Chinese miners descend on Bubi district in search of diamonds

Speaking
to
CITE
on
condition
of
anonymity,
villagers
expressed
surprise
at
this
development,
noting
that
no
consultations
had
been
conducted
by
community
leaders
with
the
residents
regarding
the
matter.

They
voiced
concerns
about
the
potential
impact
of
mining
on
their
homes
and
the
environment,
citing
examples
from
other
areas
where
companies
have
focused
solely
on
extraction,
leaving
behind
degraded
landscapes.

Ward
6
Councillor
Alson
Ntini
sought
to
ease
these
concerns,
explaining
that
the
group
is
currently
conducting
preliminary
studies
to
determine
whether
diamonds
are
present
in
the
area.

“If
diamonds
are
found,
it
would
represent
a
significant
development
opportunity
for
the
community,”
said
Cllr
Ntini.
“Tests
have
already
been
conducted
earlier,
including
an
aerial
survey
to
assess
the
area’s
potential
for
diamonds.
Following
that,
this
group
is
now
on
the
ground
to
perform
physical
tests.
They
will
dig
between
20
and
50
meters
deep
to
collect
samples
for
further
analysis
in
laboratories.”

He
added,
“Once
everything
is
verified,
they
will
commence
mining
operations.
This
is
a
welcome
development
for
our
area
because
if
diamonds
are
indeed
found,
the
community
stands
to
benefit.

“Our
children
could
find
employment
at
the
mine,
as
all
manual
labor
positions
that
do
not
require
specific
expertise
will
be
sourced
from
within
our
community.
This
will
create
much-needed
job
opportunities
for
our
youth.
Additionally,
the
company
has
committed
to
giving
back
by
providing
various
resources
for
local
development.
However,
this
will
only
be
confirmed
once
all
processes
are
complete
and
mining
operations
actually
begin.”

Teens, aged 19 and 15, held over grandparents’ murder

MASVINGO

Two
Masvingo
teenagers
aged
19
and
15,
allegedly
teamed
up
with
their
father
and
older
sister
to
kill
their
elderly
grandparents
whom
the
family
accused
of
practising
witchcraft.

Police
confirmed
the
shock
incident
in
a
statement
on
Saturday.

The
crime,
according
to
police
spokesperson
Commissioner
Paul
Nyathi,
happened
on
Friday
at
around
7AM
at
Chorupanga
Village,
Nyajena,
Masvingo.

Nyathi
said
“police
has
arrested
Rameck
Chidinhika,
53,
and
his
three
daughters,
Constancia
Chidinhika,
28,
Vimbai
Chidinhika,19
and
a
juvenile,
15
for
killing
his
father,
Tizirai
Chidinhika,
77
and
mother,
Miriam
Polisiri,
92,
on
allegations
of
witchcraft
and
casting
misfortune
on
the
first
suspect’s
family”.


Meanwhile,
the
Zimbabwe
Republic
Police
is
appealing
for
information
which
may
assist
in
the
investigation
of
a
case
of
murder
in
which
Jabson
Bunukwa
Kwangwari,
35,
was
found
dead
at
Village
1
Runhare,
Chiredzi
on
Friday.

Police
said
the
body
of
the
victim
was
found
in
an
advanced
state
of
decomposition
with
deep
cuts
on
the
head
and
arm.
A
blood-stained
axe
was
recovered
at
the
scene.

Police
called
on
those
with
information
to
contact
National
Complaints
Desk
on
(0242)
70
3631
or
WhatsApp
on
0712
800
197
or
report
at
any
nearest
Police
Station.

Nyathi
added,
“The
Zimbabwe
Republic
Police
implores
the
public
to
value
the
sanctity
of
human
life
and
resolve
differences
amicably
without
resorting
to
violence.

“We
urge
families
to
seek
counseling
from
local
Police
Stations,
traditional
leaders
and
church
elders
to
find
peaceful
ways
of
resolving
differences.”

