The Iraq War Ain’t Over, No Matter What Obama Says

By Spencer Ackerman from Wired.com

President Obama announced on Friday that all 41,000 U.S. troops currently in Iraq will return home by December 31. “That is how America’s military efforts in Iraq will end,” he said. Don’t believe him.

Now: it’s a big deal that all U.S. troops are coming home. For much of the year, the military, fearful of Iranian influence, has sought a residual presence in Iraq of several thousand troops. But arduous negotiations with the Iraqi government about keeping a residual force stalled over the Iraqis’ reluctance to provide them with legal immunity.

But the fact is America’s military efforts in Iraq aren’t coming to an end. They are instead entering a new phase. On January 1, 2012, the State Department will command a hired army of about 5,500 security contractors, all to protect the largest U.S. diplomatic presence anywhere overseas.

The State Department’s Bureau of Diplomatic Security does not have a promising record when it comes to managing its mercenaries. The 2007 Nisour Square shootings by State’s security contractors, in which 17 Iraqi civilians were killed, marked one of the low points of the war. Now, State will be commanding a much larger security presence, the equivalent of a heavy combat brigade. In July, Danger Room exclusively reported that the Department blocked the Congressionally-appointed watchdog for Iraq from acquiring basic information about contractor security operations, such as the contractors’ rules of engagement.

That means no one outside the State Department knows how its contractors will behave as they ferry over 10,000 U.S. State Department employees throughout Iraq — which, in case anyone has forgotten,is still a war zone. Since Iraq wouldn’t grant legal immunity to U.S. troops, it is unlikely to grant it to U.S. contractors, particularly in the heat and anger of an accident resulting in the loss of Iraqi life.

It’s a situation with the potential for diplomatic disaster. And it’s being managed by an organization with no experience running the tight command structure that makes armies cohesive and effective.

You can also expect that there will be a shadow presence by the CIA, and possibly the Joint Special Operations Command, to hunt persons affiliated with al-Qaida. Defense Secretary Leon Panetta has conspicuously stated that al-Qaida still has 1,000 Iraqi adherents, which would make it the largest al-Qaida affiliate in the world.

So far, there are three big security firms with lucrative contracts to protect U.S. diplomats. Triple Canopy, a longtime State guard company, has a contract worth up to $1.53 billion to keep diplos safe as they travel throughout Iraq. Global Strategies Group will guard the consulate at Basra for up to $401 million. SOC Incorporated will protect the mega-embassy in Baghdad for up to $974 million. State has yet to award contracts to guard consulates in multiethnic flashpoint cities Mosul and Kirkuk, as well as the outpost in placid Irbil.

“We can have the kind of protection our diplomats need,” Deputy National Security Adviser Denis McDonough told reporters after Obama’s announcement. Whether the Iraqi people will have protection from the contractors that the State Department commands is a different question. And whatever you call their operations, the Obama administration hopes that you won’t be so rude as to call it “war.”

America's Costly War Machine

Published on Monday, September 19, 2011 by The Los Angeles Times

Fighting the war on terror compromises the economy now and threatens it in the future.

by Linda Bilmes and Joseph Stiglitz

Ten years into the war on terror, the U.S. has largely succeeded in its attempts to destabilize Al Qaeda and eliminate its leaders. But the cost has been enormous, and our decisions about how to finance it have profoundly damaged the U.S. economy.Wounded soldiers attend the opening of the Center for the Intrepid in San Antonio, Texas on January 29, 2007. To date, the United States has spent more than $2.5 trillion on the wars in Iraq and Afghanistan. (Ben Sklar / Getty Images)

Many of these costs were unnecessary. We chose to fight in Iraq and Afghanistan with a small, all-volunteer force, and we supplemented the military presence with a heavy reliance on civilian contractors. These decisions not only placed enormous strain on the troops but dramatically pushed up costs. Recent congressional investigations have shown that roughly 1 of every 4 dollars spent on wartime contracting was wasted or misspent.

To date, the United States has spent more than $2.5 trillion on the wars in Iraq and Afghanistan, the Pentagon spending spree that accompanied it and a battery of new homeland security measures instituted after Sept. 11.

How have we paid for this? Entirely through borrowing. Spending on the wars and on added security at home has accounted for more than one-quarter of the total increase in U.S. government debt since 2001. And not only did we fail to pay as we went for the wars, theGeorge W. Bush administration also successfully pushed to cut taxes in 2001 and again in 2003, which added further to the debt. This toxic combination of lower revenues and higher spending has brought the country to its current political stalemate.

There is only one other time in U.S. history that a war was financed entirely through borrowing, without raising taxes: when the Colonies borrowed from France during the Revolutionary War.

