Feral Jundi

Friday, November 12, 2010

Maritime Security: Somali Piracy Getting Worse Despite The Efforts Of Worldwide Navies

     Man, this is not a very good report card about the effectiveness of the current strategy. It also shows to me that the pirates are getting better at what they are doing, and they are also increasing their reach.

     Not to mention the scalability of the whole thing. If an operation costs $ 30,000, and a pirate has fetched millions of dollars in ransom in the past, then with each ransom, they can dramatically scale up the amount of operations. This increases the odds of success. The numbers below speak for themselves.

     Now on to the solutions. There are two things that have to happen that the world community just does not have the will to do, or the spine to promote, in order to stop this. They have to effectively deal with the problems in Somalia on land, and shipping must have a viable means to protect itself on the high seas. In my book, ‘viable means’ is defined as armed security on every boat.

     Along with those armed security professionals, must also come the legal mechanism necessary to allow this force to do what it needs to do.  Here on the blog I continue to promote how countries could provide such a legal mechanism through the granting of the Letter of Marque (LoM). I have also posted numerous legal treatments on the subject here on the blog with the hopes that folks will start thinking about the concept.

     The other area of interest for me is that as pirates become more asset rich, the possibilities of seizing their assets on the high seas or somehow taking what they stole, increases. With a LoM system right now, there is nothing of value that the pirates have because they have such low operating costs.  So the LoM would only serve as a legal framework for PSC’s to protect vessels.

     But as ship owners continue to pay ransoms and pirates begin to upgrade to more valuable ships and hardware, I could see a day where a privateer might benefit from the seizure of a prize like this.

     A privateer might also be able to benefit by retrieving that ransom money somehow. Either on the high seas right after the exchange, or if they were able to get on land and take it from the pirate. My thoughts on the matter is that if there is any mechanism at all for allowing companies to legally take from the pirates, then now you would have a competitive strategy to counter the current piracy business model. Pirates profit by taking from the weak, and privateers would profit by taking from the pirates.

     I estimate that a system such as this would eradicate piracy pretty effectively. Just think of the size and scope of such a thing? The entire world and all of it’s private naval industries, armed with licenses to take from pirates, versus a few hundred Somali pirates off the coast of Africa or where ever they want to exist. Out of that process we would see some really innovative and effective pirate hunters, and that is the kind of thing that would put the fear of god into these thugs. I would imagine that some of the best pirate hunters, would be former Somali pirates themselves. Or who knows who would rise to the top in such an environment?

     And if a value was assigned to Somali pirates in the form of bounties, then that would really create the profit motive needed to fuel such an anti-pirate industry. Call it a clash of industries or privateers versus pirates. And get this, today’s shipping companies are creating an asset rich pirate by continuing to pay these ransoms. Until then though, an LoM would probably be most effective as a legal mechanism used to help defend private shipping. –Matt

Somalia Pirates’ Success Rate Rises, Stunting East Africa Economies

By Bill Varner

Nov 2, 2010

The international naval presence off the coast of Somalia is failing to reduce the success rate of pirates whose attacks on commercial ships are stunting the economies of East Africa, the United Nations said.

UN Secretary-General Ban Ki-moon reported to the Security Council that 37 of 164 attacks on ships operating off the coast of Somalia succeeded in the first nine months of this year. That 22.6 percent rate of successful hijackings compares with 17.1 percent, of 193 attempts, for the same period in 2009.

“Piracy in the region has had an immense impact on the economies of East Africa and also the wider world,” Ban said in his report. “International trade routes are threatened and goods in the region as well as Somalia are becoming more expensive. This is made worst by the bleak state of the global economy.”

The pirates concentrate on the Gulf of Aden, a chokepoint leading to the Suez Canal that is used by 30,000 ships a year carrying about one-tenth of world trade. Attacks have spread to the Indian Ocean, as much as 1,000 miles from shore.

The rate of successful hijackings increased even with the presence of warships from the European Union, North Atlantic Treaty Organization and 25 other nations including the U.S., China, India, Iran and Japan. Commercial ships are using defensive measures such as netting, wire, electric fences and fire hoses to prevent boarding.

More Sophisticated Weapons

Ban said the pirates have countered with more sophisticated weaponry and use of “action groups” consisting of a large command boat towing attack skiffs.

“I am afraid that the problem will not only be with us for a long time to come, but also has the potential to become worse unless both Somalis and the international community address its root causes,” Ban said. “There is an urgent need to combine vital sea-based and judicial counter-piracy initiatives.”

