mr. fitzgerald, has the army responded officially to this report? >> if you mean formally in writing, no. we have had conversations and they have expressed concern about certain aspects of the report but that have not responded formally. >> ok, they is army material command? >> yes, sir. >> since the army has not responded, would you do that here? >> the drawdown in iraq is off pace. given the dcaa audit and the fact o that thedierno said the drawdown has to be 5%, the actions that i believe are going on are prudent. i am not an auditor. i am an operational statistician for t. the drawdown is very difficult to put your arms around. i would say to you that i will take his record and get back to you with a written response a writtenmc on what are actions are part. the situation on the ground is fluid, as you know. >> i appreciate that entirely but you are telling me that amc has a comprehensive plan to draw down contractors and this is bill contractor is kbr which is 15,000 direct tires, and 35,000 other people. i would think of an auditor told you th

mr. fitzgerald and his staff do for us. the staffing levels we are talking about here were negotiated into the contract, in what i would call a level of effort. we negotiated and told kbr, based on the request of the client, here is how many people they felt they needed at each installation in order to provide these services they need it. >> everybody can be wrong, so you are not just a little bit wrong, you were really wrong. >> i think where we were wrong is we should have been more forceful with our client and going back to our client and forcing them to look at the numbers they have requested we put into the contract. put into the contract. >> don't we have

mr. fitzgerald cd's statement that the comparison with e. that's where the dcaa asked you to make 190 -- in its october report, 193,000 -- excuse me, $193 million of savings. the corresponding kbr plan makes only $27 million. i can give you the periods if you need them. i just want to let them after fitzgerald's statement. if that also is the correct impairment as far as the period of time. they wanted the boy and the auditors wanted 193 million. you would make 27 million. >> mr. commissioner, we don't have mr. fitzgerald statement tonight be glad to get the documents and meet with you either privately or at a later date to be determined to clarify that issue. i just don't have the context of the specifics of what he's talking about. >> you don't know -- >> i would definitely be glad -- >> page 14 of his statements and what he says is your figures in your plan were kbr's will receive a reduction in labor costs. that's your plan of approximately $27 million in the same period, january 2010th through august 2010. you wouldn't know whether that

mr. fitzgerald has shared in one of his documents. in the last month we will cut 60%. that is really good and someone brought this up here, if the iraq government comes in and says let's stretch this support at because we are not ready. we are forced to do planning for august, it leaves me wanting. i address this to you -- i am impressed by your comments on the maintenance posture and i wrote some numbers down. we will get together with staff to talk about that area, because we are trying to get good examples to ratchet up the process, where you say in critical mission -- something along those lines. i am impressed by that. what i am trying to say is my summary in this, i consider it logistics' a critical mission. it is not a critical mission where the region where some electronics that are at the point of the sphere -- where some electronics that are at the point of the sphere. to me, at that is the missing thing. do you have a comment on that? >> i breakdown logistics' very similarly to you do. we fix things and supply things and services to our soldiers. we have got

mr. fitzgerald. >> members of the commission, with your approval, i will present a statement and ask thatmy written statement be entered into the record. it is my privilege to be here representing the united states army material command as well as the service members and civilians supported by the logistics augmentation program. i thank you for the interest in logcap and the services we provide. we are a critical world wide army augmentation program. it has grown rapidly over the years from 2001- present from $55 million to an annual value of nearly $6 billion. we provide critical logistics and life support services for fighting forces, freeing them to focus on their core mission, combat. in 2004, the army developed a contract and strategcontract int future efforts. the strategy formed a preliminary objective. the number logcap program will increase capacity and incentivize contract performance. after extensive coordination with the department of defense and sister services, combatant commands an industry, the army determine the best acquisition approach was to award a single logcap contr

mr. fitzgerald's statement, the comparison would be that where the dcaa asked you to make 193,000 -- excuse me, $193 million in savings, the kbr plant made only $27 million. that also was a correct comparison as far as the time. dthe dcaa wanted you to make $3 million. kbr would only make $27 million. >> i just do not have the context of the specifics of what you're talking about. i would be glad to -- >> it is page 14 of his statement. he says that your projected labor drawdown plan would achieve a reduction in labor costs of approximately $27 million. you would not know whether that is the scale of what you are going to do? >> i have a better perspective. that figure did not compute in this whole thing. now i understand. this goes back to the original audit that was done in august and october of last year, 2009. they made the statement that there could be a cost savings of $193 million. that particular -- >> i am not asking about their figure. was your figure just $27 million? >> i do not know the answer. >> ok. here is a question you should not mind that much. it is your testimony that t

