Blackwater Firm Gets $120M U.S. Gov't Contract

Topics: News

This picture shows the website of U.S. Training Center, a business unit of the private security firm formerly known as Blackwater Worldwide.

(Credit: CBS)

CBS News has learned in an exclusive report that the State Department has awarded a part of what was formerly known as Blackwater Worldwide a contract worth more than $120 million for providing security services in Afghanistan.

Private security firm U.S. Training Center, a business unit of the Moyock, N.C.-based Blackwater, now called Xe Services, was awarded the contract Friday, a State Department spokeswoman said Friday night.

Under the contract, U.S. Training Center will provide "protective security services" at the new U.S. consulates in Herat and Mazar-e-Sharif, Afghanistan, the spokeswoman said. The firm can begin work "immediately" and has to start within two months. The contract lasts a year but can be extended twice for three months at a time to last a maximum of 18 months.

Should the firm fulfill all 18 months available in the contract, it will be paid a total of $120,123,293, the spokeswoman said.

The awarding of the contract comes just more than four months after the government of Iraq ordered hundreds of Blackwater-linked security guards to leave the country within seven days or face possible arrest.

The Justice Department is also trying to prosecute a case against five Blackwater guards who had opened fire on a crowded Baghdad street in 2007. Last December, a federal judge dismissed the U.S. government's case against the guards in the deaths of unarmed Iraqi civilians killed in the shooting because prosecutors used sworn statements the guards gave under a promise of immunity. Federal prosecutors are continuing to appeal the dismissal.

The Justice Department's case or Blackwater's expulsion from Iraq didn't block U.S. Training Center from bidding on the multi-million dollar contract, the State Department spokeswoman said.

"Under federal acquisition regulations, the prosecution of the specific Blackwater individuals does not preclude the company or its successive companies and subsidiaries from bidding on contracts," the spokeswoman said. "On the basis of full and open competition, the department performed a full technical evaluation of all proposals and determined the U.S. Training Center has the best ability and qualifications to meet the contract requirements."

Two other companies submitted bids for the contract, the spokeswoman said; however, she could not name either of U.S. Training Center's competitors when reached Friday night.

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by tamgio December 7, 2011 7:11 PM EST: ....and then yesterday several months after all of the Blackwater bashing there was a stream of bombings in major cities near worship temples in Afghanistan. My husband was able to get me an e-mail to let me know he was ok and he was back to buisness as usual. He has been gone since July and won't be home to be with our 2 year old and I until the begining of February. Soon after he is on US soil he will have to go for more training and continuing education. The baby and I travel with him to the different states where he must go to schools to keep his certifications current.He has earned his position with Blackwater. He will be home for a month, and then be deployed again. I asked him ONCE to "please stay with us". His immediate answer was "They need me." This is our family. This is how we live. My husband is a kind gentle man. An excellent father. He is an honorable man.He not only protects diplomats, he teaches citzens of other countrys. Blackwater is deployed to help reestablish stability. The intelligence level of these workers is amazing. I am proud of the men and women who continue to serve our country. Before being too harsh. THINK and REMEMBER...THIS IS WAR. If you are not there, and you love your freedoms. The least you can do is think about what you are saying. The people you are talking about are all educated and highly trained. They have given to our society. They have earned our respect!; Reply to this comment

by gahmer June 23, 2010 6:48 PM EDT

Soldiers make eighteen thousand dollars a year. What they do every day is more dangerous than anything Blackwater does, so where's their one hundred and twenty million dollar contract? I thought when we got rid of Bush, we'd also be rid of Blackwater. What a waste of taxpayer money.

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by grunt4451 July 7, 2010 8:09 AM EDT: Hey idiot. All of Blackwater are former US Military combat vets who have served honorably, and received numerous awards and citations. Including myself having served in Iraq and Afghanistan. Also about 2% of "soldiers" have jobs that put them in DIRECT COMBAT with the enemy. EVERY Blackwater contractor runs in and out of the red zone DAILY. BW provides a service, and honorable one. They fill spots of DOS Agents. Its cost the US "tax payer" 1 million dollars a year to keep a DOS Agent in a combat zone. While a DOS Contractor (like BW) cost less than half that. Do your research.


by Leaderless June 20, 2010 9:10 PM EDT: Terrorist, enemy of the country and liberal hates Xe (Blackwater).
So giving them the contract was the right moves!; Reply to this comment

by 13justme13 June 20, 2010 11:54 AM EDT

by Acharn June 19, 2010 9:31 PM EDT
Oh, bull puckey. Rules of engagement have nothing to do with it. Since Reagan the people who want to destroy government have been diverting jobs to their buddies in "private industry." So we end up paying twice as much to get the job done. Granted, hiring contractors frees up troops for combat, but it also removes jobs that combat troops could fill as a rest in between deployments. I find you use of the term "Anointed One" highly offensive, and I would think any person who calls him/herself a Christion would as well, but you're absolutely right that Obama is continuing the trend that was accelerated so much under Bush. There are twice as many contractors as soldiers in both Iraq and Afghanistan, and probably in Pakistan too, although they're still trying to keep our war there secret.