‘It’s probably Zimbabweans based in SA’: Police in Zimbabwe rope in Interpol after after US$4 million bank robbery


13.10.2024


3:11

The
Zimbabwe
Republic
Police
has
launched
a
manhunt
after
a
bank
in
the
City
of
Bulawayo
was
robbed
of
US$4
million.
Picture:
Screengrab/X
Police
in
Zimbabwe
have
roped
in
Interpol
to
assist
in
tracing
a
group
of
six
armed
robbers
involved
in
a
daring
bank
heist
in
the
City
of
Bulawayo
last
week.
IOL
reported


The
Zimbabwe
Republic
Police
has
launched
a
manhunt
after
a
bank
in
the
City
of
Bulawayo
was
robbed
of
US$4
million.
Picture:
Screengrab/X

Police
in
Zimbabwe
have
roped
in
Interpol
to
assist
in
tracing
a
group
of
six
armed
robbers
involved
in
a
daring
bank
heist
in
the
City
of
Bulawayo
last
week.


IOL
reported
last
week
that
the
Zimbabwe
Republic
Police
(ZRP)
confirmed

that
investigations
are
in
full
swing
following
the
armed
robbery
incident
where
an
amount
of
US$4
million
(around
R70
million)
was
stolen.

In
a
statement
seen
by
IOL,
spokesperson
for
the
ZRP,
Commissioner
Paul
Nyathi
said
the
incident
happened
in
the
afternoon
on
Thursday
last
week.

In
the
latest
developments,
State
media
in
Zimbabwe
reported
that
the
robbers
are
believed
to
be
Zimbabweans
now
residing
in
South
Africa.

National
spokesperson
for
the
Zimbabwe
Republic
Police,
Assistant
Commissioner
Paul
Nyathi.
Picture:
The
Herald

The
suspects
in
the
bank
heist
are
identified
as
Elijah
Vumbunu
alias
Mupositori,
David
Sawadye,
Israel
Zulu,
Kudakwashe
Mudzingwa
alias
Umbro,
Takafa
Vumbunu
alias
Naison
Mahembe,
Paul
Chinake
and
Brian
Murape.

State-owned
The
Herald
reported
that
crack
teams
have
been
deployed
to
Bulawayo
and
surrounding
towns
as
investigations
intensify
into
what
has
been
described
as
the
largest
bank
heist
in
Zimbabwe’s
history.

The
Zimbabwe
Republic
Police
has
launched
a
manhunt
after
a
bank
in
the
City
of
Bulawayo
was
robbed
of
US$4
million.
Picture:
Screengrab/X

The
armed
gang
is
suspected
to
be
linked
to
a
series
of
high-profile
robberies
across
Zimbabwe,
including
a
dramatic
cash-in-transit
heist
involving
nearly
12
kg
of
gold
worth
US$675,000.

The
gold
was
reportedly
being
transported
from
a
mine
to
Reserve
Bank
of
Zimbabwe’s
Fidelity
Printers
and
Refiners
in
October
2022.

Police
in
Zimbabwe
have
previously
said
the
circumstances
around
the
Bulawayo
robbery
were
suspicious.

“Initial
indications
are
that
US$4,000,000
cash
has
been
stolen.
The
manner
in
which
this
incident
occurred
shows
an
element
of
an
inside
job
or
leakage
of
information,”
said
Nyathi.

Post
published
in:

Featured

Zimbabwe police hunting for storied R70 million heist crew in South Africa


  • Seven
    men
    were
    named
    in
    connection
    with
    a
    R70
    million
    bank
    robbery
    in
    Bulawayo.

  • The
    ringleader
    was
    previously
    granted
    amnesty,
    another
    was
    previously
    declared
    dead
    by
    police.

  • Police
    say
    they
    currently
    reside
    in
    South
    Africa.

Police
in
Zimbabwe
are
hunting
for
seven
alleged
bank
robbers,
who
are
believed
to
be
in
South
Africa.

