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

 

Advertisements

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

Help Fund the Blog |  Countdown:  6 Days to Go

______________________________________

 

 

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.

Snapshot: @StateDept Workforce Distribution by Employment Category (February 2019)

Posted:12:52 am EST
Updated: 10:08 pm PST with link to full HR fact sheet

 

Via state.gov:

The Department relies on Locally Employed (LE) staff to support its global mission. LE Staff, which includes contractors overseas, accounts for 58 percent of the workforce. The Department’s American Government workforce, which includes career full-time FS and CS employees as well as temporary employees, constitutes approximately 31 percent of the workforce. The remaining 11 percent is composed of domestic contractors. Over the last few years, the workforce distribution has remained about the same. The State Department indicates that it employs a workforce of over 80,000 employees including contractors. 

 

#

Sources: Major Personnel Cuts Coming For U.S. Mission Iraq

Posted: 4:28 am EST
Updated: 5:01 am EST

 

It looks like US Mission Iraq is in for another big round of staff reduction.  Sources indicate that staff cuts could be as much as a third. People reportedly are being told to return home. Like when?  Now? Like there’s no glide path here …  just pack up and go home now?

Update: We just learned that assigned personnel were notified last week to find other jobs.

If folks time this really well, Secretary Pompeo can then go talk to Congress about cost savings by the time he is up there in May for the State Department Budget Request for FY2020.

So we want to take a look at staffing numbers. We have two publicly available staffing numbers to work with, both a bit outdated so  our numbers are speculation at this time. One is from 2013 when Embassy Iraq told State/OIG that it planned to reduce staffing from 11,500 in January 2013 to 5,500 in January 2014. That’s over five years ago, and we don’t know if US Mission Iraq was successful with this reduction plan. Let’s say post was successful, and staffing was down to 5,500 in early 2014. A reduction by a third means moving out about 1,800 people out of Iraq, which presumably includes not just direct-hire employees but also contractors.

Our second staffing number is from a January 2016 solicitation posted on FedBiz for Medical Service Support Iraq II which indicates the following:  “The BDSC Large Diplomatic Support Hospital not only provides primary care to personnel at BDSC, but also may serve as the secondary and trauma care center for the patient population within U.S. Mission Iraq (4300 – 5800 personnel).”

If we take the lower end of that bracket at 4300, a reduction by a third means moving out approximately 1400 people out of Iraq and and back to domestic assignments/regular postings for direct-hire employees. Staff reduction could also means less protective security requirements, reduction in number of contractors providing various support functions, as wells as a reduction in the number of hospitals, air flights, food operations and logistics, laundry services, warehouse operation, vehicle maintenance services, and a long host of other support services.

Another way we’re looking at this is to go back to a 2010 State/OIG report that estimated a minimum of 15 and possibly up to 60 security and life support staff to support one substantive direct-hire position. For instance, if there are some 350 direct-hire employees and you slash a third of that staff, the corresponding security and life support staff could also be reduced by a third, which means a reduction of about 1700 security and life support staff (using the minimum 1:15 support ratio). 

We do not know at this time how many direct-hire personnel will actually be affected by these cuts, or how many assignments — onward assignments, linked assignments, or how many contractors — will be impacted. We will update if/when we know more. There’s also a nagging question in our noggin — after Iraq, where else?

Maybe time to do a trip down the blog’s memory lane. Back in 2010, we posted US Embassy Baghdad: The “civilianization” of the U.S. presence in Iraq and its peskiest details.  At that time, State/OIG notes:

The number of security and life support personnel required to maintain this limited substantive staff is huge: 82 management, 2,008 security, 157 aviation, and 1,085 life support personnel. In other words, depending on the definition of support staff, it takes a minimum of 15 and possibly up to 60 security and life support staff to support one substantive direct-hire position. To put this into perspective, a quick calculation of similar support ratios at three major embassies (Beijing, Cairo, and New Delhi) shows an average of four substantive officers to every three support staff (4:3) in contrast to 1:15 to 1:60 in Iraq.