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Monday, November 1, 2010

Publications: Journal Of International Peace Operations, November-December 2010

Job Tips: Navigating The FBO And Learning About Security Contracts OCONUS And CONUS

Vendor: Are individual guard weapons truly required to be fully automatic, as semi-auto weapons are shown to be safer and increase accuracy? 

Contracting Officer: YES, FULLY AUTO

-From a question on one of the solicitations from the FBO. 

     This is cool. I have been playing around with the FBO search features and figured out a way to identify all the armed security related solicitations that have come out over the last year, for Iraq and Afghanistan. This is how you can find out what is coming up for contracts, and who has won what. It is also a way to put rumors to rest and refer to a source that you can depend upon for clarification.

     For those contractors and businesses that are interested in tracking FBO, just use these NAICS codes ‘561612 — Security Guards and Patrol Services’ and ‘561613 — Armored Car Services‘ in the Advanced Search feature of the site. Then play around with locations and see what pops up. I have already searched Europe, Asia, South America, etc., and lots of interesting things pop up.

     What was really intriguing to me was to see how many documents came out this last year, both in the US and abroad in regards to the search input of security guards, patrol services, and armored car services. 328 pages of solicitations came up! That is remarkable and it sure doesn’t sound like the government is shying away from contracting security. If anything, that just shows how dependent the government really is on private industry to provide these services.

     Also, if you click on any of the Afghanistan solicitations below, you will find the questions and answers section under synopsis. This is where vendors ask the contracting officer about the particulars of the solicitation. This is very interesting to me, because a lot of the questioning revolves around Crazy Karzai’s decree and how it will impact these contracts.

     Along with these clarifications, might I also point out that two awards just came out in regards to armed security contracts in Afghanistan. There were also some solicitations that were cancelled, and probably because of the latest crap going on in Afghanistan. Maybe not, and I am not privy to the particulars of these contracts and the deciding factors.

     Either way, please check out the links below because you can learn a lot about these armed security contracts overseas. I also need more folks checking this stuff out so they can pick up on any little details that are of interest that is being missed by the industry or public discourse. The FBO is a wealth of information, and if you are a small business owner or independent contractor trying to get into the game, it is vital that you track and understand what is coming out on FBO so you can ‘be prepared’ and ‘know your stuff’. –Matt

Facility Protective Services

W91B4M-10-R-0037

99 — Miscellaneous

Department of the Army

CENTCOM – Joint Theater Support Contracting Command

KABUL RCC Award Oct 31, 2010

Facility Protective Services

W91B4M-10-R-0025

99 — Miscellaneous

Department of the Army

CENTCOM – Joint Theater Support Contracting Command

KABUL RCC Award Oct 31, 2010

ASG SERVICES, COP NAJIL

W91B4K-11-R-0002

R — Professional, administrative, and management support services

Department of the Army

Joint Contracting Command, Iraq/Afgahnistan

FENTY RCC (JALALABAD) Combined Synopsis/Solicitation / Cancelled Oct 25, 2010

ASG SERVICES, FOB SHINWAR

W91B4K-10-R-2129

R — Professional, administrative, and management support services

Department of the Army

Joint Contracting Command, Iraq/Afgahnistan

FENTY RCC (JALALABAD) Combined Synopsis/Solicitation / Cancelled Oct 19, 2010

(more…)

Sunday, October 31, 2010

Industry Talk: AGNA Report News–Sloppy Reporting And Range Violations By The IG In Afghanistan

     A senior level review of the misconduct allegations against AGNA personnel, combined with AGNA’s history of contract compliance de?ciencies, led DS, AQM, and Embassy Kabul to conclude that it was in the best interests of the Government to compete a new contract. In light of recent legislation, the KESF contract has been combined with the Baghdad Embassy Security Force and Worldwide Personal Protective Services II (WPPS II) contracts into one base Worldwide Protective Services (WPS) contract.  The new WPS contract is a multi-award, inde?nite delivery, inde?nite quantity (IDIQ) contract that will be awarded on a best value basis. Individual requirements, such as the KESF, will be awarded as task orders under the base WPS contract. The current KESF contract with AGNA expired on June 30, 2010, but performance has been extended until the end of December 2010 to allow for the completion of the acquisition process for the new WPS contract and KESF task order and to provide for an orderly transition to the next provider. -From the Bureau of DS Comments in Report 

     What I wanted to do here is give the former contractors and managers of Armorgroup North America a chance to voice their opinion of the latest report. My inbox is filled with numerous emails from former employees and managers of AGNA, all wanting to tell their side of story. Partly because Congress, State or the IG really could care less about the little guy on the ground, and partly because the report is sloppy. So call this a rebuttal from the little guy.

