@StateDept Spent Millions on AutoInjectors to Counteract Nerve Agent Exposure, Guess What Happened?

WaPo’s Jon Swaine has an investigative piece on a $120 million State Department contract on a treatment for nerve agent poisoning. According to the report, WaPo has “obtained internal company records, reviewed emails from Emergent staffers and government officials, and interviewed nine people involved in making, selling or buying the Trobigard injectors.”
WARNING! This will get you mad.

“In June 2017, a director of regulatory affairs at the government contractor Emergent BioSolutions told colleagues that she objected to claims the company was making in a brochure for one of its newer products: a drug injector for victims of exposure to nerve agents.

“Functionality testing has not been successful in this device,” Brenda Wolling wrote in comments obtained by The Washington Post. Regarding a claim that the injector was designed to withstand “challenging operational and logistical conditions,” she wrote, “No testing ever conducted.” Even to describe the product as a “treatment of nerve agent poisoning,” Wolling wrote, “implies that we have efficacy data showing it works.”

Three months later, the Trump administration awarded Emergent a $20 million no-bid contract to supply those very injectors to the State Department. The firm later received a second contract, worth up to $100 million, to supply the agency with more of the injectors — sold under the name Trobigard — and related treatments.”

Apparently, the State Department told Emergent that it had obtained a legal opinion from the FDA’s general counsel saying the department could buy Trobigard for use by U.S. diplomats overseas, citing a company record. The report says, the company “has not sought approval from the U.S. Food and Drug Administration — a circumstance that bars the product’s sale in the United States.”

“By September 2017, State Department officials were increasingly alarmed at chemical weapons use by the Syrian regime and the Islamic State and were anxious to boost protections for U.S. diplomats. The agency gave Emergent a one-year contract worth $20.5 million to supply auto-injectors. Under the deal, Emergent delivered 456,845 auto-injectors — enough to provide several for each of 58,000 Foreign Service officers and local employees overseas.

No bid competition was held, on the grounds that there was “unusual and compelling urgency” after Pfizer’s production halt, according to contract records. The injectors were needed to protect officials who “operate in countries with active and/or assumed chemical [redacted] programs,” the records show.
[…]
Emergent’s 2017 deal with the State Department entailed a sharp increase in spending by the department above earlier plans. In August 2015, the department had been preparing to pay Meridian $750,000 per year for five years to replace expiring devices, according to records of an abandoned deal.”

The company-funded study in the Netherlands tested the drugs on guinea pigs exposed to sarin gas. That’s right guinea pigs.

“Six weeks after the State Department signed the deal, Emergent’s first study of Trobigard’s drugs was completed. The company-funded study in the Netherlands tested the drugs on guinea pigs exposed to sarin gas and recorded positive findings. As they published their work in a scientific journal, the study’s authors warned that the results “cannot be directly extrapolated to the human situation.”

Can the embattled OIG still take this on as a special project? Can House Foreign Affairs (HFAC) or House Oversight Committee (HORC) take a look?

“In July, Emergent leaders ordered that Trobigard sales materials be scrapped and that the device be moved to a portion of the company’s website that lists products in development, the company confirmed. They also told staffer to make sure all future sales materials for Trobigard were approved by the company’s medical, legal and regulatory departments.

Emergent put together evidence that all injectors bought by the State Department were safe, former employees said. Government officials ultimately agreed. In September 2019, the State Department authorized the payment of a $10 million contract installment to Emergent.”

You need to read this in full. A State Department “no comment” is not acceptable.

Extracted data below from SAM.gov, the new fedbiz, with links to the contracts. Are there more that we’ve missed?

