TOPICS
TOPICS
Protests could put brakes on new Iraq logistics contract
Faced with the prospect of missing out on the Army's most lucrative logistics contract in Iraq, a pair of teams of defense contractors is challenging the service's decision to award the work to three rival companies.
Last week, Contingency Management Group LLC, a team composed of AECOM Government Services, Shaw Group and PAE Government Services, filed a protest with the Government Accountability Office, claiming that the Army's Sustainment Command improperly evaluated the group's proposal for the Logistics Civil Augmentation Program (LOGCAP) IV contract. The team is seeking a stay of the new contract until GAO can review the July 11 protest.
Two days later, IAP Worldwide Services Inc., a Cape Canaveral, Fla., contractor, filed its own protest, also citing improper technical or price evaluations, according to Michael Golden, GAO's chief procurement attorney. IAP led a team of contractors that included industry giants Lockheed Martin, CACI and Blackwater. Officials with Contingency Management Group and IAP both declined to discuss the reasons for the protest.
The Army awarded its mammoth 10-year LOGCAP IV contract last month to three firms: the incumbent contractor, Kellogg, Brown and Root Services of Houston; former contract holder DynCorp International LLC of Fort Worth, Texas; and Fluor Intercontinental Inc. of Greenville, S.C. The three companies are each capped at $5 billion per year, although the Army does not expect the firms to reach the maximum value in any given year.
A fourth contractor, Serco Inc. of Vienna, Va., was awarded a $225 million support contract last February. The Army says Serco will assist in its planning and provide independent cost estimates, but will not play any oversight role or conduct any inherently governmental work.
In an e-mailed statement, KBR deferred questions about the protests to the Army, stating only that the company is "proud to have been chosen as one of three logistics support providers under the LOGCAP IV contract. We look forward to continuing our service to the U.S. forces deployed in the Middle East."
The three prime contractors will compete to deliver fuel, water and food, as well as field operations such as postal services, laundry and sanitation, to troops stationed in Iraq and Afghanistan. The indefinite quantity/indefinite delivery contract has a one-year base with nine option years and could be worth as much as $150 billion.
The use of multiple contractors is a departure from the sole-source strategy the Army has employed since the first LOGCAP contract was awarded in 1992. The change is "designed to enhance competition and reduce overall risk," said Daniel Carlson, a spokesman for the Army.
Previous incarnations of the logistics contract relied primarily on cost-plus task orders in which the Army and the contractor negotiated a price based on an estimate and adjusted the cost as needed. The government then paid the contractor a base reimbursement fee -- typically 1 percent -- on every task order and an additional 2 percent award fee if the work was done efficiently and honestly.
But watchdogs say the contract has been prone to abuse. KBR, which until recently was a subsidiary of Halliburton, was roundly criticized for its work on the 2001 LOGCAP III contract. Reports by GAO, the Defense Department inspector general and the Defense Contract Audit Agency found KBR overbilled the government for fuel and failed to justify $1.8 billion worth of work in Iraq and Kuwait.
And just days after the Army awarded the LOGCAP IV contract, the Special Inspector General for Iraq Reconstruction released a report alleging that KBR provided its employees with better housing than U.S. soldiers, overspent on food by $4.5 million and failed to provide accurate measurements of the fuel services it provided. KBR is in the process of reviewing the report, company spokeswoman Heather Browne said.
DynCorp, meanwhile, has been rapped for providing vague invoices on a State Department contract in Iraq, while Fluor was heavily criticized for its work on a temporary housing contract for Gulf Coast residents in the wake of Hurricane Katrina.
The Army plans to begin using its new LOGCAP IV contract in October, although the protests could delay its implementation. KBR's current LOGCAP contract expires in December, but the Army could exercise an option and extend it if needed.
COMMENTS
- LED, what dream world are you living in. Eastern Europeans aren't exactly known for their social skills or customer service skills. Actually what they are known for is how poor they are at both of those. In Iraq former Yugoslavians got replaced in any customer service position that had to deal with the US military because of their poor customer service skills. I should also mention that I believe ALL contractors and equipment on a US military base should be made in America - no Turk subcontractors, no Mercedes trucks and NO TCN's. LN's are better then TCN's if they can pass security. And who's the wacko that thinks KBR has a record of high performance? Come on where do I start....how about starting with the dead electrocuted US soldiers and hiring anyone with a pulse for LOGCAP III. Obviously you’ve never been in Iraq or Afghanistan, if you have you are suffering from some serious delusions. David ex KBR Posted June 12, 2009 5:18 PM
- The information about the Bosnian is mixed I have met a lot of people from that area, but for the most part they are rude. They do not like american they do not try to learn English and for Food Service they are NASTY........I have told my supervisor of the Defac that I work at in Afghanistan and he does not care he is African American and but the Americans on the back burner we work hard we know have the skills we take care of the Soliders and everyone with respect. There is one where I work that has pulled a Knife on an American and nothing happen to her. If we (the Americans) are late we catch it if we need help we dont get it . When you talk about sexual favors they are the best at it and get promoted quick, and we the american have a lot of skills when we go over we have to take sometimes what we can get just to get over there and hope to move up and it is hard. KBR offers not days off and funny with your sick time what is why they want the people from Eastern Europe because they do favors for things they need and Americans will pull out the book and let them know what they are entitled to per KBR policies and there is no sex involed. Boue Posted December 2, 2008 12:21 PM
- Couldn't resist writing a comment, and very gladding that someone such as Milton Manaki is honestly expressed him in words he wrote against Bosnia. For his information and all of them didn't know, Bosnia has a Army contingent as part of coalition which proves our dedication in Operation of Iraq Freedom and our willing to help US Army as well. So this is our mission too. Macedonians are nothing but jealous chauvinist cowards. No more comments and come and post the when you get competent to do so. Term TCN has economy meaning which EUROPE has nothing to do with and Bosnia is European Country, so every treating of Bosnians as TCN is discrimination. Why most of the Americans hates Bosnians when it comes to the work and KBR. I'll tell you why. In the morning, we come to the work and say "Good morning to everybody" even we know that most of the American co-workers don't reply Next thing is review of Business mail while American co-workers check and write their personal emails and laughing as crazy without sharing fun. Phone calls are available to make 4 hours after the last American co-worker finish talking to his family. Due the client service we hang up the phone, get up the chair and say "How can we help you?" unless some High ranking client looking for a blank Form, then American co-workers stand up fighting each other to win and help the Boss. We go to lunch 11:00 and get back to work 11:30 while American co-workers are still in DFAC where talking to the incoming buddy ends up waiting so they together go to the PX. We continue to work while American co-workers are still in PX or they took a nap in their rooms. We work 12.5 hours and write 12 hours in timesheet (lunch time is not included in work time) while American co-workers work 12 (including 2 hours of personal phone calls, 2 hours of personal emails, 2 hour of lunch, 2 hours of nap, 2 hours of dinner and 2 hours of talking nonsense, and write 12 hours in timesheet. We leave the office with Good night to everyone even no reply come to us from American co-workers And on the end WE ARE HERE TO MAKE MONEY ONLY FOR OURSELVES. We are sick and tired of parasites expecting the Bosnians react and do every task ordered. If this has no sense, Recruiters would never get back to Bosnia for recruiting events. L.E.D Posted April 6, 2008 10:22 AM
