Category Archives: Follow the Money

U.S. Embassy Kabul Construction Bulge: From $625M to $773M, Est. Completion Now Moved to 2016

– Domani Spero

 

The Government Accountability Office (GAO) recently evaluated the construction of U.S. Embassy Kabul due to “broad congressional interest” in the oversight and accountability of U.S. funds used in Afghanistan. The GAO wanted to see what contracts State put in place to construct new U.S. embassy facilities in Kabul starting in 2009; the extent to which construction requirements, cost, or schedule have changed, and the reasons for the changes; and the extent to which the present expansion matches projected needs.

The GAO reports that contract costs for construction have increased by nearly 24 percent, from $625.4 million to $773.9 million as of May 2014.  The original construction completion was to be the end of  summer 2014; the contractual delivery date for all permanent facilities is now anticipated for July 2016.

With the withdrawal of U.S. troops in the horizon, SIGAR recently said that “constraint on oversight of US-funded Afghan reconstruction will only worsen as more US coalition bases close” and that the “ability to monitor, manage & oversee reconstruction programs in Afghanistan will only become more difficult.”

And yet, Embassy Kabul’s permanent facilities—both older and newly-constructed office and apartment buildings—will eventually contain 1,487 desks and 819 beds.  The projected embassy staffing for 2015 is approximately 600 U.S. direct hires and 1,100 locally employed staff.  Without the military support, State would once more end up with potentially contracting its own security and life-support contractors as it did in Iraq.

Excerpt from the GAO report:

From 2002 through 2009, State took several actions to expand the U.S. embassy compound in Kabul. Initially, OBO refurbished the existing office building, built in the 1960s. Additionally, OBO completed the construction of a new chancery office building, staff apartments, and support facilities. As staffing increases continued, the embassy acquired hundreds of shipping containers for temporary offices and housing. The embassy also compressed office space by putting more desks in the new chancery and old existing office building. Today the Kabul embassy compound consists of the original compound on the west side of Great Massoud Road, referred to as the West Compound, and an expansion compound on the east side of Great Massoud Road, referred to as the East Compound.
[...]

Since the two contracts were awarded in 2009 and 2010, construction requirements have changed, costs have increased, and schedules have been extended. OBO’s original construction requirements have changed. In December 2009, OBO added two stories to planned office annex A. In September 2011, after the U.S. and Afghan governments did not reach agreement to transfer the Afghan Ministry of Public Health site to the U.S. government, OBO removed the parking facilities from Contractor 2’s contract. The embassy also requested that OBO reconfigure the existing office building’s second floor. In March 2012 and September 2013, new security upgrades to perimeter walls and guard towers were added. Because of the building alterations, OBO is building space for more desks and beds than originally planned. The new office annexes under construction are to contain 1,237 desks, a nearly 60 percent increase over the 778 desks originally planned. OBO is also building space for 661 beds, about 50 more than originally planned. 

Contract costs for construction have increased by nearly 24 percent, from $625.4 million to $773.9 million as of May 2014. (See table 1 on page 20 of the enclosure.) This $148.5 million cost increase is the result of multiple contract modifications to change construction requirements, including the transfer of construction requirements from the 1st contract to the 2nd contract.1 

The overall project schedule has also been extended. OBO had originally planned to complete all construction on the compound by the end of summer 2014; the contractual delivery date for all permanent facilities is currently July 2016. 
[...]

Factors affecting the project include: 

    • Increases in numbers and changes in composition of embassy staffing requirements. 
    • Risks introduced by State during planning, such as awarding contracts before the Afghan Ministry of Public Health site was fully acquired and tightly sequencing the work of two contractors on one construction site. 
    • Constructing new facilities on an occupied compound in a conflict environment. 
    • Contractor performance delays and transfer of construction requirements from one contract to another. 
    • Delays and changes to shipping routes of building materials due to difficulties with shipments transiting through Pakistan. 
Via GAO

Via GAO

We’ve seen this before, haven’t we?

It is difficult to determine whether current projects and existing facilities will meet future embassy needs. Long-term construction has been occurring in an unpredictable political and security environment characterized by dramatic changes in U.S. staff levels. Additionally, as the U.S. military draws down its presence in Afghanistan, State will have to decide whether to close its facilities in the field or engage support contractors to replace life-support services currently provided by the military, such as food, water, fuel, and medical services. Such changes may affect embassy staffing and operations. Future composition of U.S. agencies, staffing levels, and embassy facility needs continue to be subject to change.

Once current contracts are completed, the Kabul embassy’s permanent facilities—both older and newly-constructed office and apartment buildings—are to contain 1,487 desks and 819 beds. These totals do not include any desks or beds within temporary offices and housing that State expects to demolish. Furthermore, the desk totals assume that compressed office areas in currently crowded office buildings will be alleviated as some staff move out of those areas and into the newly completed office annexes. 

Projected embassy staffing for 2015 is approximately 600 U.S. direct hires and 1,100 locally employed staff. State is working to identify its and other agencies’ desk positions (both U.S. direct hires and locally employed staff) that will occupy the new office space. State is also examining how to accommodate new support contractors—either on or off compound—that may be used to provide needed services after the U.S. military departs Afghanistan. 

State is conducting a master planning study, due in August 2014, to address on-compound facility needs unmet by current construction. That plan may address parking facilities that were removed from the current construction project. State is also considering the continued use of various leased off-compound facilities in the future.

 

Read the full report here (pdf).