EMERGENT COUNTERMEASURES INTERNATIONAL LTD

  • Unique Entity ID (DUNS)220984617
  • CAGE CodeU1C03
  • AddressBUILDING 3, LONDON, W4 5YA

Registration

  • Expiration Date Jun 23, 2021
  • Purpose of Registration All Awards
  • Debt Subject to Offset  No

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US Mission Iraq Gets One COVID-19 Case From DOS Chartered Flight Out of Dulles

 

We recently learned that an individual who arrived at US Mission Iraq on a charter flight from Dulles, VA on July 1st has tested positive of COVID-19 and has been in quarantine since arrival.
We understand that the chartered aircraft was a 767 with 2-2-2 seating in business class and 2-3-2 seating in economy. The middle seat in economy was left open but the remaining seats were filled. The flight included over a hundred passengers who were either US direct-hire or contractors supporting Mission Iraq. We understand that some passengers purposefully did not wear their masks correctly during the flight.
Passengers were notified about the case on July 9th when all Mission personnel received an email from the Front Office. Passengers reportedly also received a call from post management to confirm they’d seen the email. The mission notification indicates that post is “in the process of contact tracing” to include at various points since the flight’s departure on June 30th. 
We also learned that post has no idea if the individual was COVID positive at the time of the flight. The CDC is advising people to “stay home for 14 days from the time you returned home from international travel” but what do you do with travel within the United States?
The passengers are subject to a 14-day quarantine upon arrival (apparently now standard procedure). However, there were understandably concerns that MED and post management did not provide details about when the infected person was tested or why there was over a week’s delay in post notification. It is also understood that post has  alerted those who were in close proximity to the infected individual but people have no idea on how wide an area of the plane was notified.    
We were wondering if employees can get a COVID-19 test if they ask for it or if tests are only available to those manifesting COVID-19 symptoms.
We learned today that those on the flight received a reminder today to check in with the MED unit before rejoining the general population on July 14. They were advised to discuss any symptoms they had during quarantine with MED and, “if we [MED Unit] feel it is necessary, we will perform a COVID-19 test”.
Does MED Iraq have the ability to process COVID-19 tests at post; and if not, where are these tests sent and what is the turn around for results? What about other posts without Embassy Baghdad’s resources?
Given that the U.S. is now a hotspot, are State Department employees and contractors tested prior to their departure to Iraq or elsewhere?
We should note that the United States is currently #1 in confirmed COVID-19 cases in the world, and with over 137,000 deaths, it is also #1 in COVID-19 deaths in the world. For detailed situation update worldwide, see the European Centre for Disease Prevention and Control.

US Embassy Kabul: As Many as 20 People Infected With COVID-19 (Via AP)

 

Contractor Resolves Charges Relating to Fraud on GSA Contract to Modernize the Harry S. Truman Building

 

Via USDOJ:
Government Contractor Resolves Charges Relating to Fraud on General Services Administration Contract to Modernize State Department Building

Alutiiq International Solutions LLC (AIS), a subsidiary of Afognak Native Corporation (Afognak) and an Alaskan Native Corporation, within the meaning of the Alaska Native Claims Settlement Act, that performs construction work on government contracts, has entered into a non-prosecution agreement (NPA) and has agreed to pay over $1.25 million to resolve the Justice Department’s investigation into a kickback and fraud scheme perpetrated by a former AIS manager on a U.S. Government contract administered by the General Services Administration (GSA), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

As part of the NPA, AIS has agreed to pay $1,259,444 in victim compensation payments to the GSA.  Under the terms of the NPA, AIS and its parent company, Afognak, have agreed to cooperate with the government’s ongoing investigation and prosecution of individuals, and to report to the department evidence of allegations of violations of U.S. fraud, anti-corruption, procurement integrity, and anti-kickback laws.  Afognak and AIS also agreed to enhance their compliance program and internal controls, where necessary and appropriate, to ensure they are designed to detect and deter, among other things, fraud and kickbacks in connection with U.S. federal government contracts.

According to AIS’s admissions contained in the NPA, beginning in or around June 2010, the AIS project manager assigned to a multi-million dollar GSA contract to modernize the Harry S. Truman Federal Building in Washington, D.C., began receiving kickbacks from a subcontractor on the project in exchange for steering work to the subcontractor.  These kickbacks initially were paid in the form of meals, vacations, and other things of value but, by 2015, the AIS project manager began demanding cash kickbacks equivalent to 10 percent of the value of contract modifications that were being awarded to the subcontractor.  At the same time, the AIS project manager billed the GSA for services purportedly provided by an on-site superintendent when there was no superintendent on site.  The AIS project manager’s false and fraudulent billings caused the GSA to pay $568,800 to AIS that it should not have paid.  Additionally, when making contract modification requests to the GSA, the AIS project manager illegally inflated the estimated costs that AIS received from its subcontractor, resulting in $690,644 in monies paid by GSA to AIS.
[….]

