According to the Small Business Administration (SBA) Office of Inspector General, Blackwater may have improperly received numerous contracts set aside for small businesses. In a July 25th memorandum, the Inspector General raised concerns that the SBA did not adequately address several ambiguities and discrepancies that could have disqualified Blackwater from receiving small business contracts.

Although media reports frequently discuss Blackwater, the meaning of the name is complicated. “Blackwater” in its common usage describes several affiliated companies that operate under the umbrella business name of “Blackwater Worldwide.” Many of these affiliates do not have “Blackwater” anywhere in their name, and many of the Blackwater contracts in question were awarded to the affiliate company Presidential Airways. To add to the confusion surrounding Blackwater’s name, “Blackwater Worldwide” was, until recently, “Blackwater USA.”

A recent exchange of letters between POGO and Blackwater provides an excellent example of just how complicated the naming issue is. POGO sent a letter addressed to “Blackwater USA” and received a reply from the General Counsel of “Blackwater Lodge and Training Center,” who used “Blackwater Worldwide” stationery and referred to www.blackwaterusa.com. According to this letter, “Blackwater USA” is a “fictitious business name.”

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