Even if we were to leave Afghanistan and Iraq tomorrow, our war debt would continue to rise for decades. Future bills will include such things as caring for military veterans, replacing military equipment, rebuilding the armed forces and paying interest on all the money we have borrowed. And these costs won't be insignificant.

History has shown that the cost of caring for military veterans peaks decades after a conflict. Already, half of the returning troops have been treated in Veterans Administration medical centers, and more than 600,000 have qualified to receive disability compensation. At this point, the bill for future medical and disability benefits is estimated at $600 billion to $900 billion, but the number will almost surely grow as hundreds of thousands of troops still deployed abroad return home.

And it isn't just in some theoretical future that the wars will affect the nation's economy: They already have. The conditions that precipitated the financial crisis in 2008 were shaped in part by the war on terror. The invasion of Iraq and the resulting instability in the Persian Gulf were among the factors that pushed oil prices up from about $30 a barrel in 2003 to historic highs five years later, peaking at $140 a barrel in current dollars in 2008. Higher oil prices threatened to depress U.S. economic activity, prompting the Federal Reserve to lower interest rates and loosen regulations. These policies were major contributors to the housing bubble and the financial collapse that followed.

Now, the war's huge deficits are shaping the economic debate, and they could keep Congress from enacting another round of needed stimulus spending to help the country climb out of its economic malaise. Many of these war debts are likely to continue to compromise America's investments in its future for decades.

For years, the public failed to adequately question how it was possible that we could spend and borrow so freely, with so few consequences. But now the painful legacy of these decisions has become clear. Throughout the past decade, Congress routinely approved huge "emergency" appropriations to pay for the wars. This process preempted the usual scrutiny and debate that accompanies large spending bills. In part, this is because the U.S. lacks the basic accounting tools necessary for informed debate. Our future debts from the war are not listed anywhere in the federal government's budget. We don't even know for certain where the money has been spent. The Pentagon hasn't produced a clean financial audit in the 20 years since government auditing began, nor has it developed an accounting framework that would allow an assessment of the future costs of current decisions. This has almost certainly increased the overall cost of the war.

Our response to Sept. 11 has weakened both the current economy and our future economic prospects. And that legacy of economic weakness — combined with the erosion of the credibility of our military power and of our "soft power" — has undermined, rather than strengthened, our national security.

Nearly 10 years into the Afghanistan war, the violence in that country shows little sign of abating. August was the deadliest month of the war yet for U.S. troops, and there were also multiple attacks on Afghan security forces, government officials and civilians. The surge in violence comes as NATO is drawing down and handing over security control to national forces. But tens of thousands of U.S. military personnel are scheduled to remain in Afghanistan through the end of 2014.

The costs of fighting the war on terror have already been far higher than they needed to be. The U.S. should not take on even greater war debt without understanding the true costs of continuing down that path.

© 2011 The Los Angeles Times

New Earmark Rules Have Lobbyists Scrambling

New Earmark Rules Have Lobbyists Scrambling
By ERIC LICHTBLAU
New York Times
Published: March 11, 2010

WASHINGTON — Jolted by a sudden tightening of the rules, lobbyists and military contractors who have long relied on lucrative earmarks from Congress were scrambling Thursday to find new ways to keep the federal money flowing.

“The playing field has changed dramatically,” said Michael H. Herson, a lobbyist in Washington whose firm, American Defense International, represents numerous defense industry contractors who have already put in their requests this year for earmark money.

Those clients, who along with hundreds of other businesses got $1.7 billion last year through the controversial practice of awarding earmarks, will now be barred from receiving money under a new policy adopted Wednesday by Democrats on the House Appropriations Committee.

House Republicans, seeking to outdo the Democrats in ethics reform, went even further Thursday by agreeing to swear off all earmarks, for both nonprofit and commercial organizations, for the next year.

“This is the best day we’ve had in a while,” said Representative Jeff Flake, an Arizona Republican who has been a fierce opponent of earmarks — no-bid contracts directed by lawmakers — but had found little support among Republican colleagues before this week. “In terms of us getting this moratorium, the stars were aligned. What the Democrats did certainly motivated the Republicans.”

Senate leaders, however, have not rushed to follow the House, a situation that would set up a clash when the two chambers try to reconcile their spending bills.

No one was willing to predict on Thursday how that confrontation might play out. Meanwhile, defense contractors and the “K Street” lobbyists in Washington who often represent them were planning new ways of packaging their financing requests — and trying to keep the revenue coming in.

Some firms talked of partnering with hospitals, universities and other nonprofit organizations in seeking federal money, an idea that Congressional officials said might not be allowed under the new rules. Others said they planned to become more aggressive about applying directly to the Pentagon and other federal departments and agencies, and not Congress, for grant money. Still others are warning their clients to diversify their financing sources and become less reliant on Washington.

