2. Setting the Scene War on Terror Afghanistan: According to CNN, 228 Deaths of American and Coalition troops in 2007 alone In 2007, Department of State (DoS) contracts ArmorGroup North America (AGNA) -subsidiary of ArmorGroup International (UK Based) - to protect US Embassy in Kabul Wackenhut
7. Poor living conditions for guards Understaffed, Empty posts Reduced Wages 14 hour days, Strikes Use of non-English speaking Gurkha guards (Nepalese) to maximize profit Guards without clearances or with prior records of criminal activity Purchasing of counterfeit goods from Logistics Manager’s wife Mission Snack Pack
8. It Takes Two… State Department equally liable by letting conduct continue without effective action After issuing Cure Notice highlighting 14 non-compliance issues, and a Show Cure, threatening termination because of guard shortage (POGO), DoS still renews in 2009 contract despite of 2 years of complaints
9. Senate Committee on Homeland Security & Governmental Affairs Investigation Sub Committee on Contract Oversight Hearing – June 2009 Chairwoman - Senator Claire McCaskill Testimonies from DoS, William Moser – Deputy Assistant Secretary for Logistics Management, and Wackenhut, Samuel Brinkley- VP of Homeland and International Security Services Systematic pattern of empty posts
10. Commission on Wartime Contracting Independent, Bipartisan 8 Member Commission to study compliance issues in war time contracts, specifically in Iraq and Afghanistan Mandated by Congress Authorized to hold hearings and forward violations to Attorney General September 2009 – Commission Hearing - Testimonies from DoS (Amb. Patrick Kennedy), POGO (Danielle Brian), Whistleblower (Terry Pearson), Wackenhut (Samuel Brinkley), et al.
11. Questions in Bidding Process Should the Government award security contracts to the lowest bidder for war zones? - ArmorGroup underbid to win the contract - Contractor could be grade ‘A’ and little more expensive but because second contractor with grade ‘C’ is cheaper, DoS required to hire second because they both passed minimum standards Should Contractors be allowed to provide Security services in war zones at all? Private-Military co-management option? -Blackwater Incident -ArmorGroup Scandal -Low morale -Profit > Security culture -Effect on Local population
16. Aftermath AGNA settles with Whistleblowers for unlawful termination 14 security guards and Logistics Manager fired for misconduct Replacement of AGNA management staff DoS prohibits Alcohol consumption – “guns and alcohol don’t mix” (CWC) 2010 - AGNA’s contract terminated by DoS July 2011 – AGNA pays $7.5 M settlement (CBS) Final Commission Report – Expected July 2011
17. What’s Next for State? DoS to contract 5,405 projects ($15B) for DoD transfer in Iraq; Diplomatic Security to hire extra 200 personnel to oversee contractors (CWC) June 2011 Commission on Wartime Contracting Hearing -Recommendation IG to examine DoS, DoD, and USAID “It is a long road; it is a marathon. I mean, I think we have already crested heartbreak hill, and we have only so far to go. The time remains is short. Anything can go wrong. And I am sure that something will go wrong.” – Amb. Patrick Kennedy, June 2011 CWC Hearing
