S & K Technologies

Since the arrest of Robert J. Klein Jr last month, I have tried to find out more about him and the company that originally took him to Iraq.

S & K Technologies is a contracting company owned by the Salish & Kootenai tribes located in St. Ignatius, MT. This very small town on the Flathead Indian Reservation, some 40 miles north of Missoula, is not a household name in the world at large. But is quite well known to the Department of Defense.

As a Tribal-Owned corporation with the Confederated Salish and Kootenai Tribes (CSKT) as the sole shareholder in the company the two tribes, as sole owners qualifies for the Small Business Administration 8 (a) Program. This program gives the company the ability to offer such things as: a sizeable (unable to quantify) line of credit to fund large contracts; SBA 8 (A) qualified, so that they are not subject to the $3 million limitation on services contracts or the $5 million limitation on supply (manufacturing contracts); the ability to establish more than one 8 (a) firm, if Tribally-Owned; the ability to joint venture with other firms, while size standards for sole-source contracts don't applysince they are Tribally-Owned; participation on the Board of Directors is not restricted.

The second program that is avaiable to the firm is the SBA Hubzone Program. This program provides federal contracting opportunities to firms located in "historically under utilized business (HUB) zones." HUBZONE contracts can be awarded on a sole source or competitive basis.

Pause. The 8 (a) program is divided into two pahses over nine years. A four-year development stage and a five-year transition stage. So my first question is, how does the firm qualify for 8 (a) assistance in 2003? You see, there were government contracts awarded under 8 (a) for Iraq to S & K Technologies in 2003. If my math is correct, 2003 would be 18 years from the time of incorporation, or 9 years past the time when the program would be applicable.

In 2003 Robert J. Stein Jr. was sent as an Administrative Support employee of S & K Technologies to Iraq as a contractor. He was "outprocessed" in October of 2004. He was then hired by the American Occupation Authorities as a comptroller and financial officer. He was then subsequently arrested in the fall of 2005 for bribery and kickback schemes. On the S & K Technologies website, they claim the following: We've earned an outstanding reputation by maintaining the highest ethical standards and professional integrity. Mr. Stein was a felon at the time of his hiring by the firm. It may be that Mr. Stein was squeaky clean during his time with S & K, and only returned to his felon ways when he went to work for the government. However, that claim would be dubious.

Back to S & K Technologies in Montana. They have the HQ in St. Ignatius, MT, an IT group in Bremerton, WA, and Aerospace in Webster, TX, Warner Robbins, GA and Dayton, OH. And of course, an office in Washington D.C. Remember that they can form more than one firm or form joint ventures without penalty under the 8 (a) program. Of the contracts mentioned that were let in 2003, one is worth just less than $5 million, while another is worth $27 million. And what kind of operations are we talking about? Some are communications. However, one involves the EC-130H Compass Call Aircraft. This is a modified Lockheed C-130 Hercules aircraft configured to perform tactical command, control and communication countermeasures or C3CM, used for jamming enemy communications.

So, our little firm on the Flathead Reservation now has arms across the nation and is doing maitainance on Air Force aircraft. And they can be given no-bid contracts due to the 8 (a) status. Where else then do we find this outfit working? On their client list we find the USAF, the Saudi Royal AF, NASA, Dept. of AG, the Coast Guard, GSA, EPA, and FAA. Not a bad client list.

My second question. If no one knows about this firm, and they stay out of the limelight, can it be that they are exploiting the system? And, is the government exploiting the fact that they are covered by 8 (a), to let no-bid contracts?

Right now we don't know the answers. But, Mr Stein will come to court during the next year and it will be of considerable interest to see what part S & K Technologies has played in the Iraq saga.