“For firms that have made their living on getting earmarks for their clients, this is a sea change,” said Joseph M. Donovan, managing partner at Nelson Mullins Public Strategies Group, a Boston lobbying firm that represents about 50 private and public clients. “It fundamentally changes their business model.”

Mr. Donovan said his company had anticipated a sharp cutback in earmarks because of the political mood in Washington and began taking steps to help clients navigate the new landscape. That includes hiring an in-house writer to help them apply for federal grants directly from executive branch agencies instead of Congress.

Because that grant money is usually awarded based on competitive bids, he said it would be harder for smaller companies with promising research-and-development ideas. Contractors will have to be “more strategic” in their thinking, he said, “because I don’t want to be in the position of telling them that things are being done through a wink and nod and you’re just going to get a million dollars.”

In the Senate, some lawmakers have defended earmarks as a necessary tool for Congress to exercise the power of the purse and influence federal spending. Supporters say that for every “Bridge to Nowhere,” the Alaska earmark project that became infamous five years ago, there are worthy projects that get less attention.

As one example, supporters pointed to the earmarking of tens of millions of dollars in the 1990s to General Atomics and other military contractors for early development of what became the Predator program, the unmanned drones now used frequently in airstrikes in Afghanistan. Senator Daniel K. Inouye, the Hawaii Democrat who leads the Senate Appropriations Committee, said that if the House ban on commercial earmarks had been in effect then, “we would not have the Predator today.”

Limiting earmarks to nonprofit recipients is not necessarily a cure-all. For example, Representative John P. Murtha, the Pennsylvania Democrat famous for his earmarking largess, set up the Concurrent Technologies Corporation in his district in the 1980s as a nonprofit research center for metalworking, and he helped guide more than $1 billion in defense earmarks to it before he died last month.

Executives at Concurrent contributed frequently to Mr. Murtha’s campaigns. The group has come under scrutiny by F.B.I. investigators looking into pay-to-play allegations against the now-defunct lobbying firm P.M.A., which represented Concurrent and other clients that got earmarks.

Whether earmark money will dry up complete

DRT targeting taxes from military contracts

DRT targeting taxes from military contracts

Monday, 15 February 2010 05:15
by Therese Hart | Variety News Staff

THE Department of Revenue and Taxation has laws and regulations in place for companies doing business on Guam and those contracted on U.S. military installations and it is the department’s responsibility to make sure that all these companies are paying their taxes on island, tax director Art Ilagan said.

Contractors who do business on Guam are required to register with the Guam Contractor’s License Board and they must obtain clearances from DRT which would include the Collections Branch to make sure they do not have any unpaid taxes, said Ilagan in a letter to Speaker Judi Won Pat.

Ilagan said companies will not get clearance until all taxes are paid in full or they have entered into a payment installment agreement.

In a Jan. 20 memorandum, President Barack Obama directed the Internal Revenue Service to conduct a review of certifications of non-delinquency in taxes that companies bidding for federal contracts are required to submit pursuant to a 2008 amendment to the Federal Acquisition Regulation.

No info

The memo noted that too often federal contracting officials do not have the most basic information they need to make informed judgments about whether a company trying to win a federal contract is delinquent in paying its taxes.

Obama indicated that the federal government pays more than half a trillion dollars a year to contractors, yet reports by the Government Accountability Office state that federal contracts are awarded to tens of thousands of companies with serious tax delinquencies.

The total amount in unpaid taxes owed by these contracting companies is estimated to be more than $5 billion.

Ilagan said the federal government will go after off-island prime contractors. However, DRT foresees a problem of tracking subcontractors who do business on base.

Subcontracts

“Once they get the federal contract, they then subcontract out here on Guam to local contractors. We just have to control it here when the subcontractors get the contracts from the prime contractors. We have to track the subcontractors and even that is kinda hard to track. How do we know these subcontractors aren’t doing business on base?” said Ilagan.

Contractors who transact business solely on U.S. military installations on Guam are required to obtain a service license. They also are also require to obtain the necessary clearances with DRT which would include clearance from Collections Branch.

Ilagan said the Collections Branch is hard at work investigating these off-island companies with a service license to do business on military installations to make sure they are in compliance with the business privilege tax laws on Guam.

Daunting task

“It is a daunting task considering that for fiscal years 2008 and 2009, there were 649 and 644 contractors, respectively, listed on the federal government spending website for Guam alone,” Ilagan stated in a letter to Won Pat.

This list is a combination of local and off-island companies who either have a business license, contractor’s license or service license, Ilagan said.