A federal grand jury in the District of Columbia returned an indictment charging the AIS project manager, Elmer Baker, with conspiracy to violate the Anti-Kickback Act, and four counts of wire fraud, in May 2019.  Trial is currently scheduled for Dec. 7, 2020, before U.S. District Court Judge Amy Berman Jackson.

An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Read the full statement here. Download AIS Non-Prosecution Agreement

Newly Gilded Bureau of Super Talent Talks About Self, Super Heroes on Earth 2

We received a question of which we have no answer:
Sender A asks, “how much time can they dither while the place collapses?”
What are you talking about?
Oops, folks, you were supposed to change your signature blocks as soon as possible, but preferably no later than last Monday!  Yes, yes, this is terribly very serious. You can’t be a bureau of super talent if you don’t have the approved signature block!
Meanwhile on Earth 2:

On the other hand, things are not as peachy on Earth 1:

Also on Earth 1, also not peachy:

DynCorp Pays $1.5M to Resolve Kickback Allegations in Baghdad, Iraq

 

This is a follow-up to a 2017 case about a former government contractor sentenced to four years in prison for his role in a government contract kickback scheme that caused a loss of more than $3.4 million to the U.S. Department of State.

According to court documents, Wesley Aaron Struble, 49, a U.S. citizen of Batangas, Philippines, engaged in a conspiracy to violate the Anti-Kickback Act in 2011 and 2012 while employed in Iraq as a government contractor. Initially employed by a business identified in court documents as Company B, Struble learned that another business, identified in court documents as Company A, was seeking a lease of real property for use related to a U.S. Department of State contract. Struble knew that Company B was paying approximately $124,000 per month to a third business, identified in court documents as Company C, for a lease of real property. According to court documents, Struble became a manager for Company A, and together with another manager for Company A, engaged in a conspiracy with associates of Company C to make the lease of property available to Company A at an inflated rate of $665,000 per month.

(See That time when a real property lease in Iraq jumped from $124,000/mo to $665,000/mo).
Last month, USDOJ announced that DynCorp Pays $1.5M to Resolve Kickback Allegations:

ALEXANDRIA, Va. – DynCorp International, LLC (DynCorp), located in McLean, has agreed to pay $1.5 million to settle civil fraud allegations involving two former DynCorp officials, Wesley Aaron Struble and Jose Rivera, who solicited and accepted kickbacks from an Iraqi subcontractor in connection with DynCorp’s lease of property for its operations in Baghdad, Iraq on behalf of the U.S. Department of State.

Struble and Rivera previously pleaded guilty in the Eastern District of Virginia to violating the Anti-Kickback Act for their role in soliciting and accepting at least $390,000 in cash kickbacks from the Al-Qarat Company in exchange for influencing DynCorp’s lease of property in Baghdad at a lease amount higher than the previous lease. The lease costs were included with services for international civilian policing that DynCorp billed under a U.S. Department of State contract in 2011 and 2012.

The settlement resolves the alleged liability of DynCorp for violation of civil penalties under the Anti-Kickback Act and the civil False Claims Act arising out of Struble’s and Rivera’s fraudulent conduct while employed by DynCorp.

The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Department of State Office of Inspector General, and the Federal Bureau of Investigation.

The matter was investigated by Assistant U.S. Attorney Christine Roushdy. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.

The original announcement is available here.

Iraqi Protesters Breach U.S. Embassy Baghdad’s Compound

Media reports indicate that Iraqi protesters, identified as Iraqi Shiite militia members and their supporters, stormed the U.S. Embassy Baghdad on December 31, in protest of the deadly air strikes conducted by U.S. forces over the weekend. Reports note that the Sunday strikes killed at least 25 fighters and wounded 55.
On December 30, SecDef Mark Esper announced that “the Department of Defense took offensive actions in defense of our personnel and interests in Iraq by launching F-15 Strike Eagles against five targets associated with Kata’ib Hezbollah, which is an Iranian-sponsored Shiite militia group.  The targets we attacked included three targets in Western Iraq and two targets in Eastern Syria that were either command and control facilities or weapons caches for Kata’ib Hezbollah.”
On December 27, a rocket attack at an Iraqi base killed one U.S. contractor and wounded four U.S. troops. See 
According to the AP, the State Department has stated that all U.S. personnel at Embassy Baghdad are safe and that there are no plants to evacuate.
This morning, U.S. Embassy Baghdad issued a security alert advising “U.S. citizens not to approach the Embassy.  U.S. citizens should keep in touch with family members.  In an emergency, U.S. citizens in Iraq or those concerned about family in Iraq should contact the Department of State at +1-202-501-4444 or toll-free in the U.S. at 1-888-407-4747.”