They
got
away
with
US$4
million
(some
R70
million),
a
record
for
the
country,
in
just
a
couple
of
minutes.

On
Thursday
last
week,
the
robbers
pounced
on
an
Ecobank
branch
in
Bulawayo.
In
under
two
minutes,
the
AK47-wielding
robbers
made
off
with
the
cash
boxes
being
unloaded
from
a
cash-in-transit
van
parked
at
the
bank’s
entrance.

Afternoon
shoppers
took
videos
and
pictures
of
the
robbery
as
it
happened.

A
week
later,
police
named
the
main
people
responsible,
who
they
believe
reside
in
South
Africa,
with
one
said
to
be
operating
a
trucking
business.

Zimbabwe
Republic
Police
(ZRP)
spokesperson,
Paul
Nyathi,
said
they
had
contacted
Interpol
for
help.

“When
a
crime
of
this
magnitude
is
committed
in
our
country
and
our
investigations
suggest
the
involvement
of
foreign
nationals
or
the
participation
of
our
citizens,
who
we
believe
skipped
our
borders,
then
we
must
involve
Interpol.

“We
are
working
together
as
a
team
and,
through
our
Criminal
Investigation
Department
headquarters,
we
have
been
able
to
engage
the
other
side
of
the
border
[South
Africa]
and
we
are
still
pursuing
the
matter,”
he
said.


The
suspects

Those
named
are
Elijah
Vumbunu,
his
brother,
Takafa
Vumbunu,
David
Sawadye,
Israel
Zulu,
Kudakwashe
Mudzingwa,
Paul
Chinake,
and
Brian
Murape.

Elijah
is
said
to
be
the
ring
leader.
He
has
a
storied
life
of
crime.

In
2018,
he
was
a
beneficiary
of
a
presidential
amnesty,
having served
14
years
of
a
40-year
sentence
 for
armed
robbery.

Upon
his
release,
he
spoke
about
what
he
had
lost
while
in
jail.

“It
had
been
communicated
to
me
that
my
wife
had
moved
on
and
it
hurt,
but
I
just
accepted
that
I
had
been
away
for
14
years

she
could
not
have
waited
that
long.
After
all,
she
was
only
18
years
old
when
I
left
her,”
he
said.

Since
then,
he
has
featured
as
an
alleged
ring
leader
in
numerous
unsolved
robberies
in
Zimbabwe.

Before
Ecobank,
he
was implicated with
his
brother,
Tafaka,
and
Zulu
in
a
2022
attack
on
a
How
Mine
security
convoy,
which
was
robbed
of
11.9kg
of
gold
(worth
about
R14.5
million)
and
US$650
000
cash
(more
than
R11
million).

Last
year,
police
said
Zulu
had
been
“neutralised”
in
an
exchange
of
gunfire
with
officers
who
were
hunting
him.

Now,
they
say
he’s
alive.


Too
much
money

The
police
announced
that
US$4
million
had
been
taken
by
the
robbers,
an
amount
numerous
bankers
argue
was
strange
to
be
kept
at
a
bank
branch,
instead
of
a
cash
depot.

Safeguard,
the
contracted
security
company,
said
it
had
no
idea
that
it
was
going
to
transport
such
a
figure.

Andrew
Mallon,
the
chief
executive
officer
of
Safeguard,
in
a
letter
addressed
to
clients,
said
they
should
stick
to
agreed-upon
limits
for
the
movement
of
cash
to
avoid
what
occurred
at
Ecobank.

“A
four
million
dollar
move
obviously
poses
a
significant
risk
and
is
well
outside
any
contracted
limit
for
Safeguard
and
almost
certainly
the
security
industry
Africa-wide,”
he
said.


More
robberies

In
Zimbabwe,
the
police
adopted
a
shoot-to-kill
policy
for
armed
robbers.

In
August,
police
shot
and
killed
two
people
from
two
gangs
in
two
separate
raids.