Vice speaker B.J. Cruz is also concerned about Guam not being able to capture all local taxes owed by companies who will do business on Guam because of the military buildup.

Cruz has asked Congresswoman Madeleine Z. Bordallo to include language in the 2012 National Defense Authorization Act which would require that each construction contract to designate Guam as the originating site and that all associated income be designated possession source income without any special exemption.

Cruz also asked that the Department of Defense be specifically required to cooperate with tax officials on Guam.

Bordallo responded that she would consider Cruz’s request.

Guam prepares for increase in construction

Guam prepares for increase in construction

Posted: Feb 07, 2010 12:20 PM
Updated: Feb 07, 2010 2:54 PM

by Michele Catahay

Guam - While Governor Felix Camacho has requested for the Department of Defense to extend the buildup altogether, the Department of Labor and the Guam Contractors Association are working diligently to ensure the workforce is prepared. DOL Director Maria Connelly says while the governor has the desire to extend the buildup past 2014, she says the work will still be there but more time will be given to plan.

"We have been preparing ourselves even prior to the buildup. When I say 'preparing ourselves', it's really engaging and getting the federal officials and the local government officials and all the stakeholders involved because this isn't only the Department of Labor's responsibility, it is all our responsibility," she said.

For the last five years, DOL has been looking at its internal systems and building relationships with federal officials. To prepare for the buildup, Connelly says her agency has been offering annual workshops for employers and bringing in experts from the mainland to provide capacity building and discuss the laws. In addition, she says DOLA has been working with the Department of Education and the Guam Community College when it comes to encouraging individuals to take up apprenticeship programs.

"All those are evolving and as we continue to train our local people at the same time we also continue to make sure the processes are in place for employers to have assisted them with these temporary foreign hires to ensure those are in place," she said.

The Department of Labor is also tasked with working on compliance and accounting for and monitoring activity while workers are here.

In the meantime, Guam Contractors Association President James Martinez says they remain prepared for the buildup even if it happens in 2014. "We'll probably say that a little more time would be helpful but I think we've had ample time on the contractors side to prepare themselves for this buildup. We're already anxious to begin this buildup. I don't know what additional preparation could be put in place as a result of this delay, but I think for the most part, a lot of our contractors have all their ducks lined up, so to speak," he said.

Martinez says the GCA has been partnering with large construction companies from the mainland to help with projects outside the military bases. He said, "They may have the financial backing and the bonding capacity for some of these larger projects, but they're going to depend on our local companies for subcontracting work who have the local expertise who know how to deal with businesses here on Guam. It's a little different than doing business in the states then out in the middle of the Western Pacific, we have some logistical issues with shipping."

Martinez says the GCA offers safety trainings to prepare contractors for the massive buildup. In the meantime, he says he hopes construction work will continue beyond 2014.

RP contractors eye part of $15-B Guam project

RP contractors eye part of $15-B Guam project

By BERNIE CAHILES-MAGKILAT
November 25, 2009, 5:04pm

Filipino contractors are now vying to partake in the $15 billion U.S. military build-up in Guam, but are urged to undertake more training for workers to ensure there is enough manpower pool for the booming domestic construction industry.

This was revealed at a business forum Wednesday on “Opportunities in Guam for the Philippine Construction Industry” organized by the Philippine Constructors Association Inc. and the Bureau of Export Trade Promotion of the Department of Trade and Industry where Guam government officials have indicated the preference for Filipino skilled workers.

Guam Senator Judith P. Guthertz,, chairperson on Guam military build-up an homeland security, said Guam could hire 15,000 Filipino workers starting 2101 until 2014 when the build-up is supposed to be completed.

In expressing preference for Filipino workers, Guthertz traced the history of Guam and the Philippines revealing that Guam used to be a province of the Philippines during the Spanish colonization. At least 30 percent of Guam’s population is of Filipino ancestry and that Filipinos were in the forefront in the reconstruction of Guam after the World War II.

“We just don’t have enough manpower for massive military build-up,” Guthertz said.

She said the H2 Visa, which restricts the entry of foreign skilled workers, has been lifted by the U.S. government for Guam paving the way for the entry of foreign workers.

Guthertz, an alumna of the University of the Philippines, also doubted the projected 6,000 workers would really possible because these workers have settled already in Hawaii only to uproot their families to work in Guam.

The other sources of manpower for the Guam build-up would come from other neighboring islands in the Pacific but would not still suffice the huge requirement.

Guthertz said that for every $1 billion investments for infrastructure projects, this requires 5,000 workers.

The projected 15,000 jobs that would be created until 2014 do not yet include the projects to be funded by the Japanese government, which agreed to fund the relocation facilities for the U.S. navy that would be transferred from the U.S. naval base in Okinawa.