The following year, the US Embassy in Baghdad made news on its planned staffing expansion from 8,000 to 17,000 (see US Embassy Iraq: From a staff of 8,000 to 17,000?).

In 2011, we did US Mission Iraq: Not DOD’s Giganotosaurus Footprint, But a Super Embassaurus For Real.  We  had a deep sense of humor then. That same year, we saw the opening of a new post in Iraq (see Newest US Consulate General Opens in Basrah, Iraq)

In 2012, US Mission Iraq made news again as news on a reduction in staffing by as much as as half was splashed on the headlines (see US Embassy Iraq Staffing: To Slash or Not to Slash, That is the Question).  There was also BLISS (US Mission Iraq: Get ready for BLISS… no, not perfect happiness — just Baghdad Life Support Services.

In 2013, we did a Twelve Things You Might Not Know About the Largest Embassy in the World.  That same year, there were various embassy closures (see Intel Signs of Al Qaeda Plot in the Making: U.S. Embassy Closures — Sunday, August 4.

In 2013, the State Department told the State/OIG: “The Embassy is taking steps to reduce the mission’s headcount from over 11,500 in January 2013 to 5,500 by January 2014.

The year 2014 saw the partial temporary relocation of embassy staff to Basra, Erbil, and Amman, Jordan (U.S. Relocates More Baghdad/Erbil Staff to Basrah and Amman (Jordan), Updates Aug. 8 Travel Warning  (2014); US Mission Iraq: Now on Partial “Temporary Relocation” To Basra, Erbil & Amman (Jordan)

In spring 2015, a bomb exploded outside the US Consulate in Erbil, an attack claimed by ISIS (see Bomb Explodes Outside US Consulate Erbil in Northern Iraq, ISIS Claims Attack (Updated).

In the fall of 2015, the State Department updated its regulations for danger pay. All posts in Iraq were designated danger pay post at the 35%, the highest bracket (see New Danger Pay Differential Posts: See Gainers, Plus Losers Include One Post on Evacuation Status)

A January 2016 FedBiz solicitation estimated U.S. Mission Iraq personnel as between 4300– 5800 people.

In 2016, we blogged about the new folks leading the various posts under US Mission Iraq (see @StateDept Summer Rotation Brings New Faces to the U.S. Mission in Iraq.  That same year, the US Embassy in Baghdad issued a warning on possible collapse of Iraq’s Mosul Dam. See also Failure of Iraq’s #Mosul Dam Would Likely Cause “A Catastrophe of Biblical Proportions”.  Whatever happened to that? See this.

In June 2017, we learned that the State Department under new Secretary of State Rex Tillerson planned to close down the U.S. Consulate General in Basrah (see U.S. Consulate General #Basrah, Iraq: Six-Year Old Diplomatic Outpost Faces Closure).

Also in June 2017, the State Department awarded a $422,470,379.00 contract for the construction of the New Consulate Compound in Erbil, Iraq (NCC Erbil). @StateDept Awards $422M Contract For New Consulate Compound in Erbil, Iraq.

In September 2018, fifteen months after we blogged about the planned closure of Consulate Basrah under Tillerson (at that time we were told the planned closure had no timeline), the State Department, under the new leadership of Mike Pompeo ordered the mandatory evacuation for US Consulate General Basrah in Southern Iraq. Secretary Pompeo blamed Iran, and cited “increasing and specific threats and incitements to attack our personnel and facilities in Iraq.”

On October 18, 2018, the Department of State ordered the temporary suspension of operations at the U.S. Consulate General in Basrah.

In November 2018, President Trump nominated career diplomat Matthew Tueller to be  the next U.S. Ambassador to Iraq.   The nomination has been resubmitted to the SFRC on January 16, 2019 where it remains pending as of this writing. It looks like the SRFC is not in any great hurry to hold a confirmation hearing.

That’s where we are. Still remains to be seen what kind of budget allocation we’re going to see in the FY2020 budget proposal  for US Mission Iraq, or what cost savings they’re looking at when this reduction is officially unveiled.  It would also be interesting to see if this is the start of the end of the Iraq tax on diplomatic personnel and facilities worldwide.

#