 

Foreign Affairs Security Training Center (FASTC) Opens in Blackstone, Virginia

 

On November 14, 2019, Diplomatic Security tweeted a video of the formal opening of the Foreign Affairs Security Training Center (FASTC) located in Blackstone, Virginia.
According to state.gov, the Department of State, working with the U.S. General Services Administration (GSA), conducted environmental studies at Fort Pickett, which showed that the site was suitable for FASTC. In 2015, GSA purchased property and secured land use agreements for approximately 1,400 acres of publicly held land. On February 25, 2016, construction began for the FASTC project.
The final FASTC construction update notes that Hensel Phelps is the general contractor responsible for building the third and final construction phase of FASTC. The venues for this phase include the High Speed Anti-Terrorism Driving Course (West), Explosive Simulation Alley, Venue Classroom buildings, Indoor/Outdoor Firing Range, Central Warehouse, Armory, Parking Area for Training Vehicles, and a Fitness Center. Turnover of the Contract 03 venues to the State Department reportedly began in summer 2019. The Armory, Warehouse, Mock Urban Driving Track and a Parking Area have already been turned over to State for their use according to the FASTC September newsletter.
According to Diplomatic Security, DSS will train roughly 10,000 students at FASTC, including DSS special agents, other Foreign Service personnel, other U.S. government employees assigned to U.S. embassies and consulates, and some foreign nationals.  The Foreign Affairs Counter Threat (FACT) course, required by Department of State personnel assigned to overseas posts was scheduled move to FASTC this year.
For more information about FASTC, visit https://www.state.gov/FASTC

Related posts:

@StateDept’s “New Camp Sullivan” in Afghanistan Four Years On: A Lovely $103.2 Million Flat Dirt

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State/OIG’s Office of Evaluation and Special Projects has released its Evaluation of the Bureau of Diplomatic Security’s Aegis Construction Contract at Camp Eggers in Afghanistan (PDF). Well, nothing good to read in this report, but the flat dirt is lovely, and makes us want to pull our hair out in  frustration. We bring you some GIFs to make us all feel better.

Camp Eggers Afghanistan, Photo by State/OIG

Things of note excerpted from the IG report:
The Department awarded Task Order 10 in July 2011 to Aegis (GardaWorld)  to provide and manage an armed and unarmed guard force known as the Kabul Embassy Security Force (KESF) for Embassy Kabul and other U.S. diplomatic facilities within Kabul, Afghanistan. On September 30, 2014, the Department modified Task Order 10 held by Aegis to allow for the renovation of Camp Eggers in its entirety and to erect a new facility known as the “New Camp Sullivan.” […]Modification 43 was issued to Aegis under a firm fixed price for the design-build of the Camp Eggers construction project. The task order modification was valued at about $173.2 million with an estimated completion date of March 31, 2016.
[…] An Aegis official told OIG he did not believe the company had undertaken any construction projects other than building a shooting range at Camp Sullivan. An OBO official noted that Aegis lacked the “institutional expertise” to build to OBO standards, and several Department officials told OIG that they had doubts about Aegis’s ability to carry out major construction work.

 

On January 10, 2014, AQM awarded a contract to the management consulting firm, Markon, on behalf of DS to perform professional engineering services.[..] Markon […] warned the Department in August 2014—a month before the task order was modified—that the project would not likely be finished on time or on budget. The Department nonetheless chose to move forward with this fundamentally unsuitable construction mechanism because of what it viewed as exigent need and a lack of alternatives.