There would be over 8,600 US marines that would be relocated to Guam plus the US navy for an estimated 28 percent increase in Guam’s 173,000 population.

The military build-up would require new road networks, water and sewerage, power, housing, hospitals and other infrastructure. There will also be build-up off base.

'But work should start now'

'But work should start now'

Thursday, November 19, 2009
By Haidee V. Eugenio
Reporter

MILITARY OPPORTUNITIES ABOUND
$1.1B projects in FY 2010

Capt. Peter S. Lynch, commanding officer of the commanding officer of the Naval Facilities Engineering Command Marianas, briefs participants in yesterday's Guam/CNMI Military Contracting Opportunities Symposium about opportunities on Tinian in connection with the $15-billion, multi-year military buildup in Guam. (Haidee V. Eugenio) From practical tips that include being electronically savvy for online registration to working closely with firms now bidding for projects, CNMI contractors yesterday heard from experts how to take advantage of the opportunities that come with the $15-billion, multi-year military buildup in Guam.

Some 10,000 additional workers are also needed to build facilities in Guam, maximizing U.S. or local labor capabilities.

While most construction projects will be in Guam, there are opportunities for the CNMI government and private businesses, mainly the existing land leases on Tinian and the needed small arms training ranges also on Tinian for the initial buildup phase.

Opportunities for the CNMI also include providing logistical support services, public works, construction and environmental services, and hosting military personnel and their families for rest and recreation.

Contractors should also be on the lookout for other services needed by military personnel as well as the workers involving food supply, or as simple as haircut services.

“The ramp up is clear. The dollars are coming,” said Capt. Peter S. Lynch, commanding officer of the Naval Facilities Engineering Command Marianas.

Lynch was among the resource speakers in yesterday's Guam/CNMI Military Contracting Opportunities Symposium at the Saipan World Resort in Susupe.

Construction will start in 2010. Major construction projects in Guam in Fiscal Year 2010 alone are expected to reach $1.1 billion, double the figure in FY 2009, he said.

Of this amount, some $674 million will be for projects directly associated with the relocation of 8,000 Marines, as well as their families, from Okinawa to Guam.

Another $259 million will be for a hospital, while the other $174 million will be for other related projects.

Lynch cited other near-term opportunities in FYs 2010 and 2011, depending on funding and budget. These include an estimated $10 million maintenance dredging of the Apra Harbor, a $5 million to $10 million Apra Harbor seawall repairs, and airfield repairs at Andersen Air Force base worth $10 million to $15 million.

Evaluation criteria

Experts recommend CNMI contractors to either partner with established firms now bidding or will bid for military projects or start building their own capacity.

Lynch said contractors will be evaluated based on past performance, workforce housing and logistics, and small business utilization.

“The workforce housing and logistics such as providing medical services, food, dining, housing, safety, security and transportation can make or break [a contractor],” he said.

Roy Tsutsui, assistant defense representative for the Joint Region Marianas, said the opportunities for the CNMI include existing leased land.

On Tinian, for example, 58 percent of the land is leased by the U.S. military, while 100 percent of land on Farallon de Medinilla and near shore waters is used for military training.

On Saipan, 127 acres of land are used for the American Memorial Park and the Army Reserve compound.

He said there will be a need for training ranges on Tinian for the initial buildup phase.

Tsutsui also noted the creation of a CNMI Military Integration Management Committee to coordinate efforts for taking advantage of the opportunities brought by the buildup.

Getting started

Albert Sampson, small business advisor for NAVFAC Marianas, said companies that provide quality work for construction and services have the edge.

He said working with the U.S. Navy, for example, requires that a contractor is computer or electronically savvy to be able to register their company online.

“Your company should be registered with the Central Contractor Registration (www.bpn.gov). It's not enough that you are registered. Tell us what you do, and update your profile,” Sampson told the symposium participants.

To get started, contractors need to obtain a Data Universal Numbering System, and register with the Central Contractor Registration.

Carl Peterson, a member of the Guam Chamber of Commerce's board of directors, said “the CNMI has great opportunity” and it has to “think of possibilities.”

“We want to do this together. There's always a possibility of fabrication in the CNMI, or build interiors of houses or buildings here, put them in a box, and then ship them to Guam if that's economically sound. That remains a possibility,” he told he crowd.

Peterson also gave a rundown of myths surrounding the military buildup, including one that says the military will pay for everything, or that the buildup will destroy the islands' culture, or that the military will increase the crime rate in Guam.

Other resource speakers in the morning session included Capt. Michael Uva, supply officer at Fleet Industrial Supply Center, and Vera Topasna, program manager at the Procurement Technical Assistance Center Overview.