First of all you idiot, these jobs are not ones that are for troops vacationing!!! the normal soldier Marine should not ever be a bodyguard period. That is not their job nor should it be and your comment they "could fill as a rest in between deployments" I now know you have no clue what the job is about or how it is done!! Second, Twice as many contractors as soldiers!! again, are you stupid? most of them are mechanics, cooks, eletricians and supply types who support our military folks, the true number of individuals who do the job that BW, Triple Canopy and Dyncorps do are not anywhere near nor has it ever been close to the number of troops. Get your facts right before throwing numbers out there! All you are doing is repeating what you hear from the liberal media. Use your own brain and do some research moron!! Based off of your remarks I would bet my fat rediculious paycheck (as you would say and yes I am one of those guy's) that you have never set foot in any of the sand box's. O, I have been on both sides of the ball and can tell you it is way more professional on the contractor side in my opinion. You are also forgetting how much it costs to support one soldier in theatre. There are studies that show it is really cheaper to contract the specialty work out and let the military concentrate on what it was meant to do, fight battles!!! Get a life!

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by enwr77 June 20, 2010 5:16 PM EDT: This is outsourcing war to corporations/companies. In past wars contractors did not do these jobs. KP was something soldiers did. This part of the war complex, war for profit. Why do soldiers need body guards? What an oxymoron. How can we expect to win wars where our soldier need body guards? Soldiers are the last line of defense, protection. This is like hiring someone to pump water into the ocean. The more corporations look to tax dollars for income, the more indebt the country will be.


by ashrafsiddiq-2009 June 20, 2010 9:18 AM EDT: Pakistani Ministers have been denying any presence of Black Water in the region.

I salute to US in a way whatever source they can use, are never shame and very bold in using the means. Where as, our spokesmen and other members of Kitchen Cabinet who are more loyal to US and party head will keep denying from their own nationals.; Reply to this comment

by ibsteve2u June 20, 2010 4:02 AM EDT

I begin to suspect that it will be a Blackwater employee who puts the round behind the ear of democracy.

Or ears, as the case may be.

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by Youaregreenwithenvy June 21, 2010 3:18 PM EDT: Do you still suffer from hallucinations ?

by Acharn June 19, 2010 9:25 PM EDT

So the spokeswoman was unable to name the two competitors whose bids lost out. Can they tell us which agencies did the technical evaluation of the bidders? Because that would be interesting to know. Who exactly is so morally impaired? I don't suppose we can get the names of the individuals who signed of on the decision. That would be too much to hope for from an administration that has turned out to be even more secretive than Bush/Cheney/Addington. And God forbid any lowly employee should have the temerity to leak this information to the press. The Holder "Justice" Department will go after him/her with nets, axes, and long knives.

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by Youaregreenwithenvy June 21, 2010 3:20 PM EDT: No other company can even compare to experience & Quality than XE ~~ how do you think a US diplomat has not been lost while under guard of XE (Blackwater) ?

by annd2302 June 19, 2010 6:10 PM EDT

How many million times must it be said? "Bring back the draft".

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by rightbehind June 19, 2010 6:58 PM EDT: I agree 100%. It's the right thing to do.


by grunt4451 July 7, 2010 5:08 PM EDT: have you served in the Military? by your last comment i can def tell you never have and never will. I have. US Marine with 2 combat tours of Iraq AND Afghanistan. We better never ever have a draft. Every one who I fought with, all my friends that passed away were all VOLUNTEERS, meaning they grew a pair and signed the dotted line. The US Military will do just fine without a draft. WE DONT WANT OR NEED PEOPLE WHO DONT WANT TO BE THERE. This includes YOU.

by reviewingthesituation June 19, 2010 3:21 PM EDT

Those few "bad apples" hurt real soldiers and our national security. If they want to "serve their country," let 'em reenlist.

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by rightbehind June 19, 2010 6:46 PM EDT: I agree


by Youaregreenwithenvy June 21, 2010 3:24 PM EDT: They do a totally different job Moron. When you know what yor writing about feel free to comment.

by rightbehind June 19, 2010 2:10 PM EDT

It's a slap in the face to our troops. Our troops wear the colors we give them. The clowns from blackwater dress anyway they want and can have any gear they want. They are paid well in excess of 100 thousand a year. I would rather my tax dollars buy better equipment and pay for our troops than to line the pockets of the loyal to the highest bidder mercenaries. Shut blackwater down.

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by medicdude01 June 19, 2010 2:22 PM EDT: Once again you have no freaking idea what you are talking about, That statement is so false I can't do anything but smile. Those pictures you see are from the old days. You are sadly misinformed my friend, these guys are now regulated as to what they can wear and what gear they can have. You still seem to forget that those same men and women that served their country proudly are those same men and women that are working for that company. Go and read my comment about pay and you'll see it all comes out in the wash. I don't hear you complaining and those congress men and woman that keep giving themselves raises for doing what, yeah I thought so. Now if i'm not mistaken you're saying that a person that risks their lives to protect someone shouldn't be paid for those services. And since your are worried about your tax payer dollars how about you call your beloved congress man and tell them to find a better way to get that equipment you are paying for to our troops, because the way it's getting to them thru Pakistan ain't working, and while you're on the phone with that clown tell him to have the pay raised for our troops beyond the little 1.2 or 1.5 percent pay raise that they will be getting in 2011. Like I said before you have no idea what you are talking about. As for your calling them clowns look in the mirror.


by rightbehind June 19, 2010 2:36 PM EDT: I personally know three guys that served as private security guards in Iraq. Might as well call them Larry, Moe. and Curly. Only one of the three served in the military. I got it right. The only qualification required appears to be the John Wayne mentality. They were all very well paid. I would rather our troops get the money than a bunch of clowns.