The War Profiteers - War Crimes, Kidnappings & Torture

 

March 17th, 2009 - U.S. Moves to Replace Contractors in Iraq

News article from the Washington Post

News article from the Washington Times

Summary of the Blackwater Killings

U.S. Moves to Replace Contractors in Iraq

Blackwater Losing Security Role; Other Jobs Being Converted to Public Sector

 

By Karen DeYoung

Washington Post

March 17, 2009

 

The decision not to renew Blackwater Worldwide's security contract in Iraq when it expires in early May has left the State Department scrambling to fill a protection gap for U.S. diplomats and civilian officials there.

 

Two other U.S. security contractors with a far smaller presence in Iraq - DynCorp International and Triple Canopy - have been asked to replace the ousted company, according to State Department and company officials. To meet time, training and security-clearance pressures, officials said, one or both of the firms are likely to undertake the task by rehiring some personnel now working for Blackwater.

 

The Iraqi government refused to issue Blackwater a license to perform security services after a 2007 incident in which company guards on a diplomatic protection mission shot and killed 17 civilians in Baghdad. U.S. prosecutors have indicted five of the guards on charges of manslaughter. Blackwater (which recently changed its name to Xe) still has State Department contracts for air transport in Iraq and security for U.S. diplomats in Afghanistan.

 

Meanwhile, fallout from the shootings - including a new U.S.-Iraq status-of-forces agreement that places contractors under Iraqi legal jurisdiction for the first time - has led both the Pentagon and the State Department to create new categories of "full-time, temporary" federal jobs to handle some tasks currently done by contractors.

 

The Blackwater incident helped fuel a wider debate on the overall cost and conduct of contractors. President Obama last week ordered a government-wide review of federal contracting procedures, saying that his administration "will stop outsourcing services that should be performed by the government."

 

Nowhere has that outsourcing been larger or more contentious than in Iraq, where contractors have long outnumbered the U.S. military presence, even at its peak of 160,000 troops.

 

The days of massive U.S. reconstruction contracts in Iraq are over, with little to show for tens of billions of dollars spent, according to government auditors. While the military continues to outsource much of its supply chain, contracts for services such as transport and food will diminish as combat forces begin to draw down.

 

In a commandwide directive issued Jan. 31, Gen. Ray Odierno, the U.S. commander in Iraq, ordered all military units to start cutting U.S. contractors at a target rate of 5 percent each quarter and to hire more Iraqis to do their jobs. "As we transition more responsibility and control to the government of Iraq, it's time to make this change," he added.

 

However, some contracted activities, from training Iraqi forces to strategic communications, are likely to increase as troops withdraw, and certain U.S. contractors are seen as irreplaceable. "Human terrain" experts - civilian social scientists and linguists hired to help the military better understand Iraq and Iraqis - have been told that they must accept newly created government jobs, at potentially lower salaries, or leave. The highly touted human terrain program, which fields 20 teams of five to nine specialists in Iraq and six in Afghanistan, was begun by Odierno's predecessor, Gen. David H. Petraeus.

 

Program head Steve Fondacaro said that when hazardous-duty, locality and other government pay benefits are added, total compensation will be competitive with the private sector at $147,000 to $236,000 a year. He estimated that at least 60 of about 100 currently contracted specialists would accept the year-long government jobs, with annual renewal options for up to four years, even though some have complained anonymously on blogs that the new arrangement constitutes an unacceptable pay cut.

 

Avoiding legal problems in Iraq, Fondacaro said, was more of an impetus for the move than cost-cutting. Although no U.S. contractor has been arrested under the new status-of-forces agreement, which became effective in January, he said the risks were too great in a country whose legal system is "a shambles." He is also putting the same program in place for human terrain specialists in Afghanistan.

 

"I had to take action to protect our people and protect our mission," Fondacaro said.

