For Immediate Release
March 5, 2007
Contact: Stacie Paxton/Mark Paustenbach - 202-863-8148
Dean: Bush Administration Played Politics With Troops' Care
Washington, DC - After news reports exposed the deplorable conditions at the
outpatient facilities at Walter Reed Army Hospital, it has been further
revealed that a number of services for our veterans were privatized, leading to
serious problems at the hospital. According to a letter written by Rep. Henry
Waxman, Walter Reed awarded a five-year, $120-million contract to IAP Worldwide
Services, a company criticized for failing to properly execute a contract to
deliver ice to areas devastated by Hurricane Katrina. The company is also run
by former Halliburton official Al Neffgen who defended the company's gas price
gouging in Iraq in testimony before Congress.
The IAP contract led to an "exodus of 'highly skilled and experienced
personnel'" according to information cited in Waxman's letter.
3/3/07] And what once was a staff of 300 government employees was whittled down
to only 50 private workers employed for support services at Walter Reed. These
revelations come after years of underfunding and neglect of the Veterans
Administration by Washington Republicans.
Democratic National Committee Chairman Howard Dean issued the following
statement:
“It’s an unconscionable disgrace that after serving so bravely in Iraq our
troops would be subjected to these abysmal conditions and treated so callously
when they needed care. The President's stubborn commitment to a failed strategy
in Iraq has sent troops into battle without proper lifesaving equipment or
training, and the incompetent mismanagement has put their lives and well being
at risk when they come home. The Administration's outsourcing agenda has
disgracefully put politics ahead of quality care for our troops and veterans.
Democrats are committed to getting to the bottom of this tragedy and will make
sure our troops have every resource available from deployment to when they
return.”
Privatization Resulted In Understaffed Walter Reed
House Committee to Review Claims By Walter Reed Commander. According to a
letter by Rep. Henry Waxman, A memorandum from Walter Reed Commander Peter
Gabraldi "describes how the Army's decision to privatize support services at
Walter Reed Army Medical Center was causing an exodus of 'highly skilled and
experienced personnel . As a result, according to the memorandum, 'WRAMC Base
Operations and patient care services are at risk of mission failure.'" By Rep. Waxman to Maj. Gen. George Weightman, 3/2/2007]
IAP Privatization Resulted in Loss of Experienced Personnel Who Were Not
Replaced. "We have learned that in January 2006, Walter Reed awarded a five-
year $120 million contract to a company called IAP Worldwide Services for base
operations support services, including facilities management," Waxman
continues. "IAP is one of the companies that experienced problems delivering
ice during the response to Hurricane Katrina." . Before the contract, over 300
federal employees provided facilities management services at Walter Reed,
according to the memorandum, but that number dropped to less than 60 the day
before IAP took over. "Yet instead of hiring additional personnel, IAP
apparently replaced the remaining 60 federal employees with only 50 IAP
personnel," Waxman writes. Weightman, 3/2/2007]
Army was Warned of Problems at Walter Reed but Denied Staffing Requests. The
memo signed by Garibaldi requests more federal
employees because the hospital mission had grown "significantly" during the
wars in Iraq and Afghanistan. It states that medical command did not concur
with their request for more people. "Without favorable consideration of these
requests," Garibaldi wrote, " Base Operations
and patient care services are at risk of mission failure." 3/3/2007]
IAP's Previous Record Of Failure
IAP Involved in Katrina Ice Fiasco. Separately, the Pentagon's inspector
general is auditing an Army Corps of Engineers contract used to provide ice
after Hurricane Katrina and is examining another to install temporary roofs on
homes after the disaster. The ice contract with IAP Worldwide Services Inc.,
based in Cape Canaveral, Fla., came under scrutiny after reports emerged that
the Corps of Engineers ordered twice as much ice as it needed in the days after
the disaster. Millions of pounds of ice were sent to storage, some as far away
as Maine.
IAP Run by Former Halliburton Executives. IAP, which is based in Cape
Canaveral, Fla., has more than $1 billion a year in revenue and more than 5,000
employees around the world, according to the company's Web site. It is owned by
Cerberus Capital Management LP, a private asset management firm. The firm has
grown exponentially in recent years in part because of contracts in Afghanistan
and Iraq. It recently recruited high-ranking Halliburton Co. official Al
Neffgen to be its chief executive. IAP's President is Dave Swindle. Prior to
IAP, Swindle was Vice President, Business Acquisition and National Security
Programs and an Officer for Kellogg Brown and Root. In this capacity, he was
responsible for the Government and Infrastructure Division's Business
Development Operations for KBR Americas, Asia-Pacific, Europe-Africa, and the
Middle East.
IAS Chief Executive Defended Iraq Gas Price Gouging. According to Rep. Waxman's
Letter, IAS "is led by Al Neffgen, a former senior Halliburton official who
testified before our Committee in July 2004 in defense of Halliburton's
exorbitant charges for fuel delivery and troop support in Iraq." to Maj. Gen. George Weightman, 3/2/2007
###
Paid for and authorized by the Democratic National Committee, www.democrats.
org. This communication is not authorized by any candidate or candidate's
committee.
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