Halliburton's KBR Sees Iraq Billing Settled Soon

[Barrett808]

HOUSTON (Reuters) - Halliburton's engineering and construction unit KBR expects its billing dispute over meals for U.S. troops in Iraq to be settled soon, a senior KBR executive said on Tuesday.

"We expect a decision in the not too distant future," Alfred Neffgen, KBR's chief operating officer for government operations for the Americas told reporters. "It's a big issue for us."

About $160 million in payments has been withheld for the under the food services agreement in KBR's LOGCAP (Logistics Civil Augmentation Program) contract with the Pentagon, pending a decision on possible overcharges by the Army Materiel Command (AMC).

The company could also face a 15 percent reduction in ongoing payments under the food service contract if the AMC determines KBR overbilled, as a Pentagon auditor has alleged.

Halliburton, once headed by Vice President Dick Cheney, is the largest private contractor in Iraq and has drawn criticism for its no-bid contracts there.

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