DOD IG reviews possible KBR overcharges

[norml]

DOD IG reviews possible KBR overcharges
By PAMELA HESS
UPI Pentagon Correspondent


WASHINGTON, March 10 (UPI) -- The DOD is investigating whether a Halliburton subsidiary has overcharged the Navy for hurricane reconstruction.

A review of KBR's bills to the Navy by the Department of Defense's inspector general for work last year restoring Navy facilities in Pensacola, Fl, damaged by Hurricane Ivan suggest KBR may be charging the Navy too much in labor.

Like its contract in Iraq, KBR's Navy construction contract is a cost-plus award arrangement. That means the company earns more in profit if its costs are higher, because its profit is figured as a percentage of the contract's cost.

"The rates paid to some KBR subcontractors for labor were significantly higher than the prevailing Bureau of Labor Statistics rates for the area impacted by the hurricane," the March 3 inspector general report states.

"The underlying documentation for the invoice that KBR submitted in January 2005 for the Hurricane Ivan recovery effort causes us concern about the ability of the Navy to obtain a fair and reasonable price for the labor and material needed to accomplish the tasks associated with natural disaster recovery efforts.... We plan to evaluate the costs paid on task orders issued in response to natural disasters in a follow-on audit," it says.

KBR and the Navy said KBR had to pay higher rates for labor because of the high demand for construction workers after the hurricane. However, the inspector general's report said the Navy's incentive fee to KBR to keep its costs down may not outweigh the added profit from paying higher labor fees.


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http://www.upi.com/SecurityTerrorism/view.php?StoryID=20060310-034633-8825r

[tabasco]

1. I think we know how this investigation will turn out.

Just like the Halliburton investigation.

There are well-meaning people in the military who are sick of these corporations ripping off our money.

But when the investigation gets elevated to the upper echelons, the neocons make it disappear.

The entire purpose and goal of the neocons is to funnel taxpayer money to war-profiteering corporations.

[smtpgirl]

2. Do you think that the DOD will

rescind the charges that KBR, Halliburton has charged the US taxpayers, NOT, Free Money.

Once they take the money they NEVER give it back, for example has any of the ENRON Execs given any money back??

[IndianaGreen]

3. I wouldn't hold my breath waiting for DOD IG

Rumsfeld has politicized the office, which was supposed to be independent. DOD IG was looking into the activities of PNAC neocon and former Comptroller Dov Zakheim regarding funding earmarked for Afghan reconstruction being reprogrammed to support the deployment to Kuwait prior to the invasion of Iraq. It was swept under the rug!

[salin]

4. once again, undoubtedly tax payers will be proved to be defrauded

but KBR will be paid the full contract anyhow - just like in Iraq.