IDT News

Defense contractor loses appeal

BELVIDERE - Infrastructure Defense Technologies has lost its appeal against the federal government, likely ending its quest for a piece of a $400 million defense contract.

IDT, based in Belvidere, makes earth-filled walls that are used to protect military bases overseas. It bid on a four-year contract with the Defense Logistics Agency, the combat support arm of the Department of Defense, to provide the walls for ongoing operations in Iraq and Mghanistan. The DLA awarded the bid to British firm Hesco Bastion.

IDT co-owners Tom and Ken Carlton protested the bid, saying Hesco's product was inferior and the bid violated the DLA's own specifications, which called for a superior technical product regardless of price. The DLA agreed to reexamine the bids but made the same decision this spring.

IDT protested the bid with the Government Accountability Office, which denied the bid protest in a ruling issued Tuesday.

"We fought this fight as hard as we could, both emotionally and financially, and we've lost," Tom Carlton wrote in an e-mail. "I feel confident that we could not have done anything else to win."

Had IDT won even a piece of the contract, it would have added hundreds of jobs and hundreds of millions of dollars in wealth to the area, according to a Northern Illinois University study. Instead, Carlton said the company may have to layoff employees.

The GAO's legal decision will be made public next week, said agency lawyer Ralph White, after IDT has had a chance to redact proprietary information.'

IDT could appeal the GAO ruling at the U.S. Court of Appeals, but Carlton said it's not worth it.

"Even if we were to win there, the whole matter would be referred back to the DLA for 'corrective action,' " he wrote. "We will write this whole matter off as a bad experience and continue to chase other opportunities."

Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.

By Sean F. Driscoll
ROCKFORD REGISTSER STAR
7/29/2010

Rejected defense bidder battles on

BELVIDERE - Infrastructure Defense Technologies officials continue to bang the drum loudly in their fight to reverse a decision to award a $400 million defense contract to a British company.

But their efforts will likely prove fruitless, since public sentiment has little chance of forcing a change.

Still, IDT has enlisted federal and state lawmakers, labor unions and local officials to protest the Defense Logistics Agency's award for protective barriers to Hesco Bastion, which received the four-year contract but whose product received an inferior technical rating. IDT protested the initial award and was allowed to resubmit its application, but it was denied again in April. IDT has filed a second protest with the Government Accountability Office.

Tom Carlton, co-owner of IDT and its sister company, Corrugated Metals, has appeared on national radio shows and been quoted in several media outlets along with his brother, Ken, to bring attention to their protest. They've briefed the local congressional delegation, including Democratic Sens. Dick Durbin and Roland Burris and Republican Rep. Don Manzullo, and received support from congressional officials in other states, including Sen. Scott Brown, R-Mass.

But the support may not help IDT in its quest to get a piece of the contract, Carlton concedes. It may, however, raise awareness of a larger problem with how the government awards its bids, he said.

"I don't see it affecting the GAO one way or another or creating a sense of pressure one way or another," he said. "What we do ask is people who are concerned to call their congressmen and senators and let them know this is an unacceptable practice. As far as I know, a lot of people have been doing that."

The protective barriers are metal walls that can be filled with sand or dirt and are used to protect U.S. military bases in Iraq and Afghanistan. IDT already makes the wall, which it has dubbed the "Metalith," for some bases overseas.

If IDT got the project, it could create 250 new jobs at the Belvidere plant and another 105 through the community, according to an analysis by the Northern Illinois University Center for Governmental Studies. Along with the $400 million from the contract, it could generate $53 million in indirect sales and $75 million in salaries.

The political and public support will have "absolutely zip" to do with the GAO's ruling on the appeal, said Ralph White, managing associate general counsel for procurement law at the agency.

"I can't do anything about individual members of Congress who have a constituent business on whose behalf they want to write a letter," he said. "We have a statutory obligation to provide a forum just as if it was a court. We're really not interested in outside views. ... We're interested in what the procurement laws and regulations state and did the Defense Logistics Agency follow them."

