Feral Jundi

Wednesday, December 19, 2012

Industry Talk: Afghanistan Seeks Taxes From Contractors To US

These guys kill me. What part of this bilateral agreement do the Afghans not understand? Here it is again, just to emphasize how stupid this is.

A 2003 bilateral agreement states the U.S. government, “its military and civilian personnel, contractors, and contractor personnel shall not be liable to pay any tax or similar fees assessed within Afghanistan.” A subsequent 2004 Military Technical Agreement also carved out a tax-free status for contractors to the U.S., a view that has been reinforced by U.S. officials in correspondence with Afghan officials.

Not only that, but because of this dumb APPF force, these companies are forced to used government security. I don’t know if the APPF was protecting Contrack International or not during this latest attack, but I do know that according to the business folks in that area, they have been screaming for more security in that area for awhile. It is a logistics hub, and attacks on such sites are part of the Taliban goal of inflicting economic damage.

We will see if the US can press back and protect these companies that are essential to the war effort. I think this quote says it all, if the US cannot square this away.

A person involved in logistics issues said the matter could come to a head if the Afghan government imposes fees or restrictions on cargo that slows the delivery of goods to forward operating bases, or FOBs.
“We’ve been told [by the coalition] to reduce stocks. So they’ll run out of fuel and they’ll go on MREs on some of these FOBs,” the person said, referring to the military’s packaged rations. “And little Johnny’s going to call Mom, and that’s now going to be all over the press.”

We will see how it goes? –Matt

 

 

Afghanistan Seeks Taxes From Contractors to U.S.
By NATHAN HODGE
Afghanistan has launched tax audits of major contractors to the U.S. military, government officials say, in a bid to shore up the country’s finances as the international military presence winds down and reconstruction funds dry up.
In particular, Kabul is focusing on the U.S. military’s main food supplier in Afghanistan, Supreme Foodservice GmbH, alleging that the company and similar logistics firms are abusing their status to illegally bring taxable goods into the country for resale.
Supreme says it isn’t engaging in any commercial activity in Afghanistan that should make it liable for taxes.
Kabul’s move potentially puts the Afghan government at odds with Washington, which has viewed, with limited caveats, materials imported to support the 66,000 U.S. forces here as exempt from taxation and customs fees. Since 2005, the Pentagon spent more than $7.9 billion on its food-supply contract with Supreme alone, awarding the company an additional $1.5 billion extension contract this past summer.

(more…)

Thursday, November 15, 2012

Legal News: Returning Wounded Contractors Face Second Battle, Against AIG

Filed under: Industry Talk,Legal News — Tags: , , , , , — Matt @ 10:56 PM

This is a good article in regards to the nitty gritty of dealing with DBA ‘potential’ pitfalls, if you get injured as a contractor. I say potential, because not all contractors have had these horror stories with DBA and their dealings with AIG.

But if you are having issues with DBA, then the cool thing about this story is it has identified one of the country’s best DBA claims lawyers–Gary Pitts. His firm would be a good resource if you are coming up against some problems with your claim. –Matt

 

After his rig bottomed out in a bomb crater, AIG made former KBR trucker David Boiles of Willis suffer through 14 months of agonizing back pain and sciatica before they authorized surgery.

Returning War Contractors Face Second Battle, Against AIG
Whatever your role in the U.S. war effort, if you were injured overseas, at least you’d be covered back home, right?
By John Nova Lomax
Wednesday, Nov 14 2012
Ever since that June day in 2010 when the roadside bomb detonated ten feet from the cab of his truck on a dusty road in Iraq, Terry Enzweiler has not been the same. He gets lost coming back from the same grocery store he’s shopped in hundreds of times; his daughter had to buy him a GPS to help him navigate his own neighborhood. He takes Xanax and Zoloft to combat the symptoms of post-traumatic stress disorder.
“The Xanax stops me from jumping through the roof when a pencil falls on the floor,” he says.
Even medicated, his blood still curdles when he hears Arabic spoken on TV or drives through one of the Chicago area’s Muslim neighborhoods. He wore earplugs for much of the week leading up to and right through the Fourth of July. “Those half-sticks sound just like a .50-cal,” he says, referring to a type of heavy machine gun.
The chuck-chuck of helicopter blades terrifies him, as does the sight of his own 25-year-old son. In Iraq, 46-year-old Enzweiler, a recent client of Houston attorney Gary Pitts, saw a dead Iraqi child who looked just like his boy did 13 years ago. “My psychiatrist said it’s like a marriage where there’s been infidelity,” he says in a phone interview. “The wife forgives the husband. Two years later, she sees a blond woman in a blue dress. Two years prior, the other woman looked like that. So in the mind, the two images come together, and for absolutely no reason, you become furious, and your subconscious takes over. It’s the same thing now. When I see my son, I think of that kid. I saw some horribly gruesome stuff over there.”

(more…)

Saturday, November 3, 2012

Publications: CRS On Contracting–Learning From The Past And Preparing For The Future, By Moshe Schwartz

This is a great little document, just because Moshe Schwartz has been in the middle of this contracting reporting game for a long time, and has come up with some great lessons learned. He also works for the congressional research service and has authored several reports on the war that I have commented on in the past.

Some stuff that jumped out at me was the idea of teaching ‘how to manage contractors’ in the military academies and schools. To actually have mock contractors on exercises with the military, so officers and NCO’s have some experience working with this group. Especially since we make up over ‘half’ of the forces in the war–it kind of makes sense that the military should learn to how to work with and manage this force. So bravo to Moshe for pointing this out and I hope the military continues to pursue this and professionalize contractor management.