Others
were
wounded
and
taken
into
custody.

Just
under
a
week
after
the
Ecobank
heist,
an
artisanal
gold
miner
in
Esigodini,
45
kilometres
south
of
Bulawayo,
was
raided
at
home
and
lost
US$45
000
(some
R800
000).

On
the
same
day
in
Harare,
the
police
said
an
armed
group
of
eight
raided
a
security
company
and
made
off
with
US$23
175
in
cash,
five
firearms,
seven
pepper
sprays,
and
seven
sets
of
handcuffs.

Police
and
soldiers
in
numerous
instances
have
been
implicated
in
robberies.

In
some
cases,
they
have
been
arrested.
Most
recently
in
September,
two
policemen
and
a
soldier,
part
of
seven-men gang,
appeared
in
court
to
face
11
counts.

The
latest
available
data
from
the
Zimbabwe
National
Statistics
agency
revealed
that,
between
2020
and
2021,
there
was
an
average
of
25
armed
robberies
per
day
in
the
country.

Plans to hold first Chinese investment expo in Zimbabwe on course: official


Zimbabwe
Agricultural
Society
(ZAS)
Chief
Executive
Officer
Andrew
Matibiri
told
Xinhua
in
a
phone
interview
that
preparations
for
the
expo
are
well
on
track,
with
the
event
likely
to
be
held
in
the
first
half
of
2025.

“Preparations
for
the
expo
are
still
on
course.
At
the
moment,
we
are
just
finishing
our
budgets
because
our
financial
year
ends
at
the
end
of
September,
so
we
are
just
finalizing
our
budgets
in
preparation
for
that
and
other
things
that
we
want
to
do,”
Matibiri
said.

According
to
him,
the
biggest
investors
in
Zimbabwe’s
economy
are
those
from
China.

“So
the
Chinese
investors
can
benefit,
and
we
can
also
benefit
from
further
interaction
with
potential
investors
from
China,”
he
said,
adding
that
the
expo
will
specifically
attract
existing
and
potential
Chinese
investors
to
Zimbabwe’s
agricultural
sector.

In
July,
Maxwell
Mutema,
chairman
of
the
Agriculture
Development
Committee
in
the
ZAS,
told
Xinhua
that
the
expo
would
be
held
in
recognition
of
the
important
role
that
Chinese
investors
are
playing
in
the
development
of
Zimbabwe’s
economy.

Mutema
said
the
Zimbabwean
government
would
coordinate
with
the
Chinese
embassy
and
the
ZAS
to
convene
the
event,
which
would
be
held
at
the
ZAS
grounds
in
downtown
Harare,
the
capital
of
Zimbabwe.

The
committee
chairman
also
expressed
hope
that
the
investment
expo
would
grow
into
a
bigger
annual
event
dedicated
to
showcasing
Chinese
investment
in
Zimbabwe’s
economy.

Post
published
in:

Business

Where Do I Recognize That Black Couch From?! – See Also – Above the Law




<br /> Where<br /> Do<br /> I<br /> Recognize<br /> That<br /> Black<br /> Couch<br /> From?!<br /> –<br /> See<br /> Also<br /> –<br /> Above<br /> the<br /> Law


























Conquering Conferences: Making Every Conversation Count – Above the Law



Ed.
note:

This
is
the
fourth
article
in
a
series
providing
a
comprehensive
guide
to
networking
at
conferences.
Read
the

first
here,
 second
here,

and

third
here.


In
this
installment
of
“Conquering
Conferences,”
we
step
into
the
heart
of
the
event

the
social
rhythm
of
conversations.


Like
dancers
on
a
floor,
each
interaction
at
a
conference
is
an
opportunity
to
engage
in
a
meaningful
and
enjoyable
dialogue.


Let’s
discover
how
to
make
every
conversation
count.


