The recent energy boom in Africa has been one of the main contributors to a huge increase in military spending in the region. International Defense companies have, consequently, begun targeting Africa markets, as the US and European defense markets suffer from drastic spending companies.

According to UPI, the current hot spots are the Horn of Africa, the oil-rich Mediterranean belt and the Sahel region in the North. Former Zimbabwean Army Officer, Col. Joseph Sibanda, singled out Mozambique, Tanzania, Uganda and Kenya as the key areas to focus on. The recent spate of terrorist attacks in countries such as Kenya and Nigeria illustrate the need for a discussion of the latest strategies and technologies to combat security issues and terrorism, and have encouraged countries such as Ghana to adopt a more vigorous stance against security issues.

Defense contractors have managed to not only stay afloat but also thrive in a climate of government closure and massive cuts to the Pentagon’s budget, continuing to rake in billions upon billions of dollars in profits.

Under the terms of sequestration, the Department of Defense is slashing budgets left and right, with about $41 billion cut in 2013 alone. That hasn’t prevented the major defense contractors — including Lockheed Martin and Northrop Grumman — to continue to post huge profits according to Bloomberg. Northrop Grumman in particular has had a surprisingly good year, showing a 56 percent increase in the price of its shares. In the third quarter, Northrop’s net income grew to $497 million, compared to $459 million for the same period last year.

A large number of civilian employees would be temporarily furloughed, according to the Pentagon. A shutdown lasting less than two weeks would not hurt big defense contractors, which can survive temporarily without federal contract payments, said ratings agency Standard & Poor's. But a longer shutdown could weaken the financial profiles and liquidity positions of smaller defense contractors.

Under Secretary of Defense for Acquisition, Technology and Logistics Frank Kendall directly addressed the issue:

“In the event of a lapse, vendors working on contracts with funds already appropriated … should continue to work unless directed otherwise by their contracting officer. In situations where Government personnel are necessary to oversee or inspect work, the local Government managers will make the decision on whether or not that work will be accomplished and direction will be provided by the contracting officer.”

While the government use of security contractors in support of operations in Iraq and Afghanistan has been the source of simmering controversy for several years, the issue has now come to a rapid boil. Over the past year, numerous allegations have surfaced regarding excessive use of force by security contractor personnel.

These allegations have led to new efforts to permit the exercise of criminal jurisdiction and to new proposals to increase and unify oversight over such personnel. As often seems to be the case, reactionary changes during times of high profile allegations and media attention appear to lack thorough analysis and planning, and none will completely solve the issues caused by contracting for security services.

Cathleen D. McGrade, age 64, was a contractor working for the State Department’s office of Overseas Building Operation and husband Brian C. Collinsworth, age 47, of Stafford, Va., pleaded guilty today to major fraud against the government, conspiracy to launder monetary instruments, and engaging in unlawful monetary transactions. Sentencing scheduled for November 2013.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Harold W. Geisel, Acting Inspector General for the Department of State; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Section, Washington, D.C. Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.

The Obama Administration signaled tentative plans to support a new plan to legally bind government contractors into complying with international humanitarian law, human rights law, arms control and disarmament law, as well as other requirements of the United Nations (UN) Security Council.

The scheme applies to private military and security services contractors (and their subcontractors) doing business with the United States Department of State. No details were given about applying the new plan to all federal procurement agencies or encouraging state procurement agencies plan to do the same.

KBR Inc. invoked federal laws shielding contractors during wartime in an effort to avoid a Texas trial over injuries claimed by troops who were exposed to toxic chemicals while guarding a work site in Iraq.

KBR argued today before a U.S. Court of Appeals panel in El Paso, Texas, that contractor-on-the-battlefield statutes act as a firewall to litigation. Without that protection, KBR and other contractors might abandon military support work altogether, the company has said.