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USAID Afghanistan — SIGAR, OIG Investigates Second Largest Recipient of Reconstruction Funds

– Domani Spero  

Via SIGAR — Snapshot of Top Ten Recipients of USAID Funds in Afghanistan Reconstruction (2002-2013):

Our analysis of USAID data indicated that the top ten implementing partners in total awards accounted for about $7.7 billion, or 58 percent of total obligations. The remaining 42 percent of obligations were awarded to a total of 193 implementers who averaged $29 million in total awards. The World Bank was the top overall recipient of USAID funds in Afghanistan, with total awards equal to approximately $1.75 billion. USAID provided $1.74 billion to the Afghanistan Reconstruction Trust Fund (ARTF), which is administered by the World Bank, and awarded the Bank a $2 million grant for a project supporting business environment reform in Afghanistan. International Relief and Development, Inc. (IRD) received the second highest amount of total rewards at approximately $1.1 billion. Table 2 shows the top ten recipients by total obligation as reported by USAID. Figure 3 demonstrates the percentage of total USAID reconstruction awards received by each of the top ten recipients.

via SIGAR

via SIGAR

Via SIGAR

Via SIGAR

 

International Relief and Development, Inc. (IRD), number #2 on the list above is the subject of a recent WaPo investigation on Big budgets, little oversight in war zones. Quick notes from the report:

  • International Relief and Development increased its annual revenue from $1.2 million to $706 million, most of it from the USAID.
  • The nonprofit rewarded its employees with generous salaries and millions in bonuses. 38 IRD employees received more than $3.4 million in bonuses during the same period, according to the company’s tax filings.
  • IRD’s impressive board of advisers included former House majority leader Richard A. Gephardt and John D. Negroponte, who served as ambassador to several countries, including Iraq, and was the nation’s first director of national intelligence.
  • The company hired an all-star cast of humanitarian officials, drafting them from the top levels of USAID. In addition to the former acting administrator, the officials have included the deputy assistant administrator, the director of contracts and a key operations officer. According to WaPo, it has hired at least 19 employees from USAID. “Several of them came directly from their desks at the agency to occupy important posts at the company.”
  • As acting director of USAID, Alonzo Fulgham made $199,418. As vice president of IRD, he received $330,000. Jeffrey Grieco made $185,000 as the top public affairs official at USAID. As chief of public affairs at IRD, he received $225,000.

According to WaPo, the Special Inspector General for Afghanistan Reconstruction John F. Sopko had opened an investigation into allegations of “significant waste and mismanagement” and “kickbacks and bribery by IRD senior employees over a road project, which wound up costing $317 million.

We understand that SIGAR is also investigating IRD for  attempting to “use confidentiality agreements as a way of prohibiting its employees from making critical statements about IRD to “funding agencies” or “officials of any
government.” 

Via WaPo:
Some of the people who might know the most about what has happened with IRD-run programs — former company employees — say they have been barred from speaking about their experiences. Before leaving IRD, they said, they were asked to sign confidentiality agreements.

The agreements warn employees that they could be sued for making any “derogatory, disparaging, negative, critical or defamatory statements” about IRD to anyone, including “funding agencies” or “officials of any government.” Lawyers who reviewed the agreements at the request of The Post said it appeared that they could violate federal protections afforded to whistleblowers under the False Claims Act.

[Read a copy of the confidentiality agreement.]

In a letter to IRD, SIGAR Sopko writes that “IRD’s policy of prohibiting employees fiom informing government officials of critical information appears to violate the False Claims Act, 31 U.S.C. §§ 3729-3733, federal whistleblower statutes, and the Federal Acquisition Regulation. … The threat of retaliation for reporting problems to oversight agencies is all too real. I am simply not willing to tolerate an attempt to institutionalize employee intimidation. Therefore, I am initiating an inquiry into these allegations.”

SIGAR had also asked USAID to consider inserting a provision in all future contracts, cooperative agreements, and grant agreements for Afghanistan reconstruction that forbids the recipients of federal funds from using confidentiality agreements that prohibit their employees from talking to U.S. government officials.

Meanwhile at USAID/OIG — a “well-placed government source” told devex.com that the agency’s watchdog has been conducting an investigation into IRD for “months.” Devex.com reports that Bill Pierce, who serves as a spokesperson for IRD, told Devex that he was not aware of an OIG investigation that had been going on for months. 

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Snapshot: Top Sectors for State Dept Reconstruction Awards in Afghanistan (2002-2013)

– Domani Spero

Via SIGAR:

We identified seven project sectors for Department of State reconstruction awards in Afghanistan. The project sectors include mine removal, governance and rule-of-law, support to cultural activities and civil society, education, humanitarian aid, human rights, and economic development. The governance and rule-of-law project sector had the highest amount of total awards with $3.5 billion, of the $4.0 billion in total awards. Governance and rule-of-law projects include rule-of-law activities such as counternarcotics programs and justice sector reform, peacekeeping initiatives, and government outreach programs. Land mine removal programs had the second-largest proportion of total awards with $150.7 million. Table 1 includes the total awards for each identified project sector as well as the percentage of total awards.

 

Screen Shot 2014-04-22

Read more here (pdf).

 

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Snapshot: Top Recipients of State Dept Afghanistan Reconstruction Funds (2002-2013)

–Domani Spero

Via SIGAR:

State data indicated that the top-five recipients of State Afghanistan reconstruction awards by total obligations accounted for approximately $3.5 billion, or 87 percent, of total State reconstruction obligations. State awarded the remaining 13 percent of obligations to 766 recipients,who averaged about $676 thousand each in total obligations.

The top recipient of State reconstruction funding by total awards was Dyncorp International Limited Liability Corporation (Dyncorp). Dyncorp received approximately $2.8 billion in contracts, accounting for 69 percent of total State Department reconstruction awards. The majority of Dyncorp contracts were for governance and rule-of-law activities such training and equipping the Afghan National Police. Dyncorp contracts included police trainers, construction of police infrastructure, and fielding police equipment and vehicles. PAE Government Services Incorporated (PAE) received the second largest amount of total State reconstruction awards, receiving $598 million in contracts. PAE contracts supported development of the rule of law, including police training, counter narcotics advising, and justice sector development.