IDT has requested a hearing before the GAO on its bid projects, but Carlton said they haven't heard if the request will be granted. If there's no hearing, the GAO will make its decision based on documents filed.

A ruling is due on the protest by July 29. IDT recently filed a supplementary protest based on new information it has received from DLA; a ruling on that protest is due Sept. 9.

Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.

By Sean F. Driscoll
ROCKFORD REGISTSER STAR
6/11/2010

Job Creation Begins With Government Procurement Practices

By Kenneth E. Carlton
Special to the Register Star

President Obama has spoken eloquently about creating jobs in America, and ending the practice of sole-source procurement at the Pentagon.

The Department of Defense hasn't been listening.

Our company, Infrastructure Defense Technologies, LLC (“IDT”), manufactures protective barriers for the military. We have seen firsthand the manner in which the Defense establishment is destroying America's Industrial Base by doling out sole-source contracts to foreign companies amid the trials of war and economic depression.  Following is the story of our company, and a recommendation to the White House on how to fix the continued practice of exporting American jobs on the home front.

For the last seven years, the Defense Logistics Agency (“DLA”) has purchased over $1 billion worth of barrier products from a foreign company, on a sole-source contract. What's worse, our government has paid for these purchases in foreign currency.

Recently, the DLA conducted a competitive solicitation for barriers, for the stated purposes of enhancing protective benefits, finding alternatives to the foreign product, and breaking the sole source procurement practice. The winning bidder was to be awarded a four year contract worth $400 million.

IDT's barrier product was judged by DLA to offer the best protective benefits to the U.S. Military, and our price was determined to be “fair and reasonable”. Yet, despite these facts, the DLA rewarded the same foreign company with a new contract, thus continuing their monopoly status in the military supply chain.

IDT is based in the President's home State of Illinois. Our town of Belvidere has an unenviable unemployment rate of 22%. A successful award of this contract would have created 250 new, high-paying jobs in our plant.

So, in the midst of war and economic recession, the DLA has chosen to stick it to our soldiers, taxpayers, workers and industrial base in one fell swoop. They have also disregarded two of President Obama's key initiatives: The creation of jobs, and the end of sole-source monopolies on defense expenditures.

Nicely done, DLA.

There is no shortage of stories about contracting problems at the Department of Defense, where many of their largest suppliers are foreign entities. But how do we solve this issue of coddling foreign companies at the expense of our industrial security? The answer is called the Buy American Act. 

The Buy American Act was signed into law by President Roosevelt in 1933, and established government preference for U.S. made products in its purchases. Fast forward to 2010, where countries allied with the United States by treaty or trade agreement compete for U.S. Government procurements on an equal footing with American businesses.

The practice of allowing foreign entities to bid as equals with American companies cannot be justified. The U.S. Government purchases more goods and services than any other nation on Earth, which illustrates the counterproductive nature of unrestricted competition. Furthermore, America's trade deficit is killing our competitiveness, harming our currency and weakening the overall economy. 

Contracts to U.S. businesses will create jobs and taxpayers, and will reduce unemployment rolls. Domestic procurement stimulates expenditures on durable goods, which leads to downstream productivity. U.S. businesses pay income taxes on their profits, unlike their foreign counterparts. Prosperity leads to new research, development and expertise (formerly referred to as American know-how).

Based upon the foregoing, a 25% price consideration should be given to any American company which offers a product or service to the U.S. Government in the presence of foreign competition. This strategy could be implemented in short order due to its simplicity and popularity with the American People.

At Infrastructure Defense Technologies, our mission is to protect America's deployed troops and create jobs at home. Maybe the Pentagon should consider these values. And as for the President, these are among the commitments of his campaign and the duties of his office.

How about pitching for the home team?

