Afghanistan | The Contracting Education Academy

December 12, 2018 By AMK

Oversight of U.S. military’s food suppliers called into question after fraud indictment

Executives from a company responsible for providing food and water for deployed U.S. troops in Afghanistan have been charged with defrauding the government and creating a fake construction site to overstate progress on an $8 billion contract, the Justice Department said in a recently filed indictment.

The allegations came four years after the company’s predecessor pleaded guilty to criminal charges that it inflated prices for basic items that it sold to the U.S. military. Both cases emphasize how the U.S. military has struggled to curb abuses of U.S. defense spending in America’s longest-running foreign war as the U.S. military presence in Afghanistan enters its 17th year, analysts said.

On Nov. 27, the Justice Department charged Abdul Huda Farouki, Mazen Farouki and Salah Maarouf — three Virginia residents who worked with a Dubai-based company called Anham Fzco — with defrauding the U.S. military under an estimated $8 billion military supply contract.

Keep reading this article at: https://www.washingtonpost.com/business/2018/12/08/oversight-us-militarys-food-suppliers-called-into-question-after-fraud-indictment/

October 9, 2018 By AMK

Increased security risks may constitute a cardinal change to a contract

Former Secretary of Defense Donald Rumsfeld once explained that there are the known unknowns and the unknown unknowns. Some greeted that gnomic pronouncement with bemused smiles.

**Army Expeditionary Contracting Command**

But contractors operating in a contingency environment know exactly what he was talking about.

No mere mortal can accurately predict, much less price, all of the risks involved in supporting and accompanying the military in various hot spots around the world. Planate Management Group, LLC v. United States, a case currently before the Court of Federal Claims (COFC), is a good example.

In Planate, a contractor providing support services in Afghanistan has asserted claims for the cost of arming its in-theater personnel when the security situation changed dramatically for the worse.

In light of deteriorating security conditions in Afghanistan, including a fatal insider attack, the military issued a new security directive. To comply with that directive, the contractor purchased weapons to arm its in-theater personnel. The contractor submitted a claim to recover the costs of arming its personnel. The government denied the contractor’s claim, and the contractor filed suit at the COFC, alleging (among other things) that the changed security conditions amounted to a cardinal change. The COFC denied the government’s motion to dismiss for lack of subject matter jurisdiction because the contractor had properly presented its claim for a cardinal change to the contracting officer (CO).

Claims for cardinal changes to the contract are rarely successful. Although the court considered only whether it had jurisdiction to hear Planate’s allegations and has not yet addressed the merits of Planate’s cardinal change theory, the case offers an interesting and potentially promising approach for contractors to recover when they experience major changes to the circumstances under which they are performing.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=740122

May 4, 2018 By AMK

DoD Sec: Criminal charges likely amid probe into intelligence contract

Defense Secretary James Mattis has told lawmakers it’s probable that federal officials will file criminal charges as part of an ongoing investigation into a series of contracts the Army issued to help establish security forces in Iraq and Afghanistan.

**U.S. Secretary of Defense James N. Mattis**

The contracts were supposed to be used to help those nations build their own intelligence gathering capabilities, but audits thus far have pointed to tens of millions of dollars in potential fraud connected to at least one vendor, including for luxury vehicles and six-figure salaries paid to its employees who performed no discernible work.

The ongoing criminal investigation involves a series of agreements, beginning in 2007, that wound up costing $458 million.

According to an audit the Special Inspector General for Afghanistan Reconstruction published in July, the lion’s share of those funds went to a single subcontractor, New Century Consulting (NCC). But SIGAR concluded that because of poor recordkeeping and a reliance on vendors to grade their own performance, it’s almost impossible to determine whether the contracts’ objectives were ever met.

Keep reading this article at: https://federalnewsradio.com/acquisition/2018/04/mattis-criminal-charges-likely-amid-probe-into-intelligence-contract/

March 14, 2018 By AMK

COR sentenced to prison for soliciting $320,000 in bribes from Afghan contractors

A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan was sentenced on Mar. 8, 2018 to 100 months in prison for soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.

Mark E. Miller, 49, of Springfield, Illinois was also ordered to serve three years of supervised release following his prison sentence and forfeit $180,000 and a Harley-Davidson motorcycle. Miller previously pleaded guilty to a one-count information charging him with seeking and receiving bribes.

Miller admitted worked for the USACE from 2005 until 2015, including in Afghanistan from 2009 to 2012, and maintained a residence in Springfield during that time. From February 2009 to October 2011, Miller was assigned to a military base, Camp Clark, in eastern Afghanistan. He was the site manager and a contracting officer representative (COR) for a number of construction projects in Afghanistan.

On Dec. 10, 2009, the USACE awarded a contract worth approximately $2.9 million to an Afghan construction company for the construction of a road from eastern Afghanistan to the Pakistani border. This contract later increased in value to approximately $8,142,300. Miller oversaw the work of the Afghan company on this road project, including verifying that the company performed the work called for by the contract and, if so, authorizing progress payments to the company by the USACE.

As part of his guilty plea, Miller admitted that, in the course of overseeing the contract with the Afghan company, he solicited from the owners of the company approximately $280,000 in bribes in return for making things easier for the company on the road project, including making sure the contract moved along and was not terminated. He further admitted that, after the contract was no longer active, he solicited an additional $40,000 in bribes in return for the possibility of future contract work and other benefits.

This matter was investigated by the Federal Bureau of Investigation, the Defense Criminal Investigative Service, the Special Inspector General for Afghanistan Reconstruction, and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, with assistance from the U.S. Postal Inspection Service, Fort Worth Division. The Dept. of Justice Criminal Division’s Fraud Section and the U.S. Attorney’s office of the Central District of Illinois prosecuted this case.

Source: https://www.justice.gov/opa/pr/former-employee-us-army-corps-engineers-afghanistan-sentenced-prison-soliciting-approximately

January 10, 2018 By AMK

Pentagon task force’s $675 million in contracts to rebuild Afghanistan found wasteful

The Defense Department’s now-defunct business task force for rebuilding war-torn Afghanistan has again been found to have ineffectively spent its budget, devoting more than half of $675 million in contract obligations to indirect or support costs and favoring sole-source providers, a watchdog found.

The Special Inspector General for Afghanistan Reconstruction on Tuesday released its latest critique of the Pentagon’s Task Force for Business and Stability Operations, which worked from 2010-2014 to hire companies to help the Afghans with economic development in such areas as mining, irrigation and banking.

That body was disbanded in 2015, with many of its projects incomplete or turned over to the State Department and the U.S. Agency for International Development.

Keep reading this article at: http://www.govexec.com/contracting/2018/01/pentagon-task-forces-675-million-contracts-rebuild-afghanistan-found-wasteful/145077

Former Secretary of Defense Donald Rumsfeld once explained that there are the known unknowns and the unknown unknowns. Some greeted that gnomic pronouncement with bemused smiles.

Defense Secretary James Mattis has told lawmakers it’s probable that federal officials will file criminal charges as part of an ongoing investigation into a series of contracts the Army issued to help establish security forces in Iraq and Afghanistan.

A former employee of the U.S. Army Corps of Engineers (USACE) based in Afghanistan was sentenced on Mar. 8, 2018 to 100 months in prison for soliciting approximately $320,000 in bribes from Afghan contractors in return for his assistance in U.S. government contracts.

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