Of the total reported awards between the beginning of fiscal year 2002 and March 2013, 98 percent of awards by total value were scheduled to be complete by the end of calendar year 2013.

Screen Shot 2014-04-22

According to SIGAR, the U.S. Congress appropriated $96.57 billion between fiscal year (FY) 2002 and FY 2013 for Afghanistan reconstruction, principally for the Departments of Defense (DOD) and State (State) and the United States Agency for International Development (USAID). SIGAR analysis of Department of State data indicates that State obligated nearly $4 billion for reconstruction in Afghanistan between the beginning of fiscal year 2002 and March 2013.

Read more here (pdf).

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Iraq Got BLISS, Now US Mission Afghanistan Gets ALiSS or Afghanistan Life Support Services

– Domani Spero

Updated on April 25, 2014 with additional details on staffing and also on Herat. 

FP’s Gordon Lubold recently wrote about The Diplomatic Brain Drain in Afghanistan:

By summer, after a possible runoff election chooses Karzai’s successor, most of the mid-level and senior U.S. civilians with deep Afghanistan experience who would have the knowledge to help foster strong relations with the new government will be long gone. And, officials familiar with the matter said, they will be replaced by diplomats expected to have far less experience.
[...]
The drain of institutional knowledge from Kabul this summer stems largely from the State Department’s staffing policy when it comes to Afghanistan. Unlike other posts for which two- and three-year tours are typical, State usually keeps diplomats in Afghanistan for just one year before pulling them out. While the U.S. military has also been criticized for short tours that make it harder to cultivate and maintain relationships with the military’s Afghan counterparts, it’s the State Department that has for years come under the most criticism for one-year rotations in part because diplomats are considered to have greater influence over broader swaths of the Kabul government.

A State Department official said in an email that while one-year tours in Afghanistan will be in effect and many diplomats will leave Kabul this summer, the Department will ensure there aren’t gaps created by rotating out the current spate of diplomats.

 

The State Department has done one-year assignments in Afghanistan for the last decade.  Since it did not change the TOD while the military is still there, we doubt very much that it will change to 2-year tours if/when the military “departs” at the end of 2014. (See 10 Facts About US Withdrawal from Afghanistan).

(Note: We understand from a source who was posted in Afghanistan that a number of FSOs are serving two-year assignments in the mission. The guesstimate is placed at less than 10%. A few FSOs also extend their tours either so their spouses can serve with them or because it enables them to get onto a different bidding cycle.As for senior officials, we are told that “the Department was somewhat successful in pushing senior officials to stay more than one year,” although some senior FSOs apparently do not stay as long because “other opportunities arise or due to personality conflicts.”)

The Department has for years also offered “linked assignment” incentives to all bidders on non-DS Afghanistan (Entry-Level personnel bidding on entry-level assignments excepted). This means that an employee’s Afghanistan assignment is linked to his/her onward assignment, typically to non-hardship postings. Folks leaving Afghanistan this summer already have their next jobs selected for them a year ago. And if these FSOs get extended another year in Afghanistan (we don’t see that happening), there will be gaps at various embassies and consulates where these FSOs were scheduled to assume posts.

What should be interesting to see is how many FSOs have done repeat tours in Afghanistan in the past 12 years, and how many of those with language training, have done multiple tours in Kabul or other posts in the country.

In related news, the State Department is planning for the departure of the U.S. Military from Afghanistan. According to State, December 2014 will mark the end of the International Security Assistance Force (ISAF) mission, with Afghan forces taking the lead for security country-wide. This change will have implications for the Department of State. Along with the principal responsibility for the diplomatic mission,the State Department will now have the responsibility for providing life support services to Chief of Mission personnel in Afghanistan, including the Embassy staff, but also the Department’s contract personnel.

Related post: US Mission Iraq: Get ready for BLISS… no, not perfect happiness — just Baghdad Life Support Services

The State Department has issued a draft solicitation for a period of one (1) year with four (4) one year options contract for life support services for the Kabul Embassy Compound (KEC) Afghanistan and other U.S. government sites within the country.

The Afghanistan Life Support Services (ALiSS) program includes food operations and logistics, fire protection, vehicle maintenance services, laundry services, medical services, Regional Security Officer (RSO) support, warehouse operations, and miscellaneous support services and workforce augmentation personnel currently provided through other programs, Interagency Agreements or contracts.   The following life support services requirements will be included as optional services to be exercised at the Government’s discretion: Fuel support and logistics, to include procurement, storage, delivery and planning; Postal Services Support; Waste Management Services, to include solid, gray— and black—water, recycling; Recreational Services Management and/or support; Laundry Services; Transportation Services; Airfield Services and operations.

Now Staffing, or What’s Laundry Gotta Do With It?

The Lubold piece on FP says that the State Department would not provide the number of U.S. foreign service officers serving in Afghanistan. A U.S. official did tell FP that there are about 250 to 300 foreign service officers assigned to the U.S. embassy in Kabul with “the bulk of them are departing this summer.”  

There may actually be more according to the ALiSS solicitation which estimates the amount of laundry that needs washing per week.  Of course, the laundry line item in the solicitation did not separate FSOs, specialists, contractors, etc but we thought this interesting.  As of March 2014, quantities being laundered in Kabul include “An approximate maximum of 150 ongoing TDY occupants which require a once a week washing of bed linens and towels (approximately 50 loads per week) and “GSO HOUSING: An additional 250 residential size (20 pound) laundry loads per week.”

What will the future mission staffing look like?