     This particular email was from a former manager at AGNA, whose identity I will refer to as ‘former manager’. I would hope that this would have some significance to those that are reading this, and that what he has to say pretty much conflicts with what the IG is reporting. Specifically that the weapons issue pointed out in the report was lacking some key points, and that the IG violated the range rules during their inspection.

     I might also add that there is nothing in the report that discusses how AGNA came to be contracted in the first place. The Commission on Wartime Contracting came out with an excellent and damning report about how Lowest Priced, Technically Acceptable contracting is what created the environment that forced State to contract with the lowest bidder.

     It is also interesting to me that Danielle Brian of POGO still asserts that LPTA is a legitimate contracting mechanism for security contracting in war zones, when there has been several reports presented that have identified the horrific secondary affects of this type of contracting in war-zones.

     Best Value contracting would have given State more choice and flexibility in the matter, and they could have gone with the best company for the job and not with the cheapest or technically acceptable. It would not have been a race to the bottom, but a race to the best value company for the job.

    Furthermore, why is POGO so silent about the TWISS program, another example of the failure of LPTA? (did I mention that companies are now considering Sierra Leone contractors as guards because they are cheaper than Ugandans?) I know POGO reads the blog and I have directed everyone that has complained to me, to go to POGO and voice their concern. I would like to think that POGO would actually listen to what the guys on the ground have to say about such things?

     Or why is the Army using LPTA for FOB security in Afghanistan, when the CWC is so opposed to it? I posted a ton of contracts flying that were all LPTA, and here we are trying to convince Karzai to not ban PSC companies. With LPTA, we are giving him more ammunition by putting our lowest bidders, ‘junior varsity squads’ out there. Pffft.

     The other thing that pisses me off about LPTA, is that the troops see the direct result of this on the FOBs. How would you feel if you were being protected by the lowest bidder? It is a simple question, that pisses off most when they come to the conclusion that they don’t like it. Especially if their base has been attacked, like what has happened frequently in Afghanistan.

     LPTA doesn’t work for picking a doctor to cure your sick mother, and it doesn’t work for picking a company to protect your people in a war zone. LPTA is great for picking a company to rake your leaves though. lol You get what you pay for, and that is the lesson I got out of the reports.

    Thats not to say that State or AGNA doesn’t share any fault here, but Congress must take more blame, and all because they insisted on lowballing the security for Embassy protection in the first place.

    Finally, this post is about the guys on the ground who were contracted to operate in this environment. They are the ones that take on the task of trying to make this mess work. No one signs on to a contract to do bad. They sign on so they can be employed and pay their bills/feed their family at home. They sign on because they care about participating in the war. They are also sacrificing by being away from family, or facing death and injury in war-zones–and all for their country and for the war effort. We should support them, not hate them.

     Most guys whom have done the contracting thing for awhile have also worked for numerous companies. A contractor could have worked for Xe, Custer Battles, Erinys, Aegis, AGNA etc., and that is not abnormal nor does that mean the contractor is a bad guy. They are going where the work is so they can continue to earn a living and serve in the war. I am sure when EODT takes over this contract in Kabul, AGNA guys will be ‘switching t-shirts’ and transition under the management of this new company.

     I want to make sure that Congress, State, AGNA, and now EODT knows that these men need leaders who can manage a ‘properly funded, staffed, and equipped’ contract at all levels. These men are not the bad guys, and they deserve the best management we can give them.

     This work force will move mountains for you, if you actually apply a little Jundism to your management principles as well. Know your stuff, have the courage to do what is right, and take care of your people. Trust, but verify. Lead by example. Lead from the front. Your people will support what they help to create. Obtain feedback gold. Create a learning organization and gain a shared reality. Continuous improvement and customer service and satisfaction. Have fun.  All of this stuff is important, and all of it should be geared towards results and getting the job done. –Matt

 

From Former Manager at AGNA

     “Sorry I cannot be more forthcoming with dates and witnesses, most have left. A number of the team in Kabul are upset as great progress has been made and this is rarely acknowledged, we just get the old issues regurgitated and inaccurate reporting. No organisation, or individual, is perfect and mistakes will be made, but, this report is poor and has an impact on individuals and corporations. How can organizations be expected to work with the IG if they produce sloppy reports, it is counter productive. Instead of working on ways to improve the contracting process and performance; it erodes it – people do not put things in writing, everyone tries to cover their backs all the time, every decision takes a long time/ or make poor ones, as people try to assess what an inspector or congressman (who has to be re-elected every two years) might say three years from now and with 20/20 hindsight.”

