By Bruce V. Bigelow
UNION-TRIBUNE STAFF WRITER
May 5, 2004
Anxiety about San Diego-based Titan Corp.'s sale to Lockheed Martin surfaced again yesterday among certain high-risk investors who worried that political fallout over Iraqi prisoner abuses could inject new uncertainties into the proposed deal.
An internal Pentagon report, which was available yesterday on the Internet, said at least one translator employed by Titan was involved in alleged abuses at Iraq's Abu Ghraib prison. Another translator involved was also identified in one part of the report as working for Titan but in other parts he was said to be working for CAIC International, an Arlington, Va. defense firm.
While largely a political issue, Wall Street analysts acknowledged that some high-risk investors are growing concerned that the public outcry over the abuses could somehow affect Lockheed's pending buyout of Titan.
Some arbitrage portfolio managers said privately their concerns were sparked chiefly by yesterday's sell-off in CACI International. CACI has been providing interrogation services to the U.S. Army in Iraq.
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http://www.signonsandiego.com/news/business/20040505-9999-1b5titan.htmlHow To Discipline Private Contractors
What consequences do the companies involved in Abu Ghraib face?
By Phillip Carter
Posted Tuesday, May 4, 2004, at 3:10 PM PT
The first and easiest way to discipline contractors is to fire them. Practically, this means terminating their government contract, cutting them off from thousands (or millions) of taxpayer dollars. The two contractors implicated in the Abu Ghraib scandal, CACI Corp. and Titan Corp., hold contracts with the Army for the provision of linguistic support at prison facilities in Iraq (among other things). Under Part 49 of the Federal Acquisition Regulations, the government may kill these contracts in the event of a "material breach" or other "default" on the contractor's part. Such a breach can mean simple failure to perform under the terms of the contract, as well as criminal conduct by employees or by the corporation itself. The discretion to terminate these agreements rests with the Army, though the contractors could appeal this decision to the courts.
Government contractors can also be criminally prosecuted (as described in this "Jurisprudence" article) if they misbehave badly enough, but the Justice Department told the Wall Street Journal on Monday that it has no current plans to prosecute any contractors involved with the abuses at Abu Ghraib. Civil suits may also be brought against the contractors and the U.S. government, as was done following the U.S. Navy's downing of an Iranian passenger jet in 1988. Families of the dead passengers attempted to sue the government contractors who built the U.S.S. Vincennes and its weapons systems under the Federal Tort Claims Act. However, this lawsuit failed, in part because of a legal doctrine known as the "government contractor" defense, which shields government contractors from liability when they build something or provide services in accordance with government specifications. This defense, and other procedural obstacles, would likely prevent the Iraqi detainees from suing contractors in American courts for damages resulting from their treatment at Abu Ghraib.
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http://slate.msn.com/id/2099954/