Manufacturer in $2 Million Accord With U.S. on Deficient Kevlar (gets new $72mil contract)

NY Times ^ | Feb 7, 2008 | Bruce Lambert

[Dutchgirl]

A North Dakota manufacturer has agreed to pay $2 million to settle a suit saying it had repeatedly shortchanged the armor in up to 2.2 million helmets for the military, including those for the first troops sent to Iraq and Afghanistan.

Jeff Kenner and Tamra Elshaug, former managers, filed a whistle-blower suit accusing Sioux Manufacturing of fraud and safety violations.

Twelve days before the settlement with the Justice Department was announced, the company, Sioux Manufacturing of Fort Totten, was given a new contract of up to $74 million to make more armor for helmets to replace the old ones, which were made from the late 1980s to last year.

[Dutchgirl]

I found this by way of Say anything blog.

So you sell defective helmets to the US government, pay a 2 million dollar fine and then get awarded a new contract - to repalce the defective hemets-for over $70 million?

http://sayanythingblog.com/entry/sioux_manufacturing_smc_pays_2_million_to_settle_lawsuit_for_faulty_helmets/

[gov_bean_ counter]

No problem. Just recycle the old ones and give them to KBR and SBH.

Just kidding...

Get those helmets out of there and lock up the perps.

[Right Wing Assault]

What bastards!

I hope the people that made the safety belts and child seats that keep their kids safe in cars were made by people with a conscience, unlike them.

Lock ‘em up. Charge them with manslaughter or whatever applies.

[CDHart]

Following is their e-mail address. Tell them what you think! I did. I also plan to write to my senators and representative asking them to pull the second contract and award it to a company with integrity, one that takes pride in its work.

dsteffen@siouxmanufacturing.com

Carolyn

[CDHart]

This is outrageous. BTTT

[gracesdad]

It’s obvious I missed my calling. Rip off the DOD and then make even more money fixing the rip off. The defense budget is now the highest it’s been since WWII (adjusted for inflation) and a huge percentage is going to fraud or stuff that we don’t need but that congresscreatures want for their districts.

[Dutchgirl]

I’m wondering about the timing of the initial contract.

I remember some story about Army berets made in China, right around 2000. And I am wondering what the Sioux tribe has to do with the company.

[CDHart]

Good question. Now we have to worry about the Sioux as well as the Chinese?

Carolyn

[mo]

Boy...does this ever define the problem with “business as usual” inside the beltway....some in congress need to hit the gallows with the owners here...

[KayEyeDoubleDee]

This was a quota-driven contract, pure and simple:

History of Sioux Manufacturing
http://siouxmanufacturing.com/history.htm

Founded in 1973, Devils Lake Sioux Manufacturing Corporation (DLSMC) opened its doors for the first day of production in February 1974. Started as a joint venture between the Spirit Lake Nation (formerly the Devils Lake Sioux Tribe) and the Brunswick Corporation, DLSMC was created to provide employment opportunities for the members of the tribe...

I could pontificate about this from now until the cows come home, but good grief, it's so depressing, and so darned predictable, that I just want to go stick my head in the sand and pretend it isn't happening.

[The Great RJ]

Sounds like the same corner cutting used by some Chinese manufacturers. If the company made helmets that did not meet the Government specifications, then they should not be paid and certainly not awarded any further contracts. Is this not a company owned by an Indian tribe? Perhaps the forces of political correctness are at work here.

[Wolfie]

I doubt it. I’m quite certain the forces of campaign contributions (read: bribery) are at work, however.