From IG Report In Regards To The Firing Range

      AGNA does not adequately maintain training records. AGNA firearms instructors failed to sufficiently instruct guards to help correct firing errors. Instructors also qualified guards who did not achieve the minimum qualifying score at the firing range.

From Former Manager at AGNA

     “There are other areas that need to be looked at – such as the statement that AGNA fails to conduct weapon training properly – how can they make this a key finding from a visit to one range? The same range the inspector is removed from the firing line by a former ranger chief instructor for moving in front of the firing line. The same inspector who, in front of the project manager, grabbed an M4 from a guard to check the serial number, not checking the weapon status/ clearing it and muzzle sweeping personnel in the process – we would be disciplined for handling a weapon in this way. How can they say AGNA put guards on post who failed the weapons qual, without checking the source documentation? (which they found difficult to navigate but did not ask the training staff to assist them in finding). Have you looked at the equation they used with regard to rifle quals? It makes no sense to me and I believe the two personnel they say failed actually had passed if you looked at the source document, not the spreadsheet where results are collated. They say guards were on post for 8 months without training, yet they interviewed some of these guards, I would imagine that they should have asked them if they had undergone training and when? If they were trained prior to standing post (which they were) then it is an issue of maintenance of records, which is still a problem to be highlighted and resolved, but does not effect the security of the Embassy.”

From IG Report In Regards To Weapons

     AGNA’s current control of U.S. Government-furnished property is generally satisfactory, but AGNA cannot account for 101 U.S. Government-furnished weapons that have been missing since 2007. Additionally, from July 2007 until September 2009, AGNA used U.S. Government-furnished weapons to train guards when contractor-furnished weapons were required by its contract. OIG calculates that AGNA’s loss and misuse of these U.S. Government-furnished weapons cost the government $431,000.

*****

     OIG found that AGNA cannot account for 101 U.S. Government-furnished assault ri?es of a lot of 116 that was to be returned to the U.S. Government in July 2007 under a contract modi?cation. OIG found one missing assault ri?e of this lot under a desk in an AGNA of?ce. The photo on the right in Figure 3 shows the assault ri?e as found under the desk. DS was able to locate an addition 14 weapons that had been transferred to other State Department of?ces and US Government agencies. Neither AGNA nor DS could provide documentation verifying the return or location of the remaining 101 assault ri?es. OIG calculates this assault ri?e lot is worth approximately $50,000.

     According to correspondence between the Department and AGNA management, from July 2007 until September 2009, AGNA did not provide a suf?cient number of contractor-furnished weapons to the KESF guards. Instead, AGNA used U.S. Government-furnished weapons for training, although the contract required contractor-furnished weapons (U.S. Government-furnished weapons are to be used for guard duty). AGNA and the Department negotiated a ?nancial settlement in which AGNA was to reimburse the U.S. Government $381,000 for the use of these weapons. However, OIG reviewed invoices and found that AGNA has not yet reimbursed the Department. DS of? cials con?rmed that AGNA has yet to reimburse the Department.

From Former Manager at AGNA

     “The original contract and mod 1 contained 116 soviet block weapons that were used on the previous contract, before the Govt supplied US weapons. As these weapons were not going to be used on the program DoS moved them to their own storage unit prior to 1 July 2007 (when AGNA took responsibility for the contract). Consequently these weapons were never part of the equipment handover and AGNA did not sign for them on handover. Because of this the contract was modified in mid July 2007 reflecting this. How can AGNA provide handover documentation for items they were never responsible for? It seems as if the IG assumed AGNA was responsible because the contract mod was mid July, but that is a poor assumption, and the IG was informed of the situation by DS.”

     “From what I understand DoS then gave AGNA some of the weapons (7 or so) to use for identification training (they were generally kept on the training/ briefing room in full view), but they were demilitarized (welded bolt, soldered and bent barrel etc). One of these weapons is the one seen in the photograph in the report. Other weapons were sent to the US for use at DS facilites and the rest were disposed of, although I do not know how. Most of the people involved in this are DoS personnel who oversaw the program handover. Those from AGNA have since left the company. However, with all the scrutiny on this program you would think that DoS would have mentioned AGNA ‘losing’ 100+ weapons before now…”

