or maybe we have developed a way of warfare that fits well within the mindset and fabric of a modern liberal democracy? It also fits well within the plans of strategists and leaders tasked with protecting this country and supporting national interest. –Matt


McCaskill, Webb Introduce Comprehensive Contracting Reform Legislation

Wednesday, February 29, 2012
On Wednesday, February 29, 2012, Senators Claire McCaskill and Jim Webb introduced legislation to overhaul the federal government’s planning, management, and oversight of wartime contracting.  The Senators’ comprehensive reform legislation (S. 2139) builds on the recommendations of the U.S. Commission on Wartime Contracting in Iraq and Afghanistan – an independent, bipartisan panel that Senators McCaskill and Webb created through legislation they introduced in 2007.
Press release here.

 

 

Wednesday, February 1, 2012

Legal News: Four GardaWorld Contractors Charged Over Weapons

Here is the latest status on the four GardaWorld security contractors that were detained by Afghan authorities for transporting weapons. If GardaWorld or any friends and family would like to speak about this incident, please feel free to do so in the comments. I would also suggest to contact Kimberley Motley in Afghanistan for any legal assistance if the company is looking for resources. –Matt

 

Britons charged over Afghan guns
January 31, 2012
Two British private security contractors arrested four weeks ago in Afghanistan on suspicion of smuggling AK-47 assault rifles have been charged by Afghan authorities.
Local police detained the men, named earlier this month as Julian Steele and James Davis, along with two Afghan colleagues in the capital Kabul on January 3.
Afghan officials said they were found to be transporting 30 AK-47s with their serial numbers scratched off and did not have the necessary firearms permits.
The international security firm all four men were working for, GardaWorld, confirmed on Tuesday that a charge sheet had been filed.

(more…)

Tuesday, December 27, 2011

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

Filed under: Industry Talk,Iraq,Legal News — Tags: , , , — Matt @ 10:25 PM

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.

Thursday, December 22, 2011

Legal News: A Former Security Guard Files A Class Action Against SOC

Filed under: Legal News — Tags: , , , , , — Matt @ 10:55 PM

This is interesting because it details a little bit of the recruiting practices of this company. I have heard about the 65,000 a year dollar number thrown around before, but I did not know that SOC was playing around with the numbers like this. Here is the quote:

Risinger, a California resident, says he was hired in 2010 to work as an armed guard at a Baghdad military base , on a 1-year assignment for a flat salary of $65,000. But when he and others arrived in Iraq, he says they were told that the salary was “calculated based upon a $17.36 hourly rate, which hourly rate would dictate class members’ actual pay based upon ‘the number of hours on your time sheet.’ At that hourly rate, without overtime, an employee would earn $36,108 a year. A worker would have to work 72 hours a week at straight time to earn $65,000 a year.

That sounds a lot like the whole ‘bait and switch game’. Meaning they recruit folks with the idea that they would get a specific amount, and then once in the war zone, they would clarify what the individual would really make. Which usually would be less money than originally offered. The IC has the option to suck it up and take the pay cut, or get on a plane and go back home. The companies usually bank on the idea that the IC will just suck it up and stay.

Although the problem with this is that usually this practice creates disgruntled workers, and with good reason. So then you have guys working the contract that could care less about doing a good job, who do not trust the company, and are doing all they can to secure another job somewhere else.

That is a horrible way to do business, and any company that thinks this is an acceptable practice is wrong. You might save a little money in the short term, but you will lose money because you have to keep hiring new guys and fly them over all of the time to deal with high attrition. Not only that, but you are in constant threat of default on contract because you have IC’s that could at any time just leave because they do not want to work for the company. You also lose out on company reputation, and you lose the most valuable asset a company could have–experienced good leaders.

Experienced good leaders are the ones that believe in the company and contract, and have stayed around long enough to know the job really well and know how to manage it. They are also good at leading people, and making sure everyone is happy and doing the job. Any company that has set up a system that does not grow and keep experienced good leaders, will certainly suffer the consequences of such poor practices.

Also, if the government was focused more on best value contracting, and stopped this practice of lowest priced technically acceptable contracting, then they could actually pick companies based on how they treat their people. A contracting officer should be able to take a look at the attrition rate of any company and ask, is this the kind of company we want protecting our camps in the war zones?  And what causes such a high attrition rate within this company?  Or even ask if the IC’s of that company are happy to be there and like the company they are working for?  If the contracting officer is getting some intense negative feedback from a multitude of disgruntled IC’s who do not trust the company, then that might be a sign that the company is not exactly the best folks to do business with. –Matt

Edit: 01/01/2012 By the way folks, the lawyer for this particular class action is reaching out to all former or current SOC contractors and employees listed within a specific time frame. If the case is successful, then expect to get a piece of the settlement or award if you are within that group. Here is the email he was sending out.

We have brought a class action lawsuit on behalf of all SOC employees (former and current) who worked for the Company between December 19, 2009 and December 19, 2011 for unpaid wages, including overtime, rest breaks, meal breaks and possible other items like medical expenses. While the class action process can be slow, we expect to be obtaining from SOC within the next 6 months the names of all individuals that would make up the class of employees. In the meantime, I am also keeping record of all persons, like yourself, who have experienced the labor code violations we allege in the complaint so that I can cross-check the list we get from SOC with the names of the people we have been contacted by to make sure that you are included in the class and any settlement unless you choose not to be a part of it. There may come a time when I do need to get declarations from persons like you to support the case and when that happens, I will certainly reach out to you.

Best, Scott

Scott E. Gizer- Partner Early Sullivan Wright Gizer & McRae LLP,  sgizer@earlysullivan.com www.earlysullivan.com phone: 702 990 3629

 

Ripped Off in Iraq, Class of Guards Claims
By NICK DIVITO
Wednesday, December 21, 2011

A private security guard in Iraq says in a class action that his employer SOC Nevada made its employees work up to 12 hours a day, seven days a week, in “ultrahazardous conditions” without overtime pay or breaks.    “SOC’s core mission changed from ‘Securing Our Country’ to ‘Lining Its Pockets’ when it began to recruit employees … under false promises of a fixed salary and scheduled with time off,” lead plaintiff Karl Risinger says in the complaint in Clark County Court.     “[D]ue to a lack of adequate staffing driven by corporate greed,” SOC subjected its armed guards to “undue risk by jeopardizing the physical and psychological condition of the class members in the course of ultra-hazardous activities,” the complaint states.

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