Army awards KBR more work in Iraq
By Robert Brodsky rbrodsky@govexec.com March 3, 2010
Days after the Army announced that KBR Inc. would not receive $20 million in award fee bonuses because of poor performance in Iraq, the Defense Department contractor has won a multimillion-dollar task order to care for U.S troops as they begin the process of exiting the war-torn country.
The Army Sustainment Command and Rock Island Contracting Center in Illinois confirmed this week that KBR had won the first task order for work in Iraq under the new Logistics Civil Augmentation Program IV contract. The contractor will provide logistics support services such as warehousing, vehicle maintenance and air terminal operations, in-theater transportation and postal operations for U.S. troops.
KBR was informed on Feb. 26 of the award, just one day after executives told shareholders about the lost award fees. Work on the task order began on March 1.
Unlike the LOGCAP IV task orders in Afghanistan, which are divided by region, the Iraq contract covers the entire country. The task order is for one base year at $571 million and four option years. If all options are exercised, the contract could be worth $2.8 billion.
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