KBR Tells U.S. Army it will Cost $500 Million and Take 13 Years to Close out Its Iraq Contract

[The Straight Story]

The recipient of the largest government services contract in U.S. history has told military officials it will take another 13 years and half a billion dollars to finish off its work stemming from the Iraq war.

This assessment from KBR Inc., which won the $38 billion deal from the U.S. Army way back in 2001, is at the heart of a legal battle between the two sides.

KBR was responsible for aiding virtually all American military support operations as part of the Logistics Civil Augmentation Program (pdf) (LOGCAP) III in Iraq.

With the conflict over and the pullout of combat units, the Pentagon sought to alter the terms of payment for the remainder of the contract. U.S. Defense Department officials want to pay KBR a fixed amount for what’s left to do (which could save it hundreds of millions of dollars), while the company wants to be reimbursed for its efforts, which has been the case since the deal was arranged last decade.

The Army’s move to implement the change prompted KBR to sue in court, where its lawyers argued that the remaining duties will cost $500 million and take 13 years to complete.

http://www.allgov.com/news/where-is-the-money-going/kbr-tells-us-army-it-will-cost-500-million-and-take-13-years-to-close-out-its-iraq-contract-130515?news=850021

[NightWatcher]

1. One dude walking around collecting all the spent brass casings?

[KoKo]

2. Oh Yeah! MIC Strikes Back! Give us our MONEY DOWN...Contractors...WE DO IT!

[Thinkingabout]

3. How we ever took a no bid contract from KBR is beyond me. To thank the US for a no bid

Contract they moved the corporation off shore. They should not be paid another dime until they return to the US and pay any and all taxes due since they left. Another example of corporate welfare.

[Tanuki]

4. It's much worse than you imagine

http://www.politifact.com/truth-o-meter/statements/2010/jun/09/arianna-huffington/halliburton-kbr-and-iraq-war-contracting-history-s/

[Thinkingabout]

6. I know they wrote the specs so as not to entertain bids from other companies. This is not the

First time they have been guilty of overcharging in Iraq. We might be shocked to find how much money was spent on trying to build a road in Afghanistan when our roads is in dire need of repair here. The road was abandoned but money still gone. I hear about Solyndra all the time, it was cheap compared to the waste in Iraq.

[Mr. David]

5. Bullshit. It'll cost you 0 dollars from the US Government

and the rest is paid for by the KBR.

Don't have the money? go bitch at Cheney.

[Historic NY]

7. KBR sue us......US taxpayer. were done in Iraq.

[aquart]

8. Just say no.

That the sleazy scumsucking bastards who electrocuted our soldiers IN THE SHOWER still have a contract reeks of science fiction.

[Scuba]

9. Profiting off war should be illegal.

[Javaman]

10. if it weren't so down right evil it would be comical. nt

[byeya]

11. If the administration wanted to, it could turn off the KBR tap right now. Zero dollars. The claim?

The budget is in the red and the USA can't afford it and national security demands an end to the contract.
With the powers the government wields, the case would be tied up in the courts for decades.
Look how the federal government stiffed the American Indians over oil revenues and it lasted more than 20 years with Obama finally calling a halt to it. The judge threatened Bush's Sec'y of Interior with contempt but it was to no avail.