mr. fitzgerald gave to the world when he had me arrested on december 9th and tolded whole world he heardapes and telephone conversations and they had to arrest a sitting governor because he was quote/unquote, stopping a crime spree before it happened. >> a bold man. unafraid of going to the mike. unafraid of trying to subpoena the president of the united states. it's unlikely the president will actually be in court. what do you think? weigh in at my blog. go to cnn.com/fred deke kaw and have your say. we'll share comments later. >>> meantime, what our legal experts have to say about all this. richard herman, avery freeman back with us. richard, you first. the chances of the president of the united states subpoenaed and actually showing up in court for this corruption trial of rob blagojevich? >> he's not going to walk through the courthouse doors and take the witness stand in this case. however i absolutely believe he is going to be compelled to give videotaped deposition testimony that will be used at the trial. >> do you? >> i do believe that. blagojevich is speaking about relevant tes

mr. fitzgerald gave to the world when heed a me arrested and told the world he heard tapes and telephoneversation and they had to arrest a sitting governor because he was, quote/unquote, stopping a crime spree before it happened. that is a lie! >> then president elect obama was reportedly interviewed by f.b.i. agents in connection with the case. it's also been reported that members of the obama transition team, including chief of staff rahm emanuel were in communication with blagojevich about the seat and might be on the wiretap calls. defense attorneys say obama on the sta stand could sort tha out. presidents from time to time are called as witnesses. president clinton gave videotape deposition led by ken starr. other reasonses were reagan, carter and ford. judge zageal will make the call on the motion to get the president subpoenaed. the white house has no comment. >> bret: not surprising there. is the potential it could get ugly for the white house? >> it's possible. but zaigls a pretty no-nonsense judge. if there is no intent by the prosecution to bring in recording including the whi

mr. fitzgerald, why don't you show up in court tomorrow and explain to everybody, explain to the whole worldou don't want all those tapes you made played in court. i'll be in court tomorrow. i hope you're man enough to be there tomorrow, too. >> blagojevich is charged with scheming to use his power to fill a vacant senate seat by selling or trading that seat held by president obama. he illegally pressured donsers for campaign contributions, they say. >>> remember balloon boy, last october a family grabbed all of our attention when they claimed their little boy was trapped in a homemade balloon. richard and mayumi heene will pay out of their pocket. >>> michael douglas's son cameron douglas faced drug charges. michael dogs wrote a letter asking for leniency. some are saying perhaps the sentence was too lenient. let's get the scoop from pop culture columnist courtney hazlet. what did you get? >> he got five years. he's going to be on five years supervised released affiliated that jail time is completed. he also has to do community service. a lot of people are saying this is a case of celebrity

mr. fitzgerald, why don't you show up in court tomorrow?vich, the persecuted former governor of the great state of illinois issued an angry challenge to the prosecutor in his federal corruption case. >> i'll be in court tomorrow. i hope you're man enough to be there tomorrow, too. >> reporter: indeed, blago showed up for his hearing but the prosecutor was nowhere to be found. proving, of course, that blago has been framed and should be returned to the governor's mansion immediately. >> one of the cowboys said, let's hang 'em. >> reporter: as blago fights the good fight, he keeps at his side, fellow heroes of the movement. >> i thought about mandela, dr. king, ghandi. >> reporter: number two, the music stops for america's sweetheart. >> i was scared to death most of the time, to be out there. >> reporter: kate gosselin has danced into our hearts over the last few weeks. unfortunately, she has done so very, very poorly. >> when i watch you dance it's kind of like the charlie brown teacher. >> it wasn't really a dance. it was a strol. >> repor

the ceo-of-canteder fitzgerald and joins us. mr. matthews, good afternoon. >> it is a good time.ertainly we've seen flows go down a little over the last four or five month, but it's still a very good time to be in the marketplace. there are a lot of opportunities out there for a firm such as ours, cantor fitzgerald and we continue to grow our franchise. >> what areas are e growing into? have you looked at the vulcan rule and thought, hell's bells, this is massive for us? >> absolutely. larger institutions it's starting to come into play, where the opportunity will be for us. smaller firms won't have the economies of scale. larger firms regulatory issues. a great opportunity to continue to build our franchise. core comp nancy trading adding investment banks and going to continue to be the best firm right below the bracket. >> what do you do? build that up organically, will you? >> absolutely. we're looking at opportunities out there. it's always difficult to buy financial services firms. if you want a rose or an opportunity is throughout we look at it. certainly we're looking at i