According to the ALiSS solicitation, Embassy Kabul’s total permanent capacity will house 858 staff by 2017 but the total mission staffing appears to be three times that number.  Below is the breakdown of anticipated staffing according to the publicly available solicitation for life support services for US Mission Afghanistan:

  • The West Compound includes the New Chancery, the Old Chancery, three staff diplomatic apartment buildings (“SDAs”), and the Marine House. The West Compound also has a number of non—permanent buildings, offices and residences. By late summer 2017, construction will be completed on three new SDAs, a new Office Annex, a new Office Building Annex, an extension to the warehouse, and an extension to the Marine House. The Embassy’s total permanent capacity will house 858 staff.
  • The Kabul Embassy Complex (KEC) contains two major cafeterias with one on the West Embassy compound and the second on the East Compound. A third cafeteria is under construction within the new Office Annex in the West Compound and is expected to be operational by January 1, 2015. Each cafeteria offers three main meals per day seven days a week, as well as a salad/sandwich bar for afterhours dining.  The cafeteria on the West Compound is a 390 m2 facility that has a seating capacity for roughly 160 personnel.  The cafeteria on the East Compound is a 300 facility that has a seating capacity of roughly 150 personnel.
  • Camp Eggers: The majority of the housing will be containerized housing units (CHUs). The electric plant will be six diesel generators that will provide primary power for the entire camp. There will be wells added to the camp to provide water and the water will be treated. The camp population will be 1,500 personnel and Phase One construction should be completed by mid—2015.
  • Camp Seitz: The camp population is currently 620 personnel, but the number will likely rise to nearly 800 by mid—2015.

Additional Mission Afghanistan sites may include, but are not limited to, the following:

  • Consulate General Herat and supporting facilities (including Camp Kodiak): The diplomatic platform in Herat is a full Consulate. The current location, in a former “five star” luxury hotel, houses all COM operations in the consular district. The site provides housing, offices, a large dining facility that can be used as a shura/conference center, and other traditional Consulate components. The Consulate is currently negotiating for the acquisition of additional adjacent property to provide the potential for a helicopter landing zone. Projected post—2014 staffing in Herat is 101 (27 US direct hire/ 74 Local Employed Staff).
    (Note: We understand that after last summer’s attack there, the building was “pretty much demolished” and that necessary “fixes” are ongoing so our diplomats will be able to move back into the building on or about 2015). 
  • Consulate General Mazar—e Sharif and supporting facilities (including Camp Little Bear): The diplomatic platform is a formal Consulate that will continue to be located at the German NATO base, Camp Marmal, until NATO military forces withdraw from the base. The Consulate operates from U.S. and NATO military constructed hardened office space, plywood temporary office structures, hardened housing units, and containerized housing units. Life support is provided largely by German NATO forces at Camp Marmal, with limited support from U.S. military forces. Projected post—2014 staffing at this location is 70 (20 US direct hire / 50 Local Employed Staff).
  • Kandahar Diplomatic Presence: The diplomatic platform at Kandahar will continue to be located on the U.S. NATO Kandahar Air Field until all U.S. and NATO military forces withdraw from the Air Field. The diplomatic platform operates from a two—acre compound in close proximity to Camp Valdes, known as the “C&C Compound” site. The compound supports 27 direct hire employees and 7 Locally Employed Staff, but the compound is capable of supporting 50+ personnel with housing and office space. The compound provides office space for 16 people but could be retrofitted to accommodate the entire platform, if needed. The site includes a dining facility that is not utilized at this time. It also includes recreational facilities, gymnasium, picnic area, and shop space.
  • Jalalabad Diplomatic Presence: The diplomatic platform at Jalalabad is located on U.S. military forces’ base FOB Fenty, adjacent to Jalalabad Air Field. The diplomatic platform operates from U.S. military constructed hardened office space, plywood temporary office structures, and hardened housing units. U.S. military forces at FOB Fenty provide all life support. There is no DOS security contractor staff at Jalalabad and all current and foreseeable future movements depend upon military assets. Projected post—2014 staffing at this location is 9 (6 US direct hire / 3 Local Employed Staff).
  • Bagram Embassy Liaison Office: The Liaison Office will operate from U.S. military constructed hardened office space and reside in housing units provided by the military. U.S. and NATO military forces at BAF provide all life support. There is no State Department security contractor staff at Bagram and all movements depend upon military assets. Projected staffing at this location is 5 US direct hire.

The ALiSS solicitation also says that  “Due to the evolving U.S. profile in Afghanistan, the schedule for solicitation, award and implementation is aggressive and subject to change.”

 

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Who killed King Joffrey? And what about the State Dept’s “missing” $6 billion?

– Domani Spero

We recently posted about that $6 Billion Alert. What Does The Spox Say? Goring-ding-ding-ding … “Grossly Inaccurate” But …. On April 3, WaPo went with State Department inspector general issues alert over $6 billion in contracting money.  On April 4, TheBlaze.com reported that The State Department Has Lost Track of More Than $6Billion. On April 4, Washington Free Beacon has State Department Misplaced $6B Under Hillary Clinton. On April 6, Fox News (blog) screamed $6 Billion Went Missing From Hillary Clinton’s State Department …. Also on April 6, the Examiner.com – ‎reported State Department $6 billion missing: ‘Creates conditions conducive to fraud’.  On April 8, ABC News (blog) added a twist with Blackwater Named in State Department Probe, Spent $$ on Pricey  On April 9, AllGov has State Dept. Can’t Locate Files for $6 Billion Worth of Contracts. Russia’s RIA Navosti found itself an expert and ran with $6 Bln Vanished from US State Department Due to Corruption – Expert.

Finally ….