'Anxiety'

Lt. Gov. Eloy S. Inos, in his opening remarks, said that while the military buildup has caused a great deal of excitement and optimism in the Marianas, it has also caused anxiety and uncertainty about the “unknowns” associated with the troop relocation.

Top U.S. Department of Defense officials have visited the CNMI and Guam in the past months.

“Although the dialogue between the Department of Defense and regional leaders has been important, the most critical communication is with the community. It is with this in mind that the CNMI requested a symposium of this magnitude to be presented by the Department of Defense,” he said.

Inos also pitched the CNMI's written strategic plan, to leverage the islands' infrastructure, human resources, and natural resources “to maximize the opportunities specific to the CNMI community.”

The government awarded a $160,000 contract to a private consulting firm that came up with a document on what the CNMI could offer the U.S. Department of Defense as the region prepares for the military buildup.

The CNMI, being a U.S. territory and its capital island of Saipan only 120 miles from Guam, can provide alternate airport and seaport facilities that could be used to enhance training opportunities for deployment training, and operations and maintenance logistics function, the document said.

'Optimism'

Gregorio Q. Castro, general manager of SSFM International-Saipan Office, said the symposium allowed contractors “to see what's on the horizon” in connection with the military buildup, “and how much of economic impact it will have on us here in the CNMI.”

“As an engineering firm and construction management firm, SSFM wants to link up with major firms in order for us to get projects. We are working on linking up with them,” Castro said in an interview.

Castro was one of the estimated 200 symposium participants mostly from private companies representing a wide range of industries-engineering, architecture, construction services and supply, shipping, landscaping, human resources, automotive, and food catering services, among other things.

Castro, who is a Tinian resident, also expressed optimism that the need for small arms training ranges on Tinian will help boost the island's economy.

More than this, he said, Tinian's casino industry will provide a good place for military personnel and their families for rest and recreation.

“I believe they will not stay in Guam or Saipan for vacation where there will be lots of people. They will visit Tinian which is a quieter place,” he said.

Guam was selected for the military buildup because of its strategic location. Its location enhances military force flexibility, deterrence value, freedom of action, prompt global action, regional engagement and crisis response, said Tsutsui in his presentation.

The afternoon session included presentations by CNMI Commerce Secretary Michael Ada on the CNMI Military Integration Committee, and Saipan Chamber of Commerce incoming president Doug Brennan and incoming vice president Jim Arenovski on what the CNMI can offer the military and prime contractors.

Environmental impact statement

Lynch, in his presentation, said the draft Environmental Impact Statement, or EIS, of the Guam military buildup will be released later this week, for public comment.

The draft EIS consists of almost 4,000 pages and the appendices, another 4,000 pages.

Lynch said in January 2010, public meetings will be held on the draft EIS. Five of these public meetings will be in Guam, one on Saipan, and one on Tinian.

An EIS provides details of the possible environmental impacts of a federal action as required by the 1969 National Environmental Policy Act.

Symposium for 'doing business with the military'

Symposium for 'doing business with the military'

Saturday, November 14, 2009
By Haidee V. Eugenio
Reporter

Businesses and other entities that want to avail of contracting and business opportunities with the military are encouraged to attend Wednesday's symposium sponsored by the Office of U.S. Defense Representative for the CNMI, Guam, Palau and the Federated States of Micronesia.

Similar events have also been held in Guam in light of the $15-billion, multi-year military buildup resulting from the relocation of some 8,000 Marines from Okinawa to Guam, plus some 17,000 family members, and up to 20,000 federal construction workers.

The “Guam/CNMI Military Contracting Opportunities Symposium” will be held from 8am to 5pm at the Saipan World Resort in Susupe.

It is being co-hosted by the Naval Facilities Engineering Command Marianas, and the CNMI government.

Deputy Commerce Secretary Sixto Igisomar said yesterday the symposium is “important” for anyone wanting to do business with the military.

Topics will include U.S. military contracting, business opportunities available through military construction projects, and the military buildup.

Capt. Peter S. Lynch, commanding officer of NAVFAC Marianas and a captain at the U.S. Navy's Civil Engineer Corps, will be presenting an update and opportunities on the Guam military buildup.

Roy Tsutsui, executive director of the Joint Region Marianas, will be presenting on the Office of U.S. Defense Representative for the CNMI, Guam, Palau and the FSM.

Another resource person will be Vera Topasna, program manager of the Guam Procurement Technical Assistance Center, who will give a program overview.

