Posts Tagged ‘point blank body armor’

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Point Blank Solutions Inc.,  who claims to be the leading manufacturer of body armor,  filed for bankruptcy protection on April 14, 2010.   Citing Court filings, Reuters reports that the Florida-based (Pompano Beach) company “supplies more than 80 percent of the U.S. military’s soft body armor vest requirements . . .”  

Claiming mounting legal bills in the trial of former CEO David Brooks - currently on trial in New York for securities fraud and other related crimes - Point Blank Inc. and three affiliates  filed for Chapter 11  protection in US Bankruptcy Court in Wilmington, Delaware.  Tom Hals reports that  “former CEO, David Brooks, was listed as the company’s largest shareholder with a 22.6 percent stake. The company has also been investigated by the Securities and Exchange Commission, is the subject of a shareholder lawsuit, and spends about $600,000 a month on legal fees, according to court documents.”

The South Florida Business Journal reports that Point Blank CEO and Chairman of the Board, James Henderson issued a news release stating that “We have won several key contracts, paid down a substantial amount of our debt and realigned our business to return to profitability.  Without a financing facility and with mounting legacy expenses, however, we had to take this step to reorganize.”

The South Florida Business Journal goes on to report that “in 2007, Point Blank sued its former CEO  (Brooks)  for the return of more than $4 million and other company assets.  Also, in 2008, the company settled a class action lawsuit and a shareholder derivative suit for $34.9 million in cash and 3.18 million shares of its common stock.”

Formerly known as DHB Industries, Point Blank was also cited for supplying body armor to the Marines in 2004 that didn’t meet specifications.  As reported by Nathanial Helms for Defense Watch, “as early as July 19, 2004, according to memos obtained by the Army Times newspaper, the Marine Corps found ‘major quality assurance deficiencies within Point Blank.’ One month later, on August 24, 2004, the military rejected two orders from Point Blank after tests revealed that the vests did not meet safety requirements.   Faced with a severe shortage of body armor the Army decided that nine Point Blank orders that did not meet safety requirements would be sent to troops overseas anyway, according to court records. On May 4, 2005, the U.S. Marine Corps recalled 5,277 Interceptor vests manufactured by Point Blank Body Armor.”   Despite the fact that Point Blank had been consistently supplying the U.S. Marines with substandard equipment, on July 20 Point Blank received an additional $10.1 million contract from the U.S. government.”  Go figure. 

It does seem grossly negligent that the US Army and Defense Department continues to employ contractors whose very public financial problems, questionable integrity and lax quality standards should be allowed to bid upon body armor contracts let alone supply our troops with critical protective gear.   SFTT, families of troops serving in Iraq and Afghanistan and the media have been questioning US military body armor procurement practices for years.   At every step of the way, we have been stonewalled. 

The October 2009 GAO report recommending independent body armor testingconfirms what everyone knows:  there is something rotten in the State of our military procurement process.   Why should our frontline troops and their families continue to suffer because our military leadership has for so long turned a blind eye to this situation?  Will the bankruptcy of Point Blank finally bring about needed changes? 

If past history is any indication, our military leadership will coddle Point Blank through their bankruptcy reorganization.   Our military leadership needs to make a clean break with Point Blank and get our troops the body armor they deserve.  Let’s hope they do, but we will be vigilant.

Richard W. May

By Nathaniel R. Helms

At the time of this report, despite repeated inquiries, the Department of Defense and the US Army had not commented on this report.

So-called “SAPI” plates do not provide complete protection from sniper bullets because of gaps in coverage around the torso.

Two weeks ago the Armed Forces Network (AFN) radio in Iraq reported enemy snipers are now shooting their intended Coalition victims between the so-called hard armor SAPI (Small Arms Protection Inserts) plates attached to the Interceptor OTV body armor, reporter Michael Yon told DefenseWatch after hearing the broadcast warnings in Iraq. The Interceptor’s OTV SAPI plates are intended to defeat most common rifle ammunition used by enemy soldiers in Iraq and Afghanistan. However, because they are gaps between the plates the wearer is not fully protected from a well-aimed shot.