The
Social
Rhythm
of
Conference
Conversations


It’s
time
to
shake
things
up
in
the
legal
mixer,
to
swirl
through
the
crowd
with
finesse
and
engage
in
conversations
that
are
both
professional
and
personable. 


Here
are
some
conversation
starters
that
can
help
you
glide
through
these
social
interactions
with
the
grace
of
a
seasoned
dancer,
blending
professional
topics
with
personal
interest
to
create
a
harmonious
and
memorable
exchange:



  1. “Been
    to
    this
    conference
    before,
    or
    are
    you
    a
    freshman?”


    A
    cheeky
    way
    to
    ask
    about
    their
    conference
    history.


  2. “Got
    any
    courtroom
    war
    stories?”


    Nudging
    them
    to
    share
    interesting
    cases.


  3. “Read
    anything
    lately
    that
    doesn’t
    have
    ‘v.’
    in
    the
    title?”


    A
    light-hearted
    book
    question.


  4. “How
    do
    you
    keep
    the
    scales
    of
    work-life
    balance
    from
    tipping
    over?”


    Adds
    a
    relatable,
    personal
    element.


  5. “What’s
    your
    secret
    lawyer
    superpower?
    Mine’s
    caffeine
    tolerance.”


    A
    quirky,
    personal-professional
    question.


  6. “Where
    did
    you
    grow
    up?”


    A
    personal
    question
    that
    often
    uncovers
    common
    backgrounds.


  7. “Any
    favorite
    memory
    from
    law
    school?”


    Brings
    a
    nostalgic,
    lighter
    touch.


  8. “What
    inspired
    you
    to
    choose
    law
    as
    a
    career?”


    Gets
    into
    their
    personal
    motivations.


  9. “Do
    you
    have
    a
    hobby
    that
    takes
    your
    mind
    off
    work?”


    Shifts
    the
    focus
    to
    personal
    interests.


  10. “If
    you
    weren’t
    in
    law,
    what
    would
    you
    be
    doing?”


    Encourages
    them
    to
    share
    dreams
    and
    alternate
    passions.


  11. “What’s
    your
    go-to
    activity
    for
    stress
    relief?”


    A
    personal
    insight
    into
    how
    they
    manage
    the
    pressures
    of
    the
    profession.


  12. “What’s
    the
    most
    unexpected
    lesson
    your
    legal
    career
    has
    taught
    you?”


    Invites
    sharing
    of
    unique
    insights
    and
    experiences.


  13. “What’s
    your
    secret
    to
    staying
    motivated
    in
    this
    challenging
    field?”


    Delves
    into
    personal
    strategies
    for
    professional
    perseverance.


  14. “What
    legal
    trend
    or
    topic
    are
    you
    currently
    keeping
    an
    eye
    on?”


    Keeps
    the
    conversation
    relevant
    and
    industry-focused.


  15. “How
    do
    you
    think
    our
    profession
    will
    change
    in
    the
    next
    10
    years?”


    Encourages
    forward-thinking
    and
    speculative
    conversation.


Now
that
we’ve
danced
through
the
conversations,
it’s
time
to
learn
the
art
of
the
graceful
exit.


In
our
next
article,
we’ll
teach
you
to
exit
conversations
smoothly,
leaving
a
lasting
impression
without
any
awkwardness.


The
Social
Rhythm
of
Conference
Conversations


✔️
Engage
in
meaningful
dialogues,
blending
professional
topics
with
personal
interests.
✔️


Use
open-ended
questions
to
encourage
rich,
interactive
discussions.




Sejal PatelSejal Patel is
the Founder
of
Sage
Ivy
,
a
New
York-based
consultancy
specializing
in
empowering
attorneys
with
innovative
practice
development
strategies.
With
over
20
years
of
experience,
Sejal
applies
her
expertise
in
assisting
clients
convert
their
relationships
into
revenue
by
applying
individualized
strategies
to
their
networks
and
leveraging
their
unique
styles
authentically.  

