Gates awarded the contracts, the pentagon then had to “donate” another 6 million bucks to the company so they could build the production lines after the big contract was awarded. The company had already been fined for failing to produce as per the contract. At one point it was taking them 5 weeks to complete one single truck and they still got the contract.


Gets real messy when you look at it all, law suits, CEO’s leaving with company info getting awarded other military contracts, more law suits.







:Down48:Snip:When U.S. forces stormed into Iraq in March 2003, the people at Force Protection had more experience selling boats than military trucks.


The company traces its roots to Sonic Jet Performance, Inc., a California speed boat company founded in 1997. When the boat business hit tough times after the Sept. 11, 2001, terrorist attacks, company officials began looking for a new product, says Madhava Rao Mankal, then Sonic Jet's chief financial officer.


They had just gotten a $25,000 investment from Frank Kavanaugh, a principal with the equity investment firm Ashford Capital, and he'd committed to raise far more. In return, he got a 20% stake in the business.




:Down48:Snip;The early Force Protection contracts were "sole-source," because the Marines, the contracting agent, determined that no other U.S. company could immediately produce the vehicles they needed. But the inspector general's June report criticized that decision. Force Protection lacked the capacity to deliver on the contract, the report concluded, and the Marines should have sought other sources.

"Contracting with a company that has not demonstrated acceptable performance and responsibility may not be in the best interest of the government," the report said, and "late delivery … may hinder the war fighters' ability to execute mission requirements and increase risk to soldiers' lives."

Nevertheless, the inspector general was impressed with the vehicles, noting that they "performed well and saved lives."

The Marines insist the sole-source contracts were justified.

"I don't believe it was a mistake," Brogan, the Marine general, said at a briefing last month. At the time, the Marines needed a "commercial, off-the-shelf" vehicle that could be produced immediately, and Force Protection was the only U.S. company building one, he said



[link to www.usatoday.com]



Below is an old release, note the second paragraph from the bottom.


[link to www2.prnewswire.com]



So we have a boat company turned military armored car manufacturer that an investment firm from Delaware invested in for 20% stake of the company’s stock shares right before it gets 1.3 billion in military contracts. Same as it ever was.