 

Fondacaro pointed to the Rockville-based contractor BAE Systems, which he said has informed employees that it would no longer accept liability for any legal problems they might have in Iraq and suggested they stay inside U.S. military installations at all times. "So here I am, paying exorbitant contractor wages for people whose company is not going to provide them any legal defense, and is recommending they don't go outside" to make contact with Iraqis, he said. "Which is mission failure."

 

By making the specialists into government employees, Fondacaro said, "this all goes away in one fell swoop. ... They are protected under U.S. law and have the same rights and privileges as U.S. troops," including immunity from Iraqi taxes and arrest.

 

Lucy Fitch, BAE Systems senior vice president for communications, said the "government has told us they wish to convert contractor positions in Iraq and Afghanistan to government positions" when the company's contract expires in August, but she called Fondacaro's description of company instructions "inaccurate."

 

BAE employees were advised during December and January to stay inside U.S. military installations "until we could figure out ... the legal implications and personal risk" under the new status-of-forces agreement, Fitch said. In a clarification last month, she said, employees were told that the company would "assist them in finding in-country legal representation" if they were prosecuted or sued for any reason in Iraq. If problems were related to "actions properly undertaken for BAE Systems," she added, "we will provide them counsel at the company's expense."

 

The State Department has also created new temporary government jobs in Iraq, but for a different purpose. Following the 2007 Blackwater shooting, then-Secretary of State Condoleezza Rice ordered that a federal security agent ride along on each of the contractor-protected convoys that carry U.S. diplomats, aid and other civilians - including provincial reconstruction team members based in Baghdad neighborhoods and around the country - outside their official compounds.

 

State's Bureau of Diplomatic Security not only handles security for embassies and other civilian outposts around the globe but also protects foreign officials visiting the United States. With only 1,600 highly trained special agents in the bureau, the Iraq mandate has severely stretched the service. "You'd need the entire [Diplomatic Security] workforce just to do Iraq," a senior State Department official said, "leaving nothing for Afghanistan, nothing for anywhere else in the world."

 

In postings on government job sites last month, State solicited "Protective Security Specialists," a new job category offering lower pay - $52,221 with guaranteed employment for 13 months, renewable for up to five years - and requiring less training than full-fledged agents.

 

Riding along on convoys and making sure that security contractors follow the rules, the official said, does not require "all that training and experience. … We had a lot of applicants."

 

Listed qualifications, seemingly designed for former security contractors, included "at least three years of specialized experience conducting overseas protective security operations within the last five years. Experience in Iraq, Afghanistan or Israel is particularly desirable."

 

External link: http://www.washingtonpost.com/wp-dyn/content/article/2009/03/16/AR2009031602720.html


New deal for Blackwater

 

By Jim McElhatton

Washington Times

March 17, 2009

 

Days after the Baghdad government decided it no longer wanted the company then known as Blackwater in Iraq, the State Department signed a $22.2 million deal in February to keep the embattled contractor working there through most of the summer, contract records show.

 

The decision keeps Blackwater - since renamed Xe - in Iraq months longer than anyone has suggested publicly, while raising questions about why the U.S. would pay a contractor for work in Iraq if it may not be able to operate there legally.

 

The State Department has been under pressure from Blackwater critics, including several in Congress, not to renew the company's contracts in Iraq. Much of the concern stems from a 2007 incident that left 14 Iraqi civilians dead and six former Blackwater guards facing manslaughter charges. One of the guards pleaded guilty, but the company was accused of no wrongdoing in the incident.

 

In late January, the Iraqi government said it would not renew Blackwater's operating license and that the company would have to leave as soon as a joint Iraqi-U.S. committee completes its work on guidelines for the operation of private security companies. State Department officials said they would honor the decision.

 

On Feb. 2, a department spokesman was asked whether officials planned to renew one of Blackwater's contracts past May. The spokesman, Robert Wood, said the department had told Blackwater "we did not plan to renew the company's existing task force orders for protective security details in Iraq."

 

But records available through a federal procurement database show that on that same day, the State Department approved a $22.2 million contract modification for Blackwater "security personnel" in Iraq, with a job completion date of Sept. 3, 2009.