Stat(s) Of The Week: Gen AI Versus Outside Counsel – Above the Law

As
corporate
law
departments
increasingly
adopt
generative
AI,
a
majority of
them
expect
the
technology
to
reduce
their
reliance
on
outside
service
providers
for
routine
tasks,
according
to
a
new
study. 


A
survey
of
475
law
department
professionals
by
the
Association
of
Corporate
Counsel
and
Everlaw
reveals
that
58%
of
legal
departments
believe
that
generative
AI
will
reduce
their
dependence
on
outside
providers.

In
a
statement
announcing
the
results,
the
organizations
noted
that
this
proportion
more
than
doubles
the
25%
of
respondents
to
a
2023
survey
who
said
they
planned
to
reduce
the
number
of
law
firms
they
would
engage
with
during
the
coming
year,
with
cost-effectiveness
cited
as
the
primary
reason.


“The
expectation
for
in-house
teams
to
cut
costs
with
AI
is
becoming
a
reality,
with
over
a
quarter
now
reporting
savings,”
Gloria
Lee,
Everlaw’s
CLO,
said
in
the
statement.
“In
just
three
years,
AI
technology’s
accelerating
impact
on
corporate
counsel
has
begun
to
reshape
in-house
legal
functions,
spurring
a
sea
change
across
the
legal
industry.” 



58%
of
Legal
Departments
Expect
GenAI
to
Reduce
Reliance
on
Outside
Counsel
and
25%
Already
Report
Cost
Savings,
New
ACC
and
Everlaw
Survey
Reveals

[Business
Wire]




Jeremy
Barker
is
the
director
of
content
marketing
for
Breaking
Media.
Feel
free
to email
him
 with
questions
or
comments
and
to connect
on
LinkedIn

The ‘Cost Plus’ boondoggle that hobbles US defense – Breaking Defense

Capitol
Hill
seen
on
a
cloudy
day.
(Photo
by
Anna
Moneymaker/Getty
Images)

As
traditional
defense
contractors
and
outsiders
alike
gather
for
the
Association
of
the
US
Army
mega-conference
this
month,
the
latest
Army
acquisition
policy
just
reinforces
old
dysfunctions
that
keep
the
most
innovative
firms
away.

Above
all,
the
Army’s

March

directive
on
“Enabling
Modern
Software
Development
&
Acquisition
Practices”
[PDF]
encourages
the
service
to
buy
custom-built
software,
developed
under
arcane
cost-plus
accounting
rules,
“to
the
maximum
extent
possible,”
instead
of
following
best
private-sector
practices.

Even
the
official
Senate
Armed
Services
Committee
report
[PDF]
warns
that
the
Army
directive
“appears
to
deviate
from
the
current
law”
and
requires
the
service
report
back
by
Jan.
15
on
how
it
“will
implement
the
Directive
in
a
manner
that
supports
the
participation
of
small
businesses
and
nontraditional
defense
contractors.”

The
Army’s

fumbling

is
just
the
latest
and
most
blatant
manifestation
of
the
antiquated
business
model
in
place
across
the
Department
of
Defense.
It’s
an
approach
that
consistently
fails
to
seek
out,
absorb,
and
deploy
innovative
new
technologies
as
fast
as
the
commercial
world
or
our
adversaries.

There
are
pockets
of
excellence

like

DIU
,

AFWERX
,

SOFWERX
,
and

SDA


that
have
entrepreneurial
culture
baked
into
their
DNA.
They
are
funded
by
a
disorganized
hodgepodge
of
well-meaning,
if
uncoordinated
pots
of
money

including

Hedge
Portfolio
,

APFIT
,

RDER
,

RCCTO
,
and

RIF


and
deliver
cutting-edge
products,
including
software,
to
the
warfighter
at
the
speed
of
relevance
using
commercial
purchasing
methods.
But
the
Army
directive appears
to
be
doubling
down
on
the
legacy
system
that
everyone
else
is
trying
to
move
away
from
as
quickly
as
possible.