BP sued the U.S. government over a decision barring the company from new federal contracts to supply fuel and other services following the company's agreement to plead guilty to criminal charges arising from the 2010 Gulf of Mexico oil spill disaster. The British oil giant said in court papers filed in Houston, TX federal court that the Environmental Protection Agency's decision to suspend the company from such contracts and its continued enforcement of that order is arbitrary, capricious and "an abuse of discretion."

An Afghan construction company sued DynCorp International in Virginia federal court last week, alleging that after it subcontracted with DynCorp to build barracks and related facilities, the military contractor withheld payments and assessed improper back charges.

Omran Construction Consulting & Engineering claims that DynCorp is holding out on it for work it did under DynCorp’s $47.5 million contract with the U.S. Army Corps of Engineers to construct various military facilities for the Afghan National Army.

Special Inspector General for Afghanistan Reconstruction (SIGAR) investigation of large-scale corruption in Afghanistan led to the Department of Justice freezing more than $63 million in U.S. government funds, allegedly obtained through fraudulent means, located in bank accounts held in Afghanistan and in correspondent banks in the United States and abroad. The bank accounts are owned by Hikmatullah Shadman, an Afghan trucking contractor, who according to court documents allegedly defrauded the U.S. of more than $77 million by charging inflated prices for trucking contracts to deliver U.S. military supplies. These trucking contracts were allegedly obtained through bribes, kickbacks, and bid-rigging, according to court papers.

"We are determined to use all possible means to recover stolen taxpayer money. I'm proud of my agents, who worked closely with the Department of Justice on this groundbreaking achievement. This hits the criminals where it hurts. SIGAR will stop at nothing to follow this money trail wherever it leads," said Special Inspector General for Afghanistan Reconstruction John F. Sopko.

The Eastern District of Virginia dismissed a False Claims Act complaint brought by the government and a whistleblower, finding that the government failed to adequately plead that it relied on allegedly false marksmanship tests when it paid a government contractor. U.S. ex rel. Badr v. Triple Canopy, Inc., Case No. 1:11-cv-288 (E.D. Va. June 19, 2013).

Triple Canopy had a contract with the government to provide security services at United States military bases in Al Asad, Iraq. As part of the contract, Triple Canopy was required to ensure that all of its personnel maintained certain weapons qualifications. Triple Canopy brought 332 guards from Uganda to work at the bases. According to the allegations of the complaint, it quickly became clear to Triple Canopy that the guards could not meet the minimum weapons qualification requirements. As a result, the complaint alleges, Triple Canopy began to falsify the guards’ scorecards.

CONTRACTOR SUPPORT OF U.S. OPERATIONS IN THE USCENTCOM AREA OF RESPONSIBILITY TO INCLUDE IRAQ AND AFGHANISTAN

BACKGROUND:  This report updates DoD contractor personnel numbers in theater and outlines DoD efforts to improve management of contractors accompanying U.S. forces.  It covers DoD contractor personnel deployed in Afghanistan (Operation Enduring Freedom (OEF); Iraq; and, the U.S. Central Command (USCENTCOM) area of responsibility (AOR).  

KEY POINTS: In 3rd quarter FY 2013, USCENTCOM reported approximately 129,100 contractor personnel working for the DoD in the USCENTCOM AOR.  This total reflects a slight decrease from the previous quarter.  The number of contractors outside of Afghanistan and Iraq make up about 15% of the total contractor population in the USCENTCOM AOR.  A breakdown of DoD contractor personnel is provided below:

STUTTGART, Germany — Hundreds of workers angry over mass layoff plans are on strike and staging daily protests outside Camp Lemonnier, the strategically placed U.S. military base in Djibouti on the Horn of Africa, officials said Wednesday.

In June, the military entered into a $35 million contract with base support services provider KBR, which took over responsibility for operations from a previous contractor. KBR planned to cut its base operation support staff from 1,000 to 600 workers, who conduct a range of activities such as janitorial, laundry and food service work, according to a U.S. Navy spokesman, who said the previous contract cost $80 million per year. That plan prompted the remaining 600 workers to strike.