Questionable findings found in Blackwater contracts

[RamboLiberal]

Source: Virginian Pilot

Federal investigators are raising new questions about whether an affiliate of the controversial security firm Blackwater Worldwide should have received more than $100 million in federal contracts set aside for small businesses.

In a memorandum made public Monday, internal investigators for the Small Business Administration said the agency “did not adequately explain” how it concluded that Blackwater falls within size limits for small-business contracts.

The SBA also disregarded evidence in its own records suggesting that “independent contractors” hired by Blackwater to do security work for the State Department in Iraq were actually under Blackwater’s supervision, the memo charged.

The workers’ status is critical because federal law generally limits small-business contracts to firms with fewer than 1,500 workers. Blackwater would be over that limit if the workers were classed as employees of the firm rather than independent contractors.

The memo, written by Glenn Harris, counsel to SBA inspector general Eric Thorsen, refers to “potential misrepresentations by Blackwater” but does not accuse the Moyock, N.C.-based firm of breaking federal laws or improperly obtaining contracts.



Read more: http://hamptonroads.com/2008/07/questionable-findings-found-blackwater-contracts

---

What a surprise! :sarcasm:

[redqueen]

1. Crony capitalism... we should have learned from Japan.

How long did Japan's stagnation/recession last?

[rumpel]

2. size standards is much lower...

Before bush it was, as I recall, 150 employees...So I checked
maximum is 500 now for manufacturing and 100 for Wholesale Trade.
Albeit I would not be surprised if there are loopholes...
There is also a cap for revenue size...
see:
http://www.sba.gov/services/contractingopportunities/sizestandardstopics/summarywhatis/index.html

and sure enough depending on the NAICS of the business classification:
http://www.sba.gov/services/contractingopportunities/sizestandardstopics/tableofsize/index.html

[redqueen]

3. Don't see how KBR would qualify with a revenue cap...

[Acadia Blue]

4. Bush stole the treasury and gave it to his buds.