That
current
system,
resembling
the
Soviet
centralized
economy
model,
notoriously
ignores
currently
available
technology
and
products
made
by
commercial
companies,
and
instead
fantasizes
impossible-to-make
exquisite
weapons
through
the
“requirements”
process,
runs
a
fiction-writing
contest
to
select
from
one
of
the
five
remaining
large
prime
contractors
that
can
write
such
proposals,
then
awards
the
winner
a
monopoly
for
decades
for
an
item
they
have
never
made.
Because
the
DoD
locks
themselves
into
purchasing
that
product
only
from
that
contractor,
no
private
company
would
invest
out
of
their
own
pocket
in
a
superior
product,
as
there
is
no
way
for
the
DoD
to
switch.
The
prime
contractor
is
free
to
burn
billions
of
taxpayer
dollars
for
years,
unmolested
by
competitive
pressures
from
other
vendors
or
adversaries
whizzing
by
us.

The
worst
part,
however,
is
the
way
these
prime
contractors
get
paid,
specifically
the
so-called
“Cost
Plus”
model

which
particularly
drew
ire
in
the
SASC
report.
Media
reports
often
liken
the
Cost-Plus
model
to
an
hourly
time
and
materials
arrangement. 
It
is
not.
It
is
much,
much
worse.

Imagine
you
need
to
replace
the
heating
system
in
your
house.
You
prefer
the
plumber
bid
for
the
job
using
a
firm
fixed
price
with
everything
included
so
there
are
no
nasty
surprises
at
the
end.
Many
plumbers
work
this
way:
pad
the
estimate
a
little
for
safety,
then
perform
the
work
while
aggressively
keeping
expenses
in
check
to
maximize
the
profit
left
over
at
the
end.
Thousands
of
years
of
economic
evolution
have
made
this
the
most
popular
business
model
as
it
rewards
efficient
work
by
the
vendor
with
higher
profits
and
rewards
the
customer
with
certainty
of
cost.

If
the
job
is
too
complex
for
firm
fixed
price

say,
there
are
unknowns
inside
the
walls
— 
the
plumber
might
say,
“It
will
be
$85
per
hour
for
my
labor,
plus
the
cost
of
materials”. 
This
is
still
a
normal
commercial
practice. 
The
plumber
will
be
rewarded
for
driving
the
underlying
cost
of
that
hour
as
far
below
$85
as
possible
to
maximize
the
profit
on
each
hour.

This
is
where
the
DoD
goes
off
the
rails.
Imagine
then
telling
your
plumber:
“OK,
inside
that
$85
per
hour,
I
need
to
see
exactly
how
much
you
are
paying
yourself
and
your
workers
in
salary,
benefits,
and
all
your
internal
business
costs,
so
I
can
make
sure
you’re
not
making
too
much
profit”.
After
some
very
colorful
language,
the
plumber
will
tell
you
it’s
none
of
your
business.

But
a
defense
contractor
can’t
tell
the
US
military
to
go
to
hell.
There’s
no
commercial
market
for
tanks
and
submarines.
So
the
hardcore
defense
industry
has
had
no
choice
but
to
implement
laborious,
bespoke
accounting
systems

and,
in
fact,
has
used
them
not
only
as
a
barrier
to
entry,
keeping
competitors
from
entering
the
defense
business,
but
as
a
tool
to
extract
more
profit
from
the
Pentagon.

In
the
Cost-Plus
world
companies
are
rewarded
for

increasing

their
business
expenses.
Instead
of
$85,
you
get
$125,
then
add
all
the
unnecessary
auditing
and
accounting
expenses
just
to
keep
track
of
all
this
nonsense
and
you’re
up
to
$150.
Then,
because
you
have
a
locked-in
monopoly,
the
hours
spent
performing
each
task
magically
inflate
once
the
work
starts.
The
customer
can’t
cut
the
contractor
off
and
switch
to
someone
else.
The
excellent
article

The
Law
the
Department
of
Defense
Loves
to
Break

accurately
describes
the
misguided
philosophy
that
drove
DoD
to
create
this
dystopian
model
in
the
first
place.
(The
article
was
written
by
an
employee
of
non-traditional
tech
contractor

Palantir
,
but
is
not
an
official
company
statement).
But
needless
to
say,
it
is
perhaps
the
worst
way
to
buy
anything
that
one
could
possibly
imagine.