Kenneth E. Carlton is co-owner of Infrastructure Defense Technologies, LLC
ROCKFORD REGISTSER STAR
6/6/2010

Belvidere firm plans 2nd appeal of 2nd snub on defense contract

BELVIDERE – A Belvidere company has again been shut out of a federal contract worth up to $400 million that the company said could add dozens of jobs to the region.

Hesco Bastion of Leeds, England beat Infrastructure- Defense Technologies on a deal for “expeditionary earth-filled protective barriers,”  metal walls that can be filled with sand or dirt and are used to protect U.S. military bases in Iraq and Afghanistan. IDT already makes the wall, which it has dubbed the “Metalith,” for some bases overseas.

The work was preliminarily awarded to Hesco in the fall, but IDT protested the bid because it received the best technical rating fro the project, owner Tom Carlton said, and the company felt it was improperly passed over.

After the agency agreed to re-examine its solicitation process, IDT and Hesco resubmitted their bids with revisions. But the Defense Logistics Agency, a combat support agency of the Defense Department, said Tuesday that Hesco was selected again. The two-year contract, worth $100 million a year, includes two one-year extensions.

Carlton who was in Philadelphia to meet Thursday with DLA officials, said IDT would file another bid protest.

By Sean F. Driscoll
ROCKFORD REGISTSER STAR
4/16/2010

Belvidere company denied military contract again

BELVIDERE - For the second time, a local company has been shut out of a federal contract worth up to $400 million that the company said could add dozens of jobs to the region.

British firm Hesco Bastion beat Belvidere-based Infrastructure Defense Technologies on a contract for "expeditionary earth-filled protective barriers," metal walls that can be filled with sand or earth and are used to protect U.S. military bases in Iraq and Afghanistan. IDT already makes the walls, which it has dubbed the "Metalith,"; for some bases overseas.

The contract was preliminarily awarded to Hesco in the fall, but IDT protested the bid because it received the best technical rating for the project, said owner Tom Carlton, and the company felt it was improperly passed over.

After the agency agreed to re-examine its solicitation process, IDT and Hesco resubmitted their bids with revisions. But the Defense Logistics Agency, a combat support agency of the Department of Defense, announced Tuesday that Hesco had won the contract again. The contract is for two years, with two one-year extension options, and is worth $100 million a year.

Carlton, who was in Philadelphia today to meet with DLA officials, said IDT would file another bid protest on the matter. He said he was upset the DLA didn’t split the work between Hesco and IDT, which he believed would be the outcome.

"The agency basically turned around and did the exactly the opposite of what they said they were going to do,"; Carlton said. "They rewarded a foreign company with an inferior product, and turned their backs on the American manufacturing base.";

IDT, a sister company of Corrugated Metals Inc., has been gathering support from area business and political leaders, including Sen. Dick Durbin, D-Ill., in its attempt to get the Hesco bid overturned.

Christina Mulka, Durbin’s press secretary, said in an e-mail that the senator would continue to help IDT’s bid get a fair consideration.

"It’s disappointing that IDT was not successful in their bid, but Sen. Durbin will pay close attention to the award as it moves forward,"; she wrote.

Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.

By Sean F. Driscoll
BusinessRockford.com
Apr 15, 2010 @ 12:54 PM

Belvidere company protests loss of $100 million contract

By Sean F. Driscoll

Originally presented at BusinessRockford.com

Sep 09, 2009 @ 05:13 PM

A local company is filing a protest with the federal government over what its owners say was unfair treatment in the competition for a $100 million contract that would have added 70 jobs to the region.

Infrastructure Defense Technologies, a sister company of Corrugated Metals Inc., was one of several companies to submit a bid to the Defense Logistics Agency for "expeditionary earth-filled protective barriers," or metal walls that can be filled with sand or earth and are used to protect military bases in Iraq and Afghanistan from attack.