 

 

On April 13, ten days after WaPo first reported the $6 billion contracts and just when we could not stop talking about ‘The Lion And The Rose’ episode of ‘Game Of Thrones‘, State/OIG’s Steve Linick wrote to the editors of WaPo “about the State Department’s “missing” $6 billion:

WaPo, Sunday, April 13

The April 3 news article “State Department’s IG issues rare alert” reported on the management alert issued recently by my office. In the alert, we identified State Department contracts with a total value of more than $6 billion in which contract files were incomplete or could not be located. The Post stated, “The State Department’s inspector general has warned the department that $6 billion in contracting money over the past six years cannot be properly accounted for . . . . ”

Some have concluded based on this that $6 billion is missing. The alert, however, did not draw that conclusion. Instead, it found that the failure to adequately maintain contract files — documents necessary to ensure the full accounting of U.S. tax dollars — “creates significant financial risk and demonstrates a lack of internal control over the Department’s contract actions.”

Steve Linick, Washington

The writer is inspector general for the U.S. Department of State and Broadcasting Board of Governors.

 

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$6 Billion Alert. What Does The Spox Say? Goring-ding-ding-ding … “Grossly Inaccurate” But ….

– Domani Spero

 

Last week, State/OIG issued a Management Alert on Contract File Management Deficiencies at the State Department. The Alert is reportedly intended to well, alert senior Department management to the serious nature of this issue and provides “recommendations to assist in eliminating or mitigating those vulnerabilities.” The main thing is this:

“In sum, over the past 6 years, our audit work has uncovered significant contract file management deficiencies in Department contracts/task orders with a total value of more than $6 billion.”

The alert dated March 20, 2014 was addressed to the Under Secretary for Management Patrick F. Kennedy and the Assistant Secretary of Administration Joyce A. Barr. The signatory of this Management Alert is not State/OIG Steve Linick but three of the four Assistant Inspector Generals of State/OIG namely: Norman P. Brown, Assistant Inspector General for AuditsRobert B. Peterson, Assistant Inspector General for Inspections;  Anna S. Gershman, Assistant Inspector General for Investigations.  Mr. Brown has been AIG since July 2013, Mr. Peterson since 2003, and Ms. Gershman since 2011.  The official response to this alert is dated March 28, 2014 from Ms. Barr who as head of the Bureau of Administration reports to Mr. Kennedy at “M.” Ms. Barr has been “A” since 2011.  Mr. Kennedy has been “M” since 2007.

Do you know why it took six years for this alert to be issued? And how is it that this alert is not addressed to the State Department’s Deputy Secretary for Management and Resources Heather Higginbottom?

Since $6 billion is a lot of resources spent, it made a huge splash – described as “lost,” “missing,” “misplaced,” “lacks files,” or “not totally sure” where the money went.

It made the Daily Press Briefing, of course:

QUESTION: Marie, do you have any comment on the OIG report that was made public today on the $6 billion?

MS. HARF: I do. Just give me one second. Well, reports that there is a $6 billion that can’t be accounted for are grossly inaccurate. The OIG’s report noted that there were a number of incomplete files for our contracts and that these contracts’ cumulative value was about 6 billion. As highlighted in our response to the OIG, this is an issue of which the Department is aware and is taking steps to remedy. It’s not an accounting issue. I think it’s more like a bureaucratic issue. But it’s not that we’ve lost $6 billion, basically.

On March 20th, our new Inspector General did issue a management alert on contract file management deficiencies. The Bureau of Administration responded with a plan to address their three recommendation. Those are all posted on the IG’s web page now.

QUESTION: So how much money can you not account for if it’s not 6 billion?

MS. HARF: I have no idea.
[…]
QUESTION: But it’s way less than 6 billion? I mean, you said it was grossly inflated.

MS. HARF: Grossly inaccurate. Uh-huh.

QUESTION: Okay. So do – you must have –

QUESTION: What’s a rounded-up figure –

MS. HARF: I’m not – no –

QUESTION: You must have an estimate of what it is if you have an understanding –

MS. HARF: It’s my understanding that it’s not an accounting issue. It’s not that we can’t account for money. So I don’t – I’m not sure that there’s any money that we can’t account for.

QUESTION: So how is it grossly inaccurate, then?

MS. HARF: Because it’s not that there’s $6 billion we can’t account for. They said there were incomplete files –

QUESTION: Right.

MS. HARF: — and that the files were – their cumulative value for those contracts was about $6 billion. So it’s a filing issue. It’s not a “we lost money” issue.

QUESTION: So you’re sure that you know where all that money is even though you acknowledge that the files are not complete?

MS. HARF: I – that’s my understanding, yes. But again, all of this is posted on the IG’s website in much more detail.

QUESTION: But –

MS. HARF: I don’t have the $6 billion.

QUESTION: Yeah. I mean, I just – (laughter) – it sounds like it may be more of a distinction without a difference, saying it’s an accounting error, like maybe –

MS. HARF: No, because the notion that we can’t find $6 billion, right, would mean that it’s an accounting issue, that somehow we lost money that – you can understand why when people hear that they think that it means we’ve lost $6 billion. That’s my understanding that that’s not the case.

QUESTION: Yes, please. I mean, regarding this IG issue, it’s like every other day something is coming out of –

MS. HARF: IG’s been very busy, apparently.

QUESTION: Yeah. I mean, because there was no IG before, no five years.

MS. HARF: We have a new IG, yep.

QUESTION: Yeah, it came on September. Yeah. I mean, I’m trying to figure out – I mean, when he’s like – when you say grossly and inaccurate, does he presenting these things with information or just like a number?

MS. HARF: Yeah. So the way the IG works in general – and I don’t have the details about their methodology here – is they are independent and they undertake independent reviews, some I understand that are done just routinely, some I think are in response to people submitting things to them. And in general, after the IG does a draft report they submit it to either the post overseas or the office here or the bureau that deals with it so they can have a chance to review it and comment on it and to begin implementing recommendations, if there are any that they think are helpful. So there’s a process here. Then they eventually release the final report that sometimes takes into account comments, sometimes they disagree. We have a variety of ways to respond.