The
net
result
of
the
Cost
Plus
incentive
structure
is
to
skew
the
“make
or
buy?”
decision
towards
“make”
wherever
possible.
Buying
a
finished
off-the-shelf
item
that
could
shave
years
off
of
deployment
to
the
warfighter,
and
save
billions
in
the
process
is
anathema
to
a
Cost
Plus
contractor.
It
would
cost
them
a
boatload
of
profit
they
could
make
reinventing
wheels.

Lawmakers
are
no
dummies.
In
1994
they
passed
the
Federal
Acquisition
Streamlining
Act,
which
amongst
other
things,
mandates
that
before
a
Cost-Plus
custom
development
contract
can
be
solicited,
the
DoD
must
first
search
the
commercial
market
for
something
that
already
exists,
and
is
“close
enough”
to
what
is
needed,
and
if
it
exists,
buy
it
with
whatever
commercial
business
model
that
vendor
uses
(which
is
invariably
some
kind
of
fixed
price
arrangement).
This
is
codified
in

10
U.S.C
3453
.

As
the
Senate
report
language
spells
out,
it’s
very
hard
to
see
how
the
Army’s
March
directive
does
not
“deviate”
from
that
law

and
even
if
the
service
can
somehow
satisfy
the
letter
of
FASA,
it
very
much
violates
the
spirit.
And
while
FASA
is
far
from
consistently
enforced,
it’s
not
a
dead
letter,
as
shown
by
the
Army’s
loss
to
Palantir
in
a

2017
lawsuit

over
this
very
matter.
In
the
future,
a
new
suit
over
the
new
policy
could
cost
the
Army
hundreds
of
millions
and
years
of
delay.

Yet
the
Army
seems
to
be
heading,
undaunted,
towards
the
cliff,
as
shown
by

this
declaration

by
the
service’s
acquisition
chief,
Doug
Bush:
“If
some
companies
don’t
want
to
bid
on
a
contract,
it’s
a
free
country.
Don’t
bid.
Others
will.
My
goal
is
simply
to
get
the
capability
for
the
Army,
not
to
make
everybody
happy.”

But
the
very
best
software
companies
in
the
world
all
work
on
firm
fixed
price:
By
pre-ordaining
Cost
Plus,
the
Army
effectively
excludes
the
very
best
in
the
business
right
from
the
get-go.
What
possible
reason
could
one
have
to
do
this?
The
only
beneficiaries
of
this
policy
are
the
incumbent
defense
contractors,
who
are
rejoicing
at
the
affirmation
of
business-as-usual,
and
our
adversaries
around
the
world,
who
will
take
aid
and
comfort
in
this
opportunity
to
surpass
the
United
States’
competitive
advantage.

It’s
incumbent
on
Congress
to
step
in,
conduct
rigorous
oversight,
and
if
necessary
pass
new
legislation
to
hold
the
Army
to
both
the
letter
and
the
spirit
of
the
Federal
Acquisition
Streamlining
Act.
It’s
clear
the
Pentagon
won’t
do
it
themselves.


Warren
Katz
is
Chairman
of

The
Alliance
for
Commercial
Technology
in
Government
,
the
industry
association
representing
commercial
technology
companies
that
would
like
to
do
business
with
the
DoD
on
commercial
terms.
He
was
past
Managing
Director
of
The
Air
Force
Accelerator
Powered
by
Techstars,
prominent
angel
investor
and
startup
founder
in
dual-use
companies.