KBR Inc. was selected for a no-bid contract worth as much as $568 million through 2011 for military support services in Iraq, the Army said.

The Army announced its decision yesterday only hours after the Justice Department said it will pursue a lawsuit accusing the Houston-based company of taking kickbacks from two subcontractors on Iraq-related work. The Army also awarded the work to KBR over objections from members of Congress, who have pushed the Pentagon to seek bids for further logistics contracts.

The Justice Department said the government will join a suit filed by whistleblowers alleging that two freight-forwarding firms gave KBR transportation department employees kickbacks in the form of meals, drinks, sports tickets and golf outings.

“Defense contractors cannot take advantage of the ongoing war effort by accepting unlawful kickbacks,” Assistant Attorney General Tony West said in a statement.

KBR, the Army’s largest contractor in Iraq, will review the litigation when it is received and “will continue to cooperate with the government,” company spokeswoman Heather Browne said in an e-mail. “Gifts of dinners, baseball tickets and similar items would violate KBR policies and KBR was not aware of these violations.”

KBR will continue to provide services in Iraq such as housing, meals, laundry, showers, water purification and bathroom cleaning under the new order, which was placed under a military contract KBR won in late 2001, shortly after the U.S. invaded Afghanistan.

Labels: corruption, Cronyism, KBR

It was just a single contract for a single job on a single base in Iraq. The Department of Defense agreed to pay the megacontractor KBR $5 million a year to repair tactical vehicles, from Humvees to big rigs, at Joint Base Balad, a large airfield and supply center north of Baghdad. Yet according to a new Pentagon report [PDF], what the military got was as many as 144 civilian mechanics, each doing as little as 43 minutes of work a month, with virtually no oversight. The report, issued March 3 by the DOD's inspector general, found that between late 2008 and mid-2009, KBR performed less than 7 percent of the work it was expected to do, but still got paid in full.

The $4.6 million blown on this particular contract is a relatively small loss considering that in 2009 alone, the government had a blanket deal worth $5 billion with KBR (formerly known as the Halliburton subsidiary Kellogg Brown & Root). Just days before the Pentagon released the Balad report, KBR announced it had won a new $2.3 billion-plus, five-year Iraq contract. But the inspector general's modest investigation offers new insight into just how little KBR delivers and how toothless the Pentagon is to prevent contractor waste. Moreover, the government's own auditors predict that as the military draws down its forces in Iraq, KBR will keep most of its workforce intact, enabling it to collect $190 million or more in unnecessary expenses. Much of any "peace dividend" from the war's gradual end—potentially hundreds of billions of dollars—could wind up in the hands of contractors.

Labels: government waste, KBR

US soldiers are now being forced to steal water in Iraq. With supplies tight, and the number of trucks carrying potable water even tighter, troops have resorted to stealing water from civilian contractors. Many have also reportedly suffered from dysentery because they were forced to drink untreated water from Iraqi wells.

The shocking news aired Wednesday on Houston-based CBS affiliate KHOU.

It gets worse. Soldiers say the situation has become so dire they were forced to raid the United States’ own airbase in Baghdad for bottled water. They found the water stored in pallets held by civilian contractors, who were supposed to be distributing it.

“It really hit me the day I was with my commander and we’re stealing water,” Army Staff Sgt. Dustin Robey told the station, describing his mission to collect water at the Baghdad International Airport. A second soldier said he’d also stolen water from civilian contractors: “We’d just run out and start grabbing cases of water and start throwing them in the gunner’s hatch,” Private Bryan Hannah quipped.

Soldiers averred that they’d been given two to three liters of water per day by their commanders. But according to the Army’s own field manual, the human body can lose as much as four gallons of water daily in the desert.

Two to three liters isn’t enough, Robey said. “You’ll see guys throw up, you’ll see them pass out.”

Who’s supposed to be maintaining the water supply? At least in some parts of Iraq, it’s the US engineering contractor KBR. KBR is a spinoff of Halliburton, which it separated from in 2007.

Labels: corporatism, corruption, Dick Cheney, greed, just another outrage, KBR

Defense contractor KBR Inc. has been awarded a $35 million Pentagon contract involving major electrical work, even as it is under criminal investigation in the electrocution deaths of at least two U.S. soldiers in Iraq.

The announcement of the new KBR contract came just months after the Pentagon, in strongly worded correspondence obtained by The Associated Press, rejected the company's explanation of serious mistakes in Iraq and its proposed improvements. A senior Pentagon official, David J. Graff, cited the company's "continuing quality deficiencies" and said KBR executives were "not sufficiently in touch with the urgency or realities of what was actually occurring on the ground."

"Many within DOD (the Department of Defense) have lost or are losing all remaining confidence in KBR's ability to successfully and repeatedly perform the required electrical support services mission in Iraq," wrote Graff, commander of the Defense Contract Management Agency, in a Sept. 30 letter.

Graff rejected the company's claims that it wasn't required to follow U.S. electrical codes for its work on U.S. military facilities in Iraq. KBR has said it would cost an extra $560 million to refurbish buildings in Iraq used by the U.S. military, including Saddam Hussein's palaces, which among other problems are based on a 220-volt standard rather than the American 120-volt standard.

KBR announced last week it won a new $35.4 million contract from the Army Corps of Engineers to design and build a convoy support center at Camp Adder in southern Iraq. It will include a power plant, electrical distribution center, water purification and distribution systems, wastewater and information systems and road paving.

Sen. Byron Dorgan, D-N.D., said the new KBR contract was inappropriate. Sen. Bob Casey, D-Pa., said he has formally asked the Corps of Engineers whether it was confident KBR could accomplish it and whether the Corps had any alternatives.

"This is hardly the time to award KBR a new contract for work they've already failed to perform adequately, and which put U.S. soldiers at even greater risk," Dorgan said in a statement. "Ultimately, contractors must be held accountable, and so should those who continue to award these contracts."

Labels: assholes, corruption, economic death watch, Greedy Republican Bastards, idiocy, KBR