Other speakers include Carl Peterson, who will present the Guam Chamber of Commerce's perspective on the military buildup; Rosalinda Watson, contracting officer at Fleet Industrial Supply Center Detachment Marianas; James Martinez, executive director of the Guam Contractors Association; Lt. Cdr. Darren Hale, Pacific Command plans officer; and Cdr. Keith Barton, assistant operations officer with NAVFAC Marianas.

Incoming Saipan Chamber of Commerce president Douglas Brennan and incoming vice president Jim Arenovski will be making a presentation on “What the CNMI can offer the military and prime contractors.” Jesse Sablan of the CNMI Contractors Association will also be introducing the organization at the symposium.

A complete copy of the program and the registration form can be accessed at the CNMI Department of Commerce website, www.commerce.gov.mp.

REPORT: Guam Contractors To Train Filipino Labor For Buildup

REPORT: Guam Contractors To Train Filipino Labor For Buildup

Written by Jeff Marchesseault, Guam News Factor Staff Writer
Monday, 16 November 2009 10:40

GUAM - Guam-based contractors will "serve as resource speakers" during government- and industry-sponsored training programs for Filipino construction workers. That, according to GMA News.

GMA reports that the Philippine Construction Association and the Department of Trade and Industry have coordinated the training with Guam contractors.

The article cites offshore projects as a growth opportunity for the sector and mentions $15 billion in new developments related to the transfer of Japan-based military. GMA refers to the transfer site as Hawaii, but the jist of the article suggests that it is actually referring to the buildup on Guam.

Read the GMA News.TV story, "Construction industry sees growth in activities", November 13, 2009.

What's Behind Abercrombie's Ammendment?

What’s behind the Abercrombie amendment?
Sunday, 12 July 2009 23:49 by Jayne Flores
The Marianas Variety

It’s a trade off: the long-awaited payment of war reparations to our dwindling number of survivors of the Japanese occupation, for a Hawaii-based wage rate for the buildup.

That seems to be the most logical reason behind Hawaii Rep. Neil Abercrombie’s two additional amendments to the National Defense Authorization Act for Fiscal Year 2010.

Abercrombie is running for governor, and if he can boost his state’s struggling economy by giving construction workers jobs on Guam that pay just as much as if they were working in Hawaii, it would be a large feather in his political cap. It’s a cap that, according to a candidate watchdog web site, has been paid for with contributions from the likes of Lockheed Martin, BAE Systems, and 21st Century Systems, all military contractor heavyweights.

On the other side, we’re getting to the point that if we don’t settle this war claims issue soon, there won’t be any WWII survivors left to receive the money.

Abercrombie’s first amendment requires that Hawaii construction wage rates, which are approximately double what construction workers on Guam are paid, will apply to all build-up related projects funded with money specifically earmarked for the build-up.

The second amendments says that not more than 30 percent of the total hours worked per month on a buildup construction project may be performed by foreign workers, or workers holding temporary work visas.

So we’ve now got requirements that the Defense Department has to pay everyone who works on a buildup project those high Hawaii wage rates, and on each of the jobs, 70 percent of the work hours have to be worked by U.S. workers.

Obviously, Abercrombie is trying to prevent jobs going to foreign workers while construction workers in his state and other states are out of work. His amendment makes perfect sense if you’re a senator watching unemployment rates skyrocket in your state, or watching your state hand out vouchers for payment because it is broke.

This amendment seems to strike fear in the hearts of contractors on Guam and the overall Guam business community. They’ve been collectively saying that doubling wage rates for these projects might kill the buildup, or cause a domino effect and increase the cost of living on the island. But would it?

The large contractors that will be paying these higher rates already pay similar rates in many states. According to www.payscale.com, journeyman electricians make an average of $25.44 an hour in the states. Carpenters make from $22.33 to $32.43, depending on where they work. So these contractors’ bids will reflect the Hawaii-based wage rates accordingly. It’s the Department of Defense that will have to fork out the big bucks.

Local contractors are not getting these jobs – that’s the word through the grapevine. They may get subcontracts, but they can work the higher wages into their subcontract bids. So the local contractors won’t actually have to pay these rates, because Abercrombie’s amendment is specific to the buildup, not to the prevailing wage rate on Guam.

What will happen, though, is that the buildup will create two classes of H-2 workers and local workers, those who work on federal projects and are paid the higher wages, and those who work on local projects and are paid Guam’s prevailing construction wage rates. This could cause some animosity among workers within a company, especially among foreign workers who might fight over who gets to work the 30 percent hours on federal projects.

The higher wage rate might actually work in Guam’s favor. Although stateside workers will probably send home a significant portion of their paychecks if they don’t move their families out here, rest assured, they’ll frequent local restaurants and other establishments, and spend more of their money here than would foreign workers, who as a general rule send home most of their paychecks.