 

"Why would you continue to use Blackwater when the Iraqi government has banned the highly controversial company and there are other choices?" asked Melanie Sloan, executive director of the nonpartisan Citizens for Responsibility and Ethics in Washington.

 

State Department spokesman Noel Clay said the contract modification involves aviation services. "The place of performance is Iraq, but it is totally different than the Baghdad one that expires in May," he said.

 

Ms. Sloan called the State Department's explanation of the Feb. 2 deal a "parsing of words" and said "they should just be straight with us."

 

Xe spokeswoman Anne Tyrell declined to comment on the status of the company's work in Iraq or the Feb. 2 contract modification. She said the company was aware that the State Department had indicated that it did not plan to renew its contracts in Iraq but that Xe officials had not received specific information about leaving the country.

 

"We're following their direction," she said.

 

The Iraqi Embassy in Washington had no comment on the Blackwater contract when contacted on Monday.

 

The State Department has given clear indications for months that the Iraqi government might not be renewing Blackwater's operating license.

 

Harold W. Geisel, the State Department's inspector general, told the congressionally mandated Commission on Wartime Contracting at a Feb. 2 hearing that officials were awaiting the outcome of an FBI report into the 2007 shooting incident before deciding whether to keep Blackwater in Iraq.

 

"The issue is not only one of, well, what we would like to do, but it also is to some extent what the department can do," Mr. Geisel said of decisions about the future of Blackwater's role in Iraq, according to a transcript of the hearing.

 

"Blackwater had certain assets that the department determined the other contractors did not have," he said, citing the company's 24 aircraft as an example.

 

Nonetheless, Mr. Geisel said his office did "advise the department that they better start planning for when the Iraqis say this is it with Blackwater. And without getting into diplomatic negotiations, I believe the department is planning for this eventuality, which is clearly not too far off."

 

Scott Amey, general counsel for the Project on Government Oversight, a nonprofit group that investigates federal contracting, said the State Department's decision to continue paying Blackwater for security in Iraq raises broader questions about federal procurement practices.

 

"This case highlights the fact that the U.S. government over-relies on contractors and that it isn't in a position to hold them accountable," he said. "Continuing to do new business with questionable actors flies in the face of spreading trust, peace and democracy around the world."

 

The contractor, based in North Carolina, recently underwent a big shake-up. The company changed its name to Xe, pronounced "zee," last month. Also, a subsidiary, Blackwater Lodge and Training Center, which secured the State Department's $22.2 million contract modification, was renamed.

 

Blackwater founder Erik Prince and company President Gary Jackson have resigned.

 

Mr. Prince has donated nearly a quarter-million dollars over the years to political causes. More than half of the donations went to the National Republican Congressional Committee and the Republican National Committee, according to a 2007 Democrat-led House committee report, citing data from the nonpartisan Center for Responsive Politics.

 

Blackwater also had spent hundreds of thousands of dollars lobbying Congress, according to Senate records. It contributed between $10,001 and $25,000 to former President Bill Clinton's charitable foundation. Mr. Clinton released the donor information last year to avoid conflict-of-interest questions about his fundraising activities and the duties of his wife, Hillary Rodham Clinton, as President Obama's secretary of state.

 

Despite any political good will that the company might have generated from its lobbying and political activities, it was unable to dodge fallout from the Sept. 16, 2007, shooting incident in Baghdad, in which prosecutors said six former guards went on an unprovoked rampage, shooting innocent Iraqi civilians.

 

Five of the former guards have pleaded not guilty to manslaughter charges, while a sixth pleaded guilty to voluntary manslaughter and attempted manslaughter. Attorneys for the former guards say they fired in self-defense.

 

External link: http://www.washingtontimes.com/news/2009/mar/17/new-deal-for-blackwater-bucks-decision-by-iraq/

Back to news & media - year 2009

Back to main archive

Back to main index