PAL Exposed Reveals No-Bid Defense Contract that Wastes Billions in Tax Dollars to Benefit Foreign Corporations

   PAL Exposed Reveals No-Bid Defense Contract that Wastes Billions in Tax
                   Dollars to Benefit Foreign Corporations

Profits sent overseas while veteran-owned businesses forced to close.

PR Newswire

WASHINGTON, Dec. 10, 2012

WASHINGTON, Dec. 10, 2012 /PRNewswire/ --A sole source U.S. Army contract was
awarded to an Australian based company, Lend Lease, despite a Congressional
GAO Report stating it would cost U.S. taxpayers an additional $75 million
annually to implement the contract. Lend Lease obtained a 50 year lease of
federal U.S. military land, and it sub-contracted to U.K. based
InterContinental Hotels Group (IHG) to run the hotel operations on 42 U.S.
Army bases.

Steve Howard of PAL Exposed noted: "The Privatization of Army Lodging (PAL)
program was a no-bid contract which is unnecessarily costing U.S. taxpayers
tens of billions of dollars over the next 50 years. It has also affected
minority and U.S military veteran owned businesses which are now struggling to
stay open. Since we launched the PAL Exposed website in August 2012, there
have been repeated hacking attempts to take our website down."

PAL Exposed was recently notified that hospitality businesses near Fort
Huachuca, Arizona have had dozens of Soldiers pulled back to the IHG Army
Hotel on base instead of remaining with the original contracted lodging
provider. This move is costing the government an additional $100,000 over a
two month period. The main reason behind this move was that IHG has a
guarantee of occupancy under an exclusive In-License Agreement with the Army.
Soldiers may only stay off base once the IHG hotel on post is 100% full. It
took a Freedom of Information Act (FOIA) request to produce documents related
to this In-License Agreement which was never available in open source

Howard added: "The legality of this In-license agreement is highly
questionable. The PAL program stated that IHG would have to compete for
business like everyone else, but Lend Lease could not raise sufficient funds
in the private bond market; two top credit rating agencies rated the bonds as
below investment grade because there was no guarantee that Soldiers would
choose to stay at the private hotel on base over a hotel in town. Within
weeks of this rating, and without notice to Congress or an official notice
though Department of Defense contracting channels, an In-License Agreement
between the Army and Lend lease was signed. This amounts to a guarantee of
occupancy, and a monopoly, for Lend Lease and IHG."

Howard went on to note: "In essence, this is no different than the Army
forcing soldiers to eat at a Burger King on base. It is a private, for-profit
company, and not allowing competition goes against the free market system.
Lend Lease and IHG are both foreign based, private, and for-profit companies.
Forcing soldiers to stay in their facilities at a higher cost to the U.S.
taxpayer is un-American."

This is a follow up to a previous Press Release regarding the Privatization of
Army Lodging issued on August 13, 2012. In the near future, we will be issuing
another press release about how small business owners, including veteran owned
companies, near these 42 Army bases have been severely impacted or put out of
business.Local business groups near a handful of these installations have
also banded together and contacted PAL Exposed in the interest of bringing
this issue to light. PAL Exposed has engaged the offices of Senator John
McCain and Senator Carl Levin through a Congressional Letter but has yet to
receive any official comment or position.

Website: PAL Exposed

This press release was issued through eReleases® Press Release Distribution.
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Contact: For more information visit or email Steve
Howard at or call 571-212-7384.
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