Dragon Skin plates, called “panels” because they are flexible and cover the entire upper torso, are not susceptible to the sniper’s deadly new tactics, Pinnacle Armor officials said. Despite being a better design the Defense Department in 1999 rejected Dragon Skin without comment in favor of its home-gown Interceptor OTV armor although its inferior SAPI plate arrangement then as now presents gaps in the coverage of its hard armor plates on the wearer’s front, back and sides, Pinnacle Armor founder and patent holder Murray Neal said.

The Interceptor body armor system has been in production since 1999. At the time Natick, who designed and approved the body armor, awarded five-year contracts to manufacture it to Second Chance and Point Blank Body Armor of Oakland Park, FL. Armor Holdings didn’t get its share of the pie until later on.

In 1999, Point Blank was losing millions for its parent company DHB Industries. Things didn’t get much better until the events of 9/11 sent the United States to war. In 2001 and 2002 the lucrative DOD contracts provided to the Florida-based company boosted its profits to $10.1 million and $16 million respectively on a combined $228.3 million in revenue, according to industry sources.

Soon after the company received another $9.2 million contract in 2002 to produce body armor for Army engineers charged with disposing of landmines a labor dispute revealed that company was allegedly putting profits before quality. Attorneys for the labor union involved (UNITA) in the dispute submitted 150 pages of evidence in a Florida court that alleged quality problems with Point Blank’s body armor. Among the documents were Department of Defense reports from American soldiers fighting in Iraq and Afghanistan. The DOD documents showed 43 percent of soldiers in Operation Enduring Freedom complained that Point Blank’s body armor “hindered their mobility,” the court records showed.

In 2004 the Marine Corps found “major quality assurance deficiencies within Point Blank,” Marine Corps officials announced. One month later, on August 24, 2004, the military rejected two orders from Point Blank after tests revealed that the vests did not meet safety requirements. Faced with a severe shortage of body armor the Army decided that nine Point Blank orders that did not meet safety requirements would be sent to troops overseas anyway, according to the court records filed in the UNITA case showed.

On May 3, 2005 Point Blank hired retired four-star Army Gen. Larry Ellis to lead the beleaguered company. Before retiring Ellis was the commander of US Forces Command (FORSCOM). FORSCOM is the Army’s largest major command, consisting of more than 760,000 active Army, U.S. Army Reserve and Army National Guard soldiers. Formerly, Ellis served as deputy chief of staff for operations and plans at the Pentagon. On May 4, 2005, the U.S. Marine Corps recalled 5,277 Interceptor vests manufactured by Point Blank Body Armor. On July 20 Point Blank received an additional $10.1 million contract from the U.S. government. Apparently it doesn’t hurt to know somebody, one Pentagon wag exclaimed. As the reader will discover in Part III of this series it really doesn’t hurt to know someone.

During the course of its investigation into the matter DefenseWatch spoke with several contemporary armor experts who are currently doing business with the Department of Defense supplying either expertise, technology, or both to Puzzle Palace procurement officers and officials. With the exception of Pinnacle’s Murray Neal they declined to go on record and spoke only after multiple assurances of anonymity.

One of these men, who began developing and selling body armor and associated products to the DOD before the Vietnam War, said speaking publicly about the procurement procedures used by the good ol’ boys in ultra-plush E Ring charged with obtaining equipment for America’s war fighters is tantamount to committing professional suicide.

“Just check the last three contracts awarded for helmets – three old boys,” he explained. “They didn’t get them talking about it. I can only be a background source mainly because I don’t want people to home in on me.”

In Part III DefenseWatch will explore just who those good ol’ boys are and how they control who gets what on the battlefield.

DefenseWatch Editor Nathaniel R. “Nat” Helms is a Vietnam veteran, former police officer, long-time journalist and war correspondent living in Missouri. He is the author of two books, Numba One – Numba Ten and Journey Into Madness: A Hitchhiker’s Account of the Bosnian Civil War, both available at www.ebooks-online.com. He can be reached at natshouse1@charter.net. Send Feedback responses to­ dwfeedback@yahoo.com

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