QUESTION: The reason I am asking because these things are related more about overseas activities and contracts. Does the State Department officially – when you say grossly inaccurate, are you going to say what is accurate?

MS. HARF: Yes. And as I said, our response and the entire report is up on the IG’s website. I’m happy to dig into it a little bit more. But yes, we do. I mean, that’s why we give responses and they’re published.

A good excuse to post this again:

Below are some of the cases specified in the $6 billion State/OIG alert:

  • A recent OIG audit of the closeout process for contracts supporting the U.S. Mission in Iraq revealed that contracting officials were unable to provide 33 of 115 contract files requested in accordance with the audit sampling plan.  The value of the contracts in the 33 missing files totaled $2.1 billion.
  • Forty-eight of the 82 contract files received did not contain all of the documentation required by FAR 4.8. The value of the contracts in the 48 incomplete files totaled an additional $2.1 billion.
  • An ongoing OIG audit of Bureau of African Affairs contracts revealed that CORs were unable to provide complete contract administration files for any of the eight contracts that were reviewed. The value of these contracts totaled $34.8 million.
  • In two joint audits conducted with DoD OIG,5 we found that, for two task orders valued in excess of $1 billion, the Bureau of International Narcotics and Law Enforcement Affairs had neither ensured that the COR for the Civilian Police contract in Afghanistan established or maintained contracting files that were complete and easily accessible, nor finalized and fully implemented standard operating procedures for maintaining COR files.
  • A joint audit with SIGIR,  we reviewed four task orders from the Worldwide Personal Protective Services II contract, with an estimated total cost of $1 billion as of May 29, 2008, and found that COR files maintained in both Washington, DC, and Baghdad, Iraq, were not accessible, complete, or maintained in accordance with Department policy.
  • One investigation revealed that a contract file did not contain documentation reflecting that modifications and task orders were awarded to the company owned by the spouse of a contractor employee performing as a Contract Specialist for the contract. This contract was valued at $52 million.  (Note: We think this is the relevant case – Former State Department Contract Employee And Husband Plead Guilty To $53 Million Fraud)
  • In another investigation, OIG found that a CO falsified Government technical review information and provided the contractor with contract pricing information. The related contract file was not properly maintained and for a period of time was hidden by the CO. This contract was valued at $100 million.
  • In a third investigation, OIG found that a COR allowed the payment of $792, 782 to a contractor even though the contract file did not contain documents to support the payment. Furthermore, an additional OIG investigation revealed that the contract file was missing a COR appointment letter required by FAR 1.602-2 (d).
  • COR files for a $2.5 million contract lacked status reports and a tally of the funds expended and remaining on the contract. OIG discovered other instances in which contract files lacked contract performance documentation and COR appointment and training certification; CORs failed to maintain technical information and performance records needed to monitor contractor performance; and COR filing systems were disorganized.

 

The Management Alert issued concludes that “The failure to enforce those requirements exposes the Department to significant financial risk and makes OIG oversight more difficult. It creates conditions conducive to fraud, as corrupt individuals may attempt to conceal evidence of illicit behavior by omitting key documents from the contract file. It impairs the ability of the Department to take effective and timely action to protect its interests, and, in turn, those of taxpayers. Finally, it limits the ability of the Government to punish and deter criminal behavior.”

If these contract documents were never completed, what is there to file? If these were filed but misplaced, how do you find files that date back to 2008 for instance on the Worldwide Personal Protective Services II contract in Iraq? Also, without accurate files how do we even know that “It’s not a “we lost money” issue?” 

This is the second Management Alert issued by State/OIG under Steve Linick this year. We have not been able to locate previous management alerts issued by any of his predecessors as Inspector Generals of the State Department.  Perhaps they’re available, not just to the public. But this scrub down is smart.  Every new sheriff should do it. We’re also looking forward to the next alert. It’ll tell us where the new IG is looking under the hood.

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Related items:

-03/31/14   Management Alert – Contract File Management Deficiencies (MA-A-0002)  [1768 Kb]  Posted online April 3, 2014

-01/13/14   Mgmt Alert on OIG Findings of Significant and Recurring Weaknesses in the Dept of State Info System Security Program (MA-A-0001)  [6298 Kb]  Posted online January 16, 2014

 

 

 

 

 

 

 

 

 

 

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US Consulate Kentucky Offers Diplopundit a Green Card Lottery Visa in ALL CAPS, and Wrong Font!

– Domani Spero

We just got this ‘Congratulations! You Won the Green Card Visa Lottery‘ email purporting to originate from the State Department.

Yup, not just from the State Department but from the United States Consulate in Kentucky.  In ALL CAPS. And in wrong font.  You dolts!  Didn’t you get the memo?  12 pt Times New Roman!

In exchange for “a processing fee” of $890 – $1420, the U.S. lottery visa that we apparently “won” also includes free tickets to — the United States. How do we claim this prize and free ticket if we’re already in the United States? We desperately needed a vacation and would like tickets for Hawaii. We were going to call the phone number provided to inquire (offer says do not email because they’re “busy”) but the country code says +66. Mr. Googles says that country code belongs to Thailand.  And here we thought US Consulate Kentucky is in the land of Senators Mitch McConnell and Rand Paul.

Don’t you just want to head to Thailand for spring break, find U.S. Consulate Kentucky’s Secretary General Brooke and punch him in the face?

Screen Capture from US Embassy London

Screen Capture from US Embassy London

So below is the U.S. Consulate in Kentucky, USA with a phone number in Thailand headed by a Secretary General who uses an email without a .gov.  Kidding aside, if you don’t want to be a fraud victim, read this one:  Diversity Visa Program Scammers Sending Fraudulent Emails and Letters.