Comments from the Bureau of Diplomatic Security in Report

     A senior level review of the misconduct allegations against AGNA personnel, combined with AGNA’s history of contract compliance de?ciencies, led DS, AQM, and Embassy Kabul to conclude that it was in the best interests of the Government to compete a new contract. In light of recent legislation, the KESF contract has been combined with the Baghdad Embassy Security Force and Worldwide Personal Protective Services II (WPPS II) contracts into one base Worldwide Protective Services (WPS) contract.  The new WPS contract is a multi-award, inde?nite delivery, inde?nite quantity (IDIQ) contract that will be awarded on a best value basis. Individual requirements, such as the KESF, will be awarded as task orders under the base WPS contract. The current KESF contract with AGNA expired on June 30, 2010, but performance has been extended until the end of December 2010 to allow for the completion of the acquisition process for the new WPS contract and KESF task order and to provide for an orderly transition to the next provider.

Link to report here.

Thursday, October 28, 2010

Industry Talk: Russia Eyes Security Firms To Defend Assets Abroad

     Amid the global economic crisis, the security guard industry remains a haven for those Russians not afraid of danger or boredom.

     The Russian private security business has seen a number of cuts and layoffs in the last year. However, the workforce still accounts for up to 750,000 guards, making it one of the biggest in the country.

     Aleksandr Mikhin, a spokesperson for a Moscow-based Alligator Security Company, which has been in business for 16 years, says companies have started reconsidering their contracts with security firms, trying to optimize their spending.

     But security is usually the last thing businesses are ready to sacrifice. And in an economy such as this, increased concern about crime, vandalism and terrorism is forecast to raise the need for security. 

     Adil Mukashev, an independent expert on terrorism issues based in Almaty, Kazakhstan, said the security firms will likely employ ex-military from Russia’s mainly Muslim North Caucasus region, where an Islamist insurgency is raging.

“This will kill two birds with one stone — give men work in a region with high unemployment and drive them away from radical Islam,” Mukashev told Reuters.

    An interesting little side fact is that I get a lot of readers from Russia checking out the blog. With over 750,000 guards in Russia, now I know why! lol But what is really interesting is the idea of exporting this pool of guards to protect Russian assets abroad. This is the territory I like to explore.

     The article only mentioned oil and mineral assets abroad, but there are other areas that would be of Russia’s best interest to take part in. Specifically, if they plan on allowing NATO to use their railways to transport weapons and whatnot. This will make railways a bigger target for terrorists, and increased traffic will increase exposure. Especially in Northern Afghanistan, because the Taliban and company will do all they can to attack that railway or to steal from it. For investors to trust these lines, there must be adequate security for them.

     Private security firms also allow Russia to participate in Afghanistan, and yet not appear to be involved militarily with it’s own troops. So if they want to help NATO and get some sweet deals in return (dealing with Georgia, etc.), as well as not get sucked in militarily into Afghanistan, they could easily assist via private military firms. Trainers for all types of things, like police or military, or even the pilots of all these Mi-17’s that Afghanistan is buying, could all be drawn from private firms.

     Add to that the legions of Afghan war veterans that Russia has who could be called upon for these contracts. That’s if Russian parliament says it’s cool? The money is what will be doing the talking here, as well as the security situation and unemployment realities of that country. All I know is NATO seems to be pretty interested in including Russia into the Afghan game.

    There is also the maritime security industry, and I am sure Russia would be eyeing ways to protect their shipping assets privately as well. These companies could also offer their services elsewhere, if legally allowed to do so by Russia.

     I am also interested in the other quote up top about using this as a means of employing out of work folks and keeping them away from Jihad? Would sending them to Iraq to defend a company like LUKOIL be a good thing or a bad thing for a muslim from the Northern Caucasus? –Matt

Russia eyes security firms to defend assets abroad

Russia to continue supplying Afghan army and police

Hold it right there

Russia eyes security firms to defend assets abroad

October 28, 2010

* Russia wants private security for assets in conflict zones

* Ex-military personnel could be from volatile N. Caucasus

By Amie Ferris-Rotman

Russia is preparing legislation to set up private security firms using ex-soldiers and police to protect its oil, gas and mineral holdings in conflict zones abroad, a lawmaker and ex-KGB officer said in an interview.

Up to 1,000 security personnel would operate along the lines of U.S. and British private security firms, said Gennady Gudkov, a deputy in Russia’s lower house of parliament, known as the Duma.

“It will be expensive but unfortunately it is very necessary,” said Gudkov, an influential member of the pro-Kremlin Fair Russia party and a former KGB officer who sits on parliament’s safety committee.

“As long as Russian firms are operating abroad, this is in the interest of the state,” he told Reuters, referring to Russia’s need to protect strategically important companies.

(more…)

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