This leads me to another thought. I think the best group to set up mock contracting scenarios during exercises, would be contractors themselves. So perhaps this would be a niche that a company can provide to the military? There are numerous companies that provide mock villages and cultural training to the military to better prepare the troops before they deploy. The same concept could be applied to training the military on how best to work with and manage contractors.

One of the mantras of the military is to train as you fight and fight as you train. Given the extent to which contractors may be relied upon in future operations, conducting exercises without contractors could be akin to training without half of the force present. A number of analysts have called for incorporating contractors and contractor scenarios into appropriate military exercises to better prepare military planners and operational commanders for future operations. -pg. 7-8

Another way to look at this is that contractors, much like Iraqis or Afghans, are a group that you must understand ‘culturally’ in order to best work with them. I say culturally, because strangely enough, not all contractors are prior service. And not all contractors come from the US. So you have a lot of factors that the military command has to deal with, if they want those contractors to be assets to the mission and not liabilities.

Which brings me to the next point of interest. Moshe mentioned that as the wars wind down, and troops and budgets get cut, the military will be looking for ways of saving money and expanding the usefulness of the manpower they have. So to do that would require a smarter use of contractors to support the programs they have. The British mentioned this as well in their drive to save money and stay operational.

To what extent will potential budget cuts or force structure changes impact DoD reliance on contractors?
As discussed in this report, post-Cold War budget cuts resulted in an increased reliance on contractors. According to reports, budget cuts and plans to restructure the military in Britain will result in an increased reliance on contractors to provide operational contract support. Further budget cuts to the US military could have similar result. One question for Congress is to what extent budget cuts, the imposition of personnel caps, or a restructuring of the force will lead to an increased reliance on contractors? -pg. 12

Not only that, but if you remember the paper written by Bruce Stanley as to the relationship between the cycles of war and contractor use, it makes even more sense why we should remember these lessons so we can be prepared for future conflict.

This study argues that when political leaders choose 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.

Or how I interpret this is that a nation wants to enjoy the peace dividend when the war ends, so they cut budgets and reduce the force to make everyone happy and recover economically. But then another war happens several years down the road, and you go to war with army you have and not the one you wish you had. So we play catch up and we use contractors to fill the gaps or assist in support–which is what happened in Iraq and Afghanistan post Cold War.

Contractors are pretty vital to that game of catch up, which is of strategic importance to this nation. So yeah, learning from past mistakes and preparing for the future is something we need to do here, and bravo to Moshe and others for making that point.  –Matt

 

Operational Contract Support: Learning From The Past And Preparing For The Future, By Moshe Schwartz

Wednesday, October 31, 2012

Publications: Contractor Support Of USCENTCOM AOR, 4th Quarter FY 2012

The interesting part of this report is that there is very little change from last quarter as far as the overall numbers. In the 3rd quarter, there were 136,901 contractors overall, and in this quarter there are 137,407. So it is an increase, but by a small margin.

The other thing that jumped up at me was that contractor numbers actually increased in Iraq. In the third quarter we saw 7,336 and in this quarter we see 9,000!

We also see some numbers for the APPF force which was supposed to replace contractors in Afghanistan. The statistic that perked me up was the amount of ‘risk management consultants’–220– that was required to watch over the 2,407 APPF folks. These risk management consultants are contractors that represent the companies, and it is just funny that with all of this attention placed on the APPF being the solution, that they still need that many ‘consultants’. lol

The other interesting statistic is the Private Security numbers, or the armed contractors in both Iraq and Afghanistan. In Iraq, there is more use of security contractors from other countries other than the US. The local national use really hasn’t changed that much.

In Afghanistan, you see an increase in US private security use. In the 3rd quarter we saw 480 US security folks, and in the 4th quarter we see an increase to 2,014! Now I am going to speculate that perhaps the reason for this, is the increase in insider attacks and an increase in using Americans to guard FOB’s. The military is wanting to hand over the security of these bases so that it can save some money and use the remaining manpower for training missions or combat support for their other operations out there. –Matt

 

Contractor Support Of USCENTCOM AOR, 4th Quarter FY 2012

Saturday, September 22, 2012

Podcasts: DoD Works To Institutionalize Contracting Lessons From Iraq, Afghanistan

Outstanding little podcast and I am in 100 percent agreement. The military must not lose the lessons learned from this war when it comes to working with and using contractors. So management ‘lessons learned’ must be institutionalized and be part of the military commander’s tool box of how to fight wars. It is also nice to know that contractors are finally getting this kind of attention at that level. Check it out. –Matt

 

DoD Works To Institutionalize Contracting Lessons From Iraq, Afghanistan
9/13/2012
By Jared Serbu
DoD acquisition officials say they’re working to instill the idea throughout the department that contracting is a military commander’s responsibility. Now, Estavez said, contracting guidance for Afghanistan comes straight from Marine Corps Gen. John Allen, commander of the International Security Assistance Force.
“That’s because it’s part of his effort to win that fight in Afghanistan,” he said. “That needs to go into our military education process and our civilian education process. When our junior officers go through their paces, that has to become part of their process. They need to think, ‘When I deploy, contractors are going to be part of the process. They can help me win the fight or they can impede me. I need to manage them to help me win.’ We’ve been saying this at leadership levels, but we’re all transitory. We need to have that idea inculcated into the workforce for the future.”
Transcript here.

Listen here.

 

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