Apologies for inflicting an ALL CAPS post on our readers but doing this as a PSA:

 

UNITED STATES DEPARTMENT OF STATE, 

NATIONAL- VISA- CENTER 32  ROCHESTER  AVE,

PORTSMOUTH , NH 0358801-2  USA 

CASE- NUMBER::FRC 55865663318AA

PREFERENCES- CATEGORIES:-  (DV DIVERSITY)
FOREIGN- STATE -CHARGEABILITY

WE WISH TO INFORM YOU THAT YOU ARE AMONG THE LUCKY SELECTED WINNERS OF THE U.S. GREEN CARD EMAIL BALLOT LOTTERY PROGRAM OF THE 2014 EDITION .

DETAILS.
THIS E-MAIL BALLOT VISA- LOTTERY- PROGRAM WAS INNOVATED ON 2ND OF MARCH BY- USAFIS, THIS IS THE 2ND EDITION OF THE PROGRAM AND ITS DESIGNED TO BE HELD EVERY YEAR, THE AIMS AND OBJECTIVES OF THE PROGRAM IS TO GIVE FREE- VISA’S TO CITIZENS OF DEVELOPING COUNTRIES AROUND THE WORLD WHO WISHES TO TRAVEL TO U.S AND START A NEW LIFE AND WORK.

IN THIS INNOVATED PROGRAM, NO -REGISTRATIONS WERE BEING MADE OR REQUIRED AS THE PROGRAM WAS BEING CONDUCTED THROUGH COMPUTER DRAW SYSTEM OF E-MAIL RANDOM EXTRACTIONS FROM WORLD WIDE REGISTERED WEBSITES.

IN THIS 2ND EDITION OF THE PROGRAM, TWO HUNDRED AND TWENTY FIVE (225) U.S- VISA’S WERE RELEASED AND 6.3 MILLION E-MAIL ADDRESSES WERE EXTRACTED FROM WORLD WIDE REGISTERED WEB-SITES DURING THE 33-DAYS EXTRACTION PERIOD THAT RAN  FOR FINAL SELECTION, ALL EXTRACTED EMAIL ADDRESSES WERE ASSIGNED TO DIFFERENT TICKET NUMBERS FOR REPRESENTATION AND PRIVACY FOR FINAL- SELECTION THROUGH COMPUTER- DRAW- SYSTEM.

YOUR E-MAIL ADDRESS ATTACHED TO TICKET- NUMBER (564002-188) DREW -THE LUCKY- NUMBER’S WHICH SUBSEQUENTLY WON YOU THE U.S VISA AND WE ARE SENDING THE WINNING- NOTIFICATION- DIRECTLY THROUGH THE- SELECTED- WINNING E-MAIL ADDRESS WHICH MEANS THAT IF YOU RECEIVE THE WINNING- NOTIFICATION IN YOUR MAIL BOX THAT YOU HAVE BEEN SELECTED- AMONG THE LUCKY- WINNER’S.

APPROXIMATELY ONE HUNDRED AND FIFTY FIVE (155) LUCKY- SELECTED- WINNER’S HAD BEEN NOTIFIED- THROUGH THEIR SELECTED E-MAIL ADDRESSES- INCLUDING YOU TODAY

YOUR VISA- WINNING -IDENTIFICATION- CASE -NUMBER IS (FRC55865663318AA) NOTE THAT YOUR VISA- WINNING IDENTIFICATION CASE NUMBER IS YOUR PIN CODE TO CLAIMING YOUR VISA.

DISQUALIFICATION,
ANY -SELECTED- LUCKY- WINNER FROM THE SOME COUNTRIES WILL BE DISQUALIFIED, THIS IS BECAUSE EACH HAS MORE THAN 50,000 CANDIDATES IN THE U.S:-

BASIC- QUESTION.
HOW CAN I MAKE THE CLAIM OF MY VISA?
YOU WILL OBTAIN YOUR VISA THROUGH THE- U.S CONSULAR OFFICER IN YOUR HOME COUNTRY OR COUNTRY OF YOUR PRESENT RESIDENCE AND NOTE THAT THE U.S CONSULAR OFFICER IN YOUR HOME COUNTRY OR COUNTRY OF YOUR PRESENT RESIDENCE WILL NOT ATTEND TO YOU WITHOUT YOUR PROCESSED DOCUMENTS OF WHICH TO ACCESS YOUR VISA WINNINGS THROUGH THEIR NETWORK DATABASE.

OUR VISA PROCESSING AGENTS HAD BEEN APPORTIONED AMONG SIX GEOGRAPHIC REGIONS, ALL SELECTED LUCKY WINNER’S WILL NEED TO ACT ON THEIR CLAIMS APPLICATIONS QUICKLY BEFORE THE VISA CLAIM EXPIRATION DEADLINE(30TH APRIL 2014)

FOR YOUR- VISA- FORM AND REQUIREMENTS,CONTACT OUR ASIA/PACIFIC/MIDDLE EAST -AGENT VIA THIS CONTACT DETAILS,  NAME: MRS DONNA WHITE 

E-MAIL:  ussdc@america.hm
E-MAIL:  usavisa@linuxmail.org


TEL:+66-948762973

 N.B: PROCESSING FEE.
SINGLE- US$890
DUAL- US$1,420

HOW CAN I PAY THE PROCESSING FEE? 
THE FOLLOWING FORMS OF PAYMENT ARE ACCEPTED: 

WESTERN UNION MONEY TRANSFER.
MONEY GRAM.
BANK TRANSFER.

BENEFITS. 
ALL THE SELECTED -LUCKY -WINNER’S WILL GET FREE AIR TICKETS TO THE U.S. YOUR AIR TICKET WILL BE SEND TO YOU BY- OUR  ASIA  /PACIFIC /MIDDLE EAST AGENT TOGETHER WITH YOUR PROCESSED DOCUMENTS.

