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Halliburton fleeces us in Kuwait and Afghanistan, gets bonuses

Do you hear the giant sucking sound of your wallet being emptied? Tell me, how the f*ck did the company really earn this? What objective standards do they really have to determine “performance”? (Reuters):

U.S. defense contractor Halliburton, under scrutiny for its contracts in Iraq (news – web sites), has been given bonuses for some of its work supporting the U.S. military in Kuwait and Afghanistan, the Army said on Thursday.

But the Army said performance-based bonuses had not been paid yet to Halliburton’s Kellogg Brown and Root unit for dining services for U.S. troops in those countries. Military auditors have criticized those services as too costly and have asked the Texas-based company to justify its charges.

“Dining Facilities costs questioned by the Defense Contract Audit Agency (DCAA) have not been included in Award Fee Boards but are scheduled to be addressed later,” the statement said. Army Field Support Command in Rock Island, Illinois, said award fee boards held over recent months rated KBR’s performance as “excellent” to “very good” for more than a dozen “task orders” in Kuwait and Afghanistan supporting troops.

Much of Halliburton’s work for the U.S. military is on a cost-plus basis, which means the company can earn up to 2 percent extra depending on their performance. An Army spokesman said KBR had been awarded $9.4 million in bonus payments from its work in Kuwait and Afghanistan.

Overall, KBR has earned $7.2 billion under a massive 2001 logistics contract with the U.S. military and has obligations to earn more than $10 billion under that deal. It has separate deals with the government for reconstruction work in Iraq.

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Pam Spaulding

Pam Spaulding