The bid specs specified that technical factors were "significantly more important than cost or price," according to an IDT news release. Although IDT, which now employs 25 people, received the best technical rating, the DLA., a combat support agency of the Department of Defense, has preliminarily awarded the contract to a British company.

IDT already makes the walls, which it's dubbed the "Metalith," for some bases overseas, and just sent a system to Afghanistan last week, general manager Karl Dundore said.

"We are building these walls and fulfilling this mission, but this was the biggest project," he said. "That's the one we wanted, the cherry on top."

In 2008, IDT received about $1.7 million in defense contracts, according to federal records. Companies in the Rock River Valley collectively earned about $71 million, with another $98.5 million going to SupplyCore.

IDT owners Ken and Tom Carlton were in Washington on Wednesday meeting with federal officials about the matter. The company placed an ad in the Washington Times with an open letter to President Barack Obama, Vice President Joe Biden, Defense Secretary Robert Gates and members of Congress about the matter.

Once the official bid protest is filed with the Government Accountability Office, officials there have 100 days to make a ruling, said Michael Golden, managing associate general counsel.

The initial investigation is done via written reports from both the agency and the company making the complaint, he said. If further investigation is needed, a hearing may be necessary.

In some cases, the federal agency may stay the bid award during the process, but that decision is left up to the agency's leadership, Golden said.

Most of the bid disputes are settled or dropped. In 2008, about 1,600 disputes were filed, but only about 250 of them ended with the GAO issuing a ruling, Golden said.

Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.

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Belvidere company's bid may get 2nd look

The Defense Logistics Agency agreed to take corrective action on the $100 million contract.

By Sean F. Driscoll

Originally presented at BusinessRockford.com

Oct 11, 2009 @ 08:24 PM

 A local company may be getting another crack at a $100 million federal contract that would have added 70 jobs to the region.

Infrastructure Defense Technologies filed a bid protest after the Defense Logistics Agency preliminarily awarded the contract for "expeditionary earth-filled protective barriers" to British firm Hesco Bastion despite IDT receiving the best technical rating for the project.

The DLA has agreed to take corrective action on the February 2008 bid for the barriers, which are metal walls that can be filled with sand or earth and are used to protect military bases in Iraq and Afghanistan. The bid protest was dismissed by the General Accountability Office after DLA agreed to reexamine its solicitation process, said Michael Golden, GAO managing associate general counsel.

"The agency will re-evaluate and make a new source selection decision," Golden said.

Thomas Carlson, a co-owner of IDT and its sister company, Corrugated Metals Inc., said earlier this week that the company would sue the DLA over the bid but later relented after IDT's lawyers talked with the U.S. Department of Justice, which is representing the DLA.

"We're going to wait to see what they come out with in terms of an amendment," he said. "We don't feel confident, but we'll give them the benefit of the doubt. We can still file a protest case in court or another bid protest down the line."

DLA spokesman Dennis Gauci said the agency does not comment on pending legal matters.

The bid specs specified that technical factors were "significantly more important than cost or price." Although IDT, which now employs 25 people, received the best technical rating, the DLA, a combat support agency of the Department of Defense, preliminarily awarded the contract to Hesco Bastion despite its inferior technical rating.

IDT already makes the walls, which it's dubbed the "Metalith," for some bases overseas. In 2008, the company received about $1.7 million in defense contracts, according to federal records.

IDT's protest has garnered letters of support from several political leaders, including Gov. Pat Quinn, Senator Richard Durbin, D-Ill., and U.S. Rep. Don Manzullo, R-Egan.

This isn't the first time that IDT has objected to a DLA award. In August 2007, IDT filed suit in the U.S. Court of Federal Claims over DLA's no-bid contract with Hesco Bastion for the protective barriers. In three years, DLA bought more than $739 million worth of equipment from Hesco without giving other companies a chance to bid competitively on the project.

A federal judge dismissed the suit in March 2008, saying IDT had insufficient grounds to file the suit.