PLEASE READ AND FOLLOW ALL THE ENCLOSED INSTRUCTIONS VERY CAREFULLY.

DO NOT REPLY BACK TO THIS NOTIFICATION E- MAIL (BUSY)

FOR FURTHER INQUIRIES; 
CONTACT OUR  ASIA  /PACIFIC AGENT WHERE YOUR VISA WINNING DETAILS FALLS.

SINCERELY YOURS,
MR. TONY BROOKE 
SECRETARY GENERAL US CONSULATE  KENTUCKY 

 

If you are not too familiar with visas and the United States, please know that there are no/no U.S. embassies or consulates inside the United States. There is no such thing as a Secretary General or a U.S. Consulate Kentucky. To learn more about the green card lottery, officially called the Diversity Visa (DV) Lottery Program, please check out the official page of the U.S. State Department at http://travel.state.gov/content/visas/english/immigrate/diversity-visa.html.

 

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Cuban Twitter: Short Message Service for Displaced People in the Northwest Frontier of Pakistan?

– Domani Spero

The month of April started off with a bang for USAID!  We saw the Twitter Cubano story first, and then there’s USAID’s reportedly $1billion a year “DARPA-like” innovation lab.  Also SIGAR John Sopko accused USAID of cover up in Afghanistan. And no, USAID Administrator is not going to New Delhi as the next US Ambassador to India. We were seriously intrigued by  the ZunZuneo story, the secret Cuban Twitter reported by the Associated Press. Can you blame us?

 

We thought the Associated Press did a great investigative piece. Sorry, we are not convinced that this was ‘breathlessly written.’

In July 2010, Joe McSpedon, a U.S. government official, flew to Barcelona to put the final touches on a secret plan to build a social media project aimed at undermining Cuba’s communist government.

McSpedon and his team of high-tech contractors had come in from Costa Rica and Nicaragua, Washington and Denver. Their mission: to launch a messaging network that could reach hundreds of thousands of Cubans. To hide the network from the Cuban government, they would set up a byzantine system of front companies using a Cayman Islands bank account, and recruit unsuspecting executives who would not be told of the company’s ties to the U.S. government.

McSpedon didn’t work for the CIA. This was a program paid for and run by the U.S. Agency for International Development, best known for overseeing billions of dollars in U.S. humanitarian aid.

For a look on how much the U.S. Government spent on Cuban Democracy between 1996-2011, see a snapshot of the funding here.

In an interview with Popular Science, USAID’s Administrator, Rajiv Shah, who led USAID through the program, defended it.

“One of the areas we work in is in the area of rights protection and accountability,” Shah said. The highest-level official named in the AP documents is a mid-level manager named Joe McSpedon.

But Shah—despite the fact that the program was unknown to the public—said the idea that ZunZuneo was a covert operation is “inaccurate,” and pointed out that there are other USAID programs that require secrecy, such as protecting the identities of humanitarian workers in Syria. “These projects are notified to Congress and the subject of a thorough accountability report,” he said.

 

The AP story mentions two USAID connected companies: Creative Associates International as contractor and Denver-based Mobile Accord Inc. as one of the subcontractors.

According to Denver Business Journal, Mobile Accord is the parent organization of the mGive business, which helps nonprofits raise donation via text message, and of the GeoPoll business handling opinion surveys in developing nations.

The Guardian reports that the money that Creative Associates spent on ZunZuneo was “publicly earmarked for an unspecified project in Pakistan, government data show. But there is no indication of where the funds were actually spent.”

So we went digging over at USASpending.gov. The first contract we located is a State Department contract with Mobile Accord in the amount of $969,000 and signed on September 18, 2009.  The contract description says: “Short Message Service Support to Be Provided to Displaced People in the Northwest Frontier of PAKISTAN.”

Screen Shot 2014-04-04

 

The second contract also with Mobile Accord in the amount of $720,000 was signed in July 8, 2010:

Screen Shot 2014-04-04

So if Twitter Cubano was not a “covert”operation, what’s this over $1.6 million contract between the State Department and Mobile Accord for the Northwest Frontier Pakistan about?  The folks who prepared this data for USASpending.gov did not really intend to be inaccurate with this public information, right?  They just inadvetently spelled ‘Cuba’ as ‘Northwest Frontier Pakistan.’

And this is the official version of  ‘truth in reporting”as public service? What you don’t know can’t harm you?

If this money actually went to Twitter Cubano, and was hidden in plain sight, how are we to believe the accuracy of the data we see on the USASpending website?

Where else do we have similar projects for democracy promotion and/or regime change if possible, do you know?

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Snapshot: Cuba Democracy Funding to State and USAID – FY1996-2011

– Domani Spero

The Associated Press recently produced an investigative piece on ZunZuneo, a Twitter Cubano reportedly aimed at undermining the socialist government in Cuba that was managed by USAID.

The official government response cited a GAO report from 2013 which make no mention of ZunZeneo. The report, however, provides a snapshot of how much we have spent on the Cuba Democracy project from 1996-2011. Ay mucho dinero:

In fiscal years 1996 through 2011, Congress appropriated $205 million for Cuba democracy assistance, appropriating 87 percent of these funds since 2004. Increased funding for Cuba democracy assistance was recommended by the interagency Commission for Assistance to a Free Cuba, which was established by President George W. Bush in 2003.13 Program funding, which peaked in 2008 with appropriations totaling $44.4 million, has ranged between $15 and $20 million per year during fiscal years 2009 through 2012. For fiscal year 2013, USAID and State reduced their combined funding request to $15 million, citing operational challenges to assistance efforts in Cuba.14

In fiscal years 1996 through 2011, $138.2 million of Cuba democracy funds were allocated to USAID and $52.3 million were allocated to State. (see GAO report pdf).

 

Screen Shot 2014-04-03

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