US Army may take back Halliburton's $13 Billion contract after costs dispute
Wednesday, September 8, 2004 at 03:47AM
TheSpook
The US army is preparing to abandon a contract with Halliburton,
the company formerly run by the vice-president, Dick Cheney, which has
been investigated for allegedly overcharging it. The contract to
provide housing, food and other services to US troops in Iraq and
Afghanistan, potentially worth $13bn, is expected to be broken into
smaller parts and opened to competitive bids in the next few months.
The Halliburton division awarded the contract, Kellogg Brown &
Root, has been fighting a rearguard action against allegations of
massive overcharging for much of the past year. Last month Pentagon
auditors suggested that the army should withhold payment of 15% of
Halliburton's invoices in Iraq, saying that the company had been unable
to account properly for at least $1.8bn of the $4.3bn it had so far
asked for. [more ]
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