 

Multiple Department officials, as well as an Aegis official, told OIG that they viewed the initial 18-month project timeline as unreasonable. An official from AQM expressed skepticism that such an extensive project could ever be completed so quickly in a construction environment as logistically complex as Afghanistan.[…]The renovation of Camp Eggers entailed extensive demolition and redevelopment, including [snip] the construction of new facilities. The “New Camp Sullivan” facility was intended to become a self-supporting, multi-use facility, which included life support for up to 900 personnel (expandable to house up to 1,500 personnel) all within a secure perimeter.

 

Aegis, through its subcontractor, CWI, purchased materials costing approximately $19.4 million for Camp Eggers. However, roughly 23 percent of these materials ($4.5 million) were obtained without submitting proper documentation or receiving proper Department approval.[…]The materials had to be stored due to numerous project delays, which prevented CWI from using the materials as they were delivered. The storage continued throughout the life of the contract until all of the materials were disposed of by May 2018. Over the life of the task order, the Department wasted about $22 million on materials that were never used and then paid to store them

 

Although Aegis continuously missed project milestones and failed to adhere to contract requirements, the Department still did not take meaningful corrective action against Aegis beyond issuing LOCs. As noted, these were primarily issued by DS. The Department also held a number of meetings with Aegis personnel to discuss the lack of progress made on the project, but no further corrective action was taken.

 

The Department reached a settlement with Aegis in March 2019 whereby the Department agreed to pay Aegis a total of $94.6 million. Based on this figure, in addition to three separate contracts with Markon Solutions, Incorporated for professional engineering and design review services, OIG identified a total of $103.2 million in questioned costs related to the Camp Eggers project.[…] the “New Camp Sullivan” remained flat dirt after more than four years of effort. The Department estimated that approximately 10 percent of the construction work was completed, and the 100 percent design—the final design—remained unfinished.

After the termination of the Camp Eggers project, the Department transferred materials stored in Kabul to fill other U.S. Government needs in the area. Regarding the materials in Dubai, Red Sea Housing Services Company FZE (Red Sea), the company with whom the Department ordered CHUs, reached a final termination settlement valued at about $2.5 million with Aegis and the Department under which Red Sea would keep all the materials and equipment they procured on behalf of the Department. The remaining materials in Sterling, VA were disposed of through the General Services Administration’s excess property program and some were scrapped.

Via reactiongif.com

 

OIG’s conclusion: [T]he Department’s sense of urgency, the selection of a non-construction contractor, the assignment of officials inexperienced in construction to oversee the project, and the failure to hold the contractor accountable for particular instances of poor performance led to the expenditure of more than $100 million without any discernible benefit to the Department or the people it intended to protect. OIG also notes that, more generally, this project illustrates many of the broader concerns that arise when the Department pursues construction projects in contingency or otherwise challenging environments. The Camp Eggers project again highlights the importance of making well-informed, thoughtful choices regarding the most appropriate contract vehicle; careful, consistent oversight; and development of a process for construction work in contingency zones that is sufficiently nimble to address urgent security needs but also considers the resources and capabilities of all relevant Department bureaus.

Former State/OIG IT Contractor Pleads Guilty to Theft and Embezzlement of USG Computers

 

On March 7, 2019, USDOJ/U.S. Attorney’s Office for the Eastern District of Virginia announced that a former IT contractor for the State Department’s Office of Inspector General pled guilty to theft and embezzlement.

A former federal contractor pleaded guilty today to theft and embezzlement of up to 16 government computers from the U.S. Department of State.

According to court documents, Andrew W. Cheveers, 31, of Bowie, Maryland, was an Information Technology contractor for the State Department’s Office of Inspector General. In this role, Cheveers held a security clearance that allowed him access to certain sensitive information, and he was responsible for configuring the computers prior to the devices being distributed to U.S. government personnel.

Through the course of his criminal conduct, Cheevers admitted to stealing up to 16 Microsoft Surface Pro laptop computers. Cheveers then sold the stolen computers on Internet websites such as Craigslist and eBay from approximately July 2016 through February 2017 in order to profit from his fraudulent scheme.

Cheveers faces a maximum penalty of 10 years in prison when sentenced on June 21. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Steve A. Linick, Inspector General for the Department of State, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.  Assistant U.S. Attorney Raj Parekh and Special Assistant U.S. Attorney Katherine Celeste are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-64.

The announcement is available here.