The defense budget bill, including the war claims and Abercrombie amendments, is now in the U.S. Senate. What senators are going to have to decide is whether they want to increase the cost of the buildup in order to put more Americans back to work, or scratch the whole bill and start over. Or, they could take out Abercrombie’s amendments, or the war claims amendment, or both.

At this point, anything can happen. But having to deal with the higher buildup wages won’t be as devastating as will having the war claims legislation slip through our fingers once again.

If this is the deal – we should take it.

A Look at Layon

A Look at Layon
By John Davis
Published Dec 16, 2008
KUAM News

A group of local contractors with their eye on the prize for winning the bid for beginning stages of construction to be done at Layon, Inarajan got their potential moneys worth today by embarking on a three-mile hike through the area. TG Engineers president Tor Gudmundsen gave contractors an outline of where the road, landfill cells and earthwork will be done.

"We hiked over to this corner, the southwest corner of Cell 1, so that they could see the full site of the area that would be worked on for cells 1 and 2 and again this operation road alignment," explained Gudmundsen. He demonstrated how just outside of Cell 1 will lie Pond 3A, a storm drainage basin, that will act as a monitoring point and catch drainage and runoff, which will assist in eliminating further environmental impacts to the area.

Gudmundsen says as the landfill expands based on future needs, other basins will be built around future cells. "We've studied how the rainfall runoff discharges from the site now in it's natural condition," he continued, "and we want it to runoff and discharge in a very similar fashion as the site is developed so that we don't really change the discharge of storm water around the site perimeter."

Speaking of the need for future expansion, Layon will be able to hold more than just a pair of cells for solid waste disposal. The site actually provides for 11 cells to be constructed over the landfills projected 41-year lifespan.

But with no commitment from the federal government as to whether it will be a customer of GovGuam, Gudmundsen says although there's plenty of space at Layon for Uncle Sam's trash, the capacity plan might have to undergo some adjustments. "The sizing is based on information from 2004 and 2005 and that was before the military buildup was announced and we worked out a 41 years site capacity plan so that's subject to change now as the trash from the buildup and the Air Force and others might be also coming here," he told KUAM News.

Although we overheard certain contractors stating they might have some trouble submitting bids for the project within a short amount of time, those interested have until January 8 to submit their proposals.

Meanwhile, another field trip for interested bidders will be conducted next week.

Quitugua Remembered

Quitugua remembered: Family, friends mourn son of Guam killed in Iraq
By Bryan C. Sualog
Pacific Daily News
June 23, 2008

Christopher Albert Quitugua was set to start a new stage in his life when his life ended in Iraq, said his father, Victor Quitugua.

The former Mangilao resident, who was working for a civilian security company, was killed in Iraq during a non-combat accident June 19, according to his family.

He was 28.

According to Christopher Quitugua's grandparents, Albert A. Quitugua and Maria C. Quitugua, their grandson and three others were in a vehicle in a convoy when a tire blowout caused the vehicle to flip.

He was working for a civilian company that protected military VIPs in Iraq.

"He is a very dedicated boy who had a lot of energy and was starting another phase of his life with his wife."

Christopher Quitugua was married in March.

He's the 26th son of Micronesia to be killed since the War on Terror began in 2001. More than 4,100 American service members have died in Iraq and Afghanistan in the war.

His grandparents said Quitugua grew up on Guam and attended George Washington High School, but moved to the U.S. mainland to join his father in Los Angeles to finish out his senior year.

Maria Quitugua said her grandson loved to cook and attended culinary school for two years.
"When he got tired of that, he told his dad he was going to join the Army," she said.

4 years in the Army
Quitugua served four years in the Army. During his tour of duty, he went to both Iraq and Afghanistan.

Before leaving for Iraq, he was living in Miami with his father.

Maria Quitugua said she raised her grandson, so his death is especially difficult for her.

She said when her grandson was in middle school, he went to live with his parents in Arizona, but would call and ask to come back to Guam because he missed his grandmother and grandfather. She said he would call her and say, "Grandma, send me a ticket. I want to go to Guam. I don't like it here."

Maria Quitugua said it had been almost two years since she had seen her grandson. She spoke to him on Father's Day.

Christopher Quitugua was due to visit Guam this week.

Victor Quitugua said funeral arrangements for his son were still being made.

Gov. Felix Camacho expressed his condolences to the Quitugua family on Saturday. Delegate Madeleine Bordallo issued a statement yesterday.

"My thoughts and prayers go out to the family and friends of the late Christopher Quitugua, most especially to his wife, Cari, during this very difficult time," Bordallo said. "Christopher's